Frequently Asked Questions - FAQ - Buying Property - Gold Coast Real Estate

FAQ - Frequently Asked Questions

Contents

• What is the Gold Coast market like at the moment?

• Are there any special bargains out there?

• How are negotiations conducted in Queensland?

• When buying, should I just get the addresses and look from the road?

• How do Real Estate Agencies differ from Property Marketers ?

• What is being done to stop the practices of the Property Marketers ?

• How can an agent honestly work for both the buyer and the seller?

• How long is the cooling off period?

• How much should I offer?

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What is the Gold Coast market like at the moment?

Prices have risen dramatically over the past 18 months and buyer activity is still at an all time high.

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Are there any special bargains out there?

Yes - There is certainly is - Given the constant rise in prices every property that is for sale at the current market price is a bargain these days. With interest rates still fairly low, desperation sales and mortgagee sales are few and far between.

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How are negotiations conducted in Queensland?

Very differently from other parts of Australia. All offers are made in writing with all paperwork finalised before being sent to the solicitors. Verbal offers are not considered seriously in Queensland.

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When buying, should I just get the addresses and look from the road?

NO - This is a very large waste of time and petrol. The best home for you may only have an average presentation from the street, but you will never consider it because the home that has great presentation from the street (but a dump inside) will have caught your eye. Invest less time and effort and make an appointment with a salesperson and let them do the running around to shortlist those properties that will suit your needs and wants. He may even be able to conjunct with other agencies in the area and contact them and organise for you to see the best properties from each of the agencies. 

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How do Real Estate Agencies differ from Property Marketers ?

Property Marketers are not licensed Real Estate Agents. They sell new townhouse complexes and special residential projects for inflated prices by telemarketing operations. The do not operate under the Queensland Auctioneers and Agents Act that covers and protects out industry nor do they operate a trust account or covered by an indemnity fund. Dealing direct with the developers they sell the property on their behalf and get their income not by commission but by earning huge marketing fees which push prices to far in excess of the market value of the property. They use pushy and aggressive sales tactics to exert high pressure on prospective purchasers.

During their pitch, primarily to Interstate and Overseas investors they ensure that the purchaser is not allowed to view other property (other than they select) to do any sort of market comparison. Property Marketers seek out gullible investors by way telemarketing and seminars on property investment. They then proceed to show fantastic "figures" supporting their stock of property. Any purchaser of real estate, or anything for that matter should investigate any purchase fully to ensure they are paying the market value of what they are buying. Some of the Property Marketers have been known to sell properties for up to $100,000 over its realistic market price.

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What is being done to stop the practices of the Property Marketers ?

The Queensland Government seem to have had enough of the Property Marketers and is currently enacting legislation to ensure that they start to conduct their business on a more fair basis. This has been the result of a long period of lobbying by the Real Estate Institute of Queensland as unfortunately the victims of this type of business has blamed the Real Estate Industry as a whole. This is not the case and these Marketers are not part of the "Real Estate Industry" but work direct for the developers. For more information on this please refer to the recent Newspaper articles in the News section which will display any of the latest.

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How can an agent honestly work for both the buyer and the seller?

Legally the real estate agent’s client is the vendor (seller) in that we are acting on their behalf in selling the property (a similar relationship to that of a solicitor or stock broker to their clients). The relationship with a buyer is different in that it is one of a Seller (or really a sellers representative) to a customer, similar to a store. Numerous government acts and regulations ensure fair treatment and protection in both of these relationships. Besides the legal requirements most good agencies are members of the Real Estate Institute of Queensland (REIQ) whereupon they are also bound by moral and ethical guidelines.

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How long is the cooling off period?

The cooling off period in Queenslandis Five Business Days with the day of signing being considered as day 1 if it is signed on a business day.

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How much should I offer?

There is no golden rule on this despite what an unqualified "expert" might tell you. The amount you offer is dependent on many things including your budget and affordability, the market price of the home and the asking price by the owner. Many homes are sold at full price with absolutely no negotiations at all, but the majority involve some minimal negotiation. The main thing you must remember is to ignore the advice that other so called experts have given you.

Many young first time buyers have been told by their parents/friends/relatives that you can get $10,000/10%/5% or any other set negotiation amount off the listing price. This is just not the case. $10,000 off a $60,000 unit is a large 16% and is very unlikely to ever happen whereas a "10% under the list price strategy" will not kick you many goals in the higher brackets as it adds up to way too many dollars. Just think, would you rather negotiate $10,000 off a home that is $20,000 over the market price or pay the full price for a home that is priced directly on the market price. As you can tell each home will have different requirements when it comes to negotiation and whilst the agent can never suggest an offer price for you, he can at least guide you along the process.

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