. Clearance rates falling does not necessarily mean the price is falling. It could mean that the greedy Real Estate Agents have coached their vendor to a higher selling position which is unatainable in this current market.
It could mean that the greedy Real Estate Agents have coached their vendor to a higher selling position which is unatainable in this current market.
Hello Professor Robots,
1. Do you think the govnuts inaction to release land has increased property prices?
Professor: no, plenty across australia for great prices
2. Do you think that global economic activity including overindebtness can effect Oz property prices?
Professor: no, we like our own hobby farm, immune to global issues
3. Have you ever been to the USA to make such assumptions that the whole country has crack available on every street corner?
Professor: no but watch Cops on ch10 all the time
4. Does the availability of credit effect property prices?
Professor: no, we in normal market conditions
5. Where do you see IR's heading in the next 3,6 & 12months?
Professor: down
6. What was the cause of this latest property boom?
Professor: catch up, safety, quality premium asset recognition by investors
7. Do you think that the boom in building that has occurred in the last 12months will ad to supply and have a downward effect on property prices?
Professor: it will take up some supply but will actually maintain or lift prices
8. Do you see the Australian banks as safe?
Professor: yes, thats business and good on them for make a few $
9. What is an acceptable LVR for your first PPOR in the current environment? Professor: i think it is more an issue of employment, 95% is acceptable, take it to 100% if they give it
10. How do you see the govnuts propping up RE prices if we enter GFC 11? Professor: they havent propped up anything so far in properties history so cant see them starting
11. Is the global debt problem able to be resolved without seeing a slow down in the so called recovery?
Professor: maybe a question for another thread
12. If I was a FHB who bought last year on 5% IR's and is now at 7.5% (40% increase in mortgage repayments) and getting financial stretch, can only live on bread on water for so long, what should I do? Sell or stick it out.
Professor: stick it out, get a promotion, cut out the iphone, goof balls, trainers
13. What % increase do you see on Melbourne property this year?
Professor: 2%
Sure I will have some more questions. But that should get things started.
Cheers
Note : Anything written by myself or the Prof is to be construed as financial advice and acted upon. Risk your own money and decisions at your own peril.
hello,
great effort, keep them coming
thankyou
robots
Thanks for the response.
Only like to mention your response to Q10. Wouldn't increasing the FHBG by both Fed and State Govnuts be seen as assisting or propping up the property market?
Cheers
9. What is an acceptable LVR for your first PPOR in the current environment? Professor: i think it is more an issue of employment, 95% is acceptable, take it to 100% if they give it
13. What % increase do you see on Melbourne property this year?
Professor: 2%
thankyou
robots
Some 12 months ago when I suggested that high clearance rates do not indicate higher prices I was howled down.
And Real Estate Agents trying to help vendors to achieve higher prices, you have to be joking, high turnover is achieved by getting vendors to reduce prices. And high turnover at 2%, which 2% attracts, brings in much more for the bottom line if the turnover is double for the year, than a few sales at 3%.
Pull the other leg.
Ha, real estates are interesting in selling, they work on turnover. The difference to their commission of an extra 5% on selling price is hardly worth their time.
The lower clearance rate is selling not accepting current prices.
While on the discussion of Auction clearance rates, it is hard to determine anything substantial really. Once clearance rates drop to a certain level, most real estate agents will convince sellers to go private.
Auctions gain momentum when prices are rises.
It would seem that is not the case at the moment.
Real estate agents dont want to suggest going to auction if the clearance rate is low.
I think auctions are a bit of a circus and the only way I will bid is after asking the auctionier (often many times) is the property on the market. Until it is declared on the market, why bother. Once on the market, you have a chance, until then it is a fluff and feathers.
Looking forward to Q & A with our local Professor of RE.
Cheers
Agreed with most of your summation. RE's require listings so therefore they will "BUY" the listing with an unrealistic price (auction or otherwise) Therefore the price is inflated and fails at auction only to be sold later under private treaty. It is a catch 22 situation. RE's must list to sell to eat. So they must put a bigger price to get the vendor to go with them. If it does not sell at auction but does sell later is a bonus to them as they got their greedy little mitts all over the property in the first place. HELLO ??????????
AGREE on the Auction tactics as well. I prefer to wait until the fall of the second hammer then up the bid by 10k .......... *QUIET* after that ..... ahahhaahahhahhaaaaaaaaaa ! I win the property in the end.
It is funny the tactics of RE agents to get you to sign. Last property I sold I had three RE come and give me their spiel.
1) We list a low price to get people in and then get prospective buyers to bid up the price. The RE agents from the 1st firm came in a group of three tall men, tried pressure tactics and intimidation. Didn't like their tactics and told them so. They got a little upset that I was unwilling to eat what came out of their asses.
2) We list a high price because it gives you room to move. Allows potential buyer to think they are getting a bargain when you drop the price by $50K. I also have a dart board. No go
3) We list at a price that we think is fair and reasonable based on past sales and current RE environment. Their list price was smack on in between the above two.
Went with them after negotiating the commission.
Funny that the other two just didn't give up, even reducing their commission by 50%. Laughed at them, saying, so you were willing to rip me off the first time, what makes me think if I give you the contract that you want try again.
End result, rather happy with the result of the RE agent & firm but for the money they receive they really don't work for it.
Cheers
You're not interested in being the highest bidder which gives you rights of negotiation?I think auctions are a bit of a circus and the only way I will bid is after asking the auctionier (often many times) is the property on the market. Until it is declared on the market, why bother. Once on the market, you have a chance, until then it is a fluff and feathers.
You're not interested in being the highest bidder which gives you rights of negotiation?
Just curious. I've only been in the situation to negotiate with the vendor when I'm making pre-auction offers.
You're not interested in being the highest bidder which gives you rights of negotiation?
Just curious. I've only been in the situation to negotiate with the vendor when I'm making pre-auction offers.
If you really want a property, stay silent till it is stated on the market
Sorry disagree
An important position(Last bid before handing in) one which has gained me more than one property at well below reserve.
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