Why are agents still so ubiquitous in the real estate market?!
The seller meets the agent who attracts the interest of buyers through internet ads that can be placed by the seller! Why not just cut out the agent and save on the commission? Are they legally required for a property transaction to occur? It doesn't make sense that you can sell many assets online without the need for an agent, yet agents are still employed in the sale of houses
Why are agents still so ubiquitous in the real estate market?!
The seller meets the agent who attracts the interest of buyers through internet ads that can be placed by the seller! Why not just cut out the agent and save on the commission? Are they legally required for a property transaction to occur? It doesn't make sense that you can sell many assets online without the need for an agent, yet agents are still employed in the sale of houses
The reasonable assumption is that an agent - with his shop front and usually large generic display advertising - will provide a far greater base of buyers.You don't need an agent. We bought our last house off a private seller, that was a good few years ago now though. I think most people think it will be easier/less work to sell using an agent.
Why are agents still so ubiquitous in the real estate market?!
Interesting article in the Telegraph, House crisis looms
http://www.dailytelegraph.com.au/realestate/buying/house-crisis-looms/story-fndbpo91-1226475536529
Thats an accurate assessment, this situation has been coming for a while now and it wont be pretty.
I can think of nothing worse than having borrowed a bucket load of money and then seeing the value of your home dropping
It started with Rudd, when he relaxed the FIRB laws allowing Chinese (in particular) to buy anything the lliked in effect, that's when prices just went ballistic, I attended auctions for friends where Chinese students outbid them , they didnt care what they paid, just didnt care at all, the money was coming from their parents in China.
Low interest rates as well created the perfect storm and the riduculous doubling of the first home owners grant and encouraging everyone to "get into the market" to keep the housing sector going.
It will end in tears as the forced sales depreciate the worth of all the properties around them.
I blame Rudd and Labor for whats to come.
Good assessment but you forgot my personal bête noire, negative gearing
I blame Rudd and Labor for whats to come.
Oh no not you as well Mr B.
I fail to see how we can blame anyone in particular for decades of reckless debt accumulation and investment speculation. Rudd didn't help, but it's merely the icing on a 10 tier cake.
**** is poised to hit the fan, falling property values will be the least of everyones worry(although a big one)
its a natural thing to scapegoat our greedy politicians, but imo a fair lump of the blame it to be put on the boomer generation and their greed, a cocktail of greed coming from all parties in society....
Yes, I can see your point. It is always an issue when one group has more than another.
But Government policy sets the agenda. Negative gearing would have been a policy to encourage housing construction in an earlier phase of our history i.e. it is a developmental encouragement that in 2012 is merely a tax avoidance system. No CGT on sale of the family home seems like a fair policy, but it is being exploited, as in NG, to being a tax dodge, used to the extreme by the very rich. What would you do with $6m ?, anything but the family home incurs tax.
I strongly believe that housing data being published by other market researchers in the press does not present an accurate picture of what is happening. In fact, it is probably the reason why reported figures are not in line with other indicators of what is happening in the market to the ordinary Australian. My point is very simple: the total dwelling statistics being reported suggest that the majority of property owners in Australia are seeing growth in their principal asset hence they should be feeling more comfortable, starting to spend a little and increasing their activity in housing markets. If this were the case, consumer sentiment surveys would also point to a more confident population…
I believe that, given the current interest rate setting is attractive, the market should be moving forward more strongly than what we are seeing.
Auction clearance rates are stubbornly holding within the 50-60 per cent range. Latest ABS figures suggest housing finance numbers fell by 1.4 per cent for owner occupiers and 2.7 per cent for investors. Based on these figures, it is difficult to believe that the market is as robust as the press is suggesting.
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I believe the slow pace to better times is a result of uncertainty and that any significant improvement won’t be seen until there is uplift in sentiment.
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The simple truth is, in an environment where sentiment is fragile negative news accumulates and contributes to low consumer sentiment. This is perhaps partially responsible for the market downturn in the dwelling price growth in August, after the growth that appeared to be getting underway in July. I also note that the press was reporting a slowing in the Chinese economy in August.
I accept my above statements are somewhat downbeat; however this is based on the average market position that exists for the median property in any given city. Areas within a city are not all going to perform at the same rate as the median. There will be areas the perform better or worse that the city market as a whole.
Suggest you read some of the decisions by Sir Garfield Barwick, Chief Justice of Australia from 1964 to 81.
Do you have a link to the relevant decisions ?
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