Property Vendor Power will be even more with new Qld Legislation

Barry Osborne


Auction_of_HouseAfter touching on the subject of the new Queensland Legislation regarding the giving out of a price range for properties going to auction, I was pleasantly surprised to find that my opinion was only re-enforced by the one of Australia’s leading residential property experts Andrew Winter.  Andrew Winter who hosts the award winning show “Selling Houses Australia” wrote an article in the Saturday Courier Mail Real Estate Magazine.  Andrew started his article with the statement “Have we all gone mad?” and follower by “Oh yes it will become illegal for Agents to sell a home by auction and list a price guide of any type.” This takes action from December 1st 2014.

The point that really worries me more is that the idea came from somewhere as Andrew says “This latest idea dreamt up by experts and Industry Leaders.” It would be nice to know who these real experts are and what their agenda in bringing about such legislation is. At a time when the Real Estate Agent is not viewed in the best of lights, this type of Legislation only says that the Real Estate Professional cannot be trusted. We are constantly being hit with stories about the tricks that agents get up to, and this is no more evident than in the Auction situation. But in order to stop the agents who are doing the wrong thing, you now penalise the 100% of the agents.   

This represents the 3% Rule in formulating legislation.

When you have possibly 3% of the people doing the wrong thing, you create laws that affect the 100%, in order to stop the 3%. I think it is a little over reaction. But as I said before, someone is advising the government in making such a massive step into a direction “where common sense, logic, even fairness seem to have been forgotten in the pursuit of some harebrained, ill-conceived concept.” I have come into the Industry with an agenda to bring about change and the one area that I am most concerned about is the availability of Information.

Information should be freely available to everyone.

The Internet has done wonders in this area where now the good Mr Google has the information at your fingertips and even more important at the time you want it. However, the Real Estate Industry has been slow to learn and many of the agents have withheld the information or make you work for it by phoning them or by contacting them in some other form. This is archaic. But now it is going to the ridiculous when an agent could be fined for even stating a professional opinion as to what the property is worth.

Is there a hidden agenda here?

But what worries me more is that this agenda maybe working for those agents who have a great desire of pushing clients into Auctions who get their clients to spend heavily on big marketing campaigns and who push the GREED FACTOR that the auction is the way to go to get above expectation in the final sale. However, they seem to forget to tell their clients that the Clearance Rates in Auctions in Queensland is most of the time about 1 in 3, more fail than win, and worse still a waste of their marketing expenditure. But as I have heard Andrew Winter say on one of his shows to a client “Auction is there to achieve the Market Price not the above market price.” It is a pity those agents pushing Auctions don’t listen to his shows.

My closing thought, is it these same agents who are now advising the government?

Now they have legislation that support them to really work the Greed Factor by giving potential buyers no parameters as to whether this property is in their range and not a pipe dream. This just may back fire on these same agencies, as what Andrew says “We may suddenly find buyers avoiding auction listings” and the clearance rates drop even further and hopefully these agencies will no longer be able to keep the truth from the Vendors and we achieve Property Vendor Power which I think is needed.  

What we need is more discussion from the home owners as to what are their views on this topic. The Buying and Selling Your Home is critical to all our wealth creation. We need honesty and transparency in all dealings in the Real Estate Industry and legislation like this may only close off important information that any buyer needs. 

So what is your opinion? Make your comment below it is important.