September 21, 2023

Improve Our Home

8 methods the brand new Location, Location, Location Australia places homebuyers in danger

6 min read

Who do you ask for property recommendation – whether or not it is to your subsequent residence or a property funding?

Let me let you know who to not take heed to – do not take recommendation from actuality TV exhibits!

In actual fact working with inexperienced or unqualified self-styled “property specialists” may end up in consumers buying a dud for an overinflated worth, in line with the Actual Property Consumers Brokers Affiliation of Australia (REBAA).

REBAA President Cate Bakos stated an rising variety of so-called “property specialists” – together with these on the brand new season of Location, Location, Location Australia – had been doubtlessly placing consumers prone to making unhealthy property choices akin to paying an excessive amount of for an inferior property.


“Simply because somebody has a media profile or tens of hundreds of followers on insta doesn’t make them a licensed, skilled, nor skilled consumers’ agent,” Ms Bakos stated.

“Knowledgeable consumers’ agent will consider current gross sales knowledge and supply a written appraisal on a property’s potential market worth; oversee and prepare due diligence akin to constructing inspections, pest, survey and engineering experiences and – most significantly – negotiate the property buy worth and phrases to call however a couple of companies.

There was no proof of any of this through the first two episodes of the most recent incarnation of Location, Location, Location Australia – which previously had two precise skilled consumers’ brokers serving to homebuyers, however not anymore it appears.”

Take a look at this for unhealthy recommendation…

Ms. Bakos stated there was a litany of issues with the supposed “steering” that homebuyers got through the first two episodes of the present:

  1. No negotiation with the seller and promoting brokers. As an alternative, consumers had been merely inspired to supply as much as their most budgets or the seller’s asking worth – no matter whether or not this determine was above the potential market worth of the property.
  2. No current comparable gross sales evaluation appeared to have been used to find out the potential sale costs of any of the properties.
  3. Lack of any type of due diligence akin to whether or not the properties had any structural points or flood impacts.
  4. Poor asset choice, akin to being on busy roads, and no dialogue with consumers on what this would possibly imply for potential future capital progress. Examples embody consumers buying a house on a busy highway subsequent door to a business constructing in episode one and a property ‘suggestion’ in episode two that was located on a busy highway that carries an enormous quantity of vehicles day by day.
  5. Encouraging consumers to bid on a property at public sale the subsequent day – and likewise permitting them to go over their price range – with none time to undertake the mandatory due diligence. This timeframe is completely inadequate for authorized evaluations, constructing inspections, and full due diligence.
  6. Advised changing the downstairs space of 1 property to a personal retreat however neglecting to notice or level out whether or not it was authorized top or not – maybe as a result of they didn’t know.
  7. No discussions usually round constructing and pest clauses, due diligence, or situations of the affords.
  8. Stating at one level that they should speak to the actual property agent to get extra analysis on a property. Other than the truth that in Queensland there is no such thing as a disclosure obligation for sellers, asking the promoting agent for analysis is a horrible method by any purchaser.

Ms. Bakos stated it was disappointing that the producers of the most recent season of the present had not chosen to make use of skilled and skilled consumers’ brokers as hosts to help people who find themselves investing a whole lot of hundreds of {dollars}.


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