Real Estate Market Plagued by Unclear Advertising?

SlavOz on 12/01/2020 - 12:33

Had this been an ongoing complaint in the industry or is it just me? In searching for places to rent or buy, I've noticed a very consistent habit among listers to either not disclose the price of the property (instead simply saying 'Contact agent'), or even falsely claiming the features of the property (such as by labelling studio apartments with '1 bedroom').

Granted these are small quirks, but given how tightly regulated the financial sector is in Australia, particularly around loans and other potentially life-ruining products, how is this not being stamped out? Would it be acceptable for a bank to label a loan with 'no interest' when it does in fact have interest, or for a car dealership to only reveal the price of a car once you go in and talk to them for hours?

I'll be interested in seeing where this goes.

Home & Garden

Comments

  • capslock on 12/01/2020 - 12:39

    Must be a NSW thing. Real estate advertising in VIC requires a statement of information which contains the price.

    • Soluble on 12/01/2020 - 15:05

      As per this even if the price isn't listed on realestate(com)au you just click the statement of information and it's in there anyway.

      Before I found this I just searched price ranges until the listing disappeared/reappeared as a guide for its price.

  • holdenmg on 12/01/2020 - 12:40
    -3

    Buying land or property is a subjective thing. Once you put a price on it, someone will offer less.
    So, let the market decide.

    Put a sign up that says “all offers received, none necessarily accepted” or if you are cheap, no sign at all.
    (Less effective). Lol

    A Term Deposit with a Bank or even a Home Loan is going to have a Term and Application Fees etc.
    Most banks will state the real or effective rate for comparison purposes.
    Subject to application and approval of course.

  • whooah1979 on 12/01/2020 - 13:01

    Do your homework before signing the contract.

    • SlavOz on 12/01/2020 - 13:10
      +3

      Of course, but I feel like when agents make blatant efforts to get you to visit them or call up and discuss (ie, move you further through the buying process), they're clearly doing so to try and get you to agree to something you otherwise wouldn't agree to. It reeks of dishonesty. Most property buyers will and should be smart enough to know what they're getting into, but that doesn't excuse blatant efforts by agents to convince you to do something you weren't intending.

      • whooah1979 on 12/01/2020 - 13:18
        +4

        People need to eat. They’re doing what is necessary to get potential buyers in the door.

  • Ughhh on 12/01/2020 - 13:16
    +4

    Would it be acceptable for a bank to label a loan with 'no interest'

    But the houses aren't advertised as "no rent/price", its saying to contact them for the price.

    The ad is an invitation to treat, if you find the treat a pain in the butt, then ignore ad. You're not forced to rent/buy that place.

    • SlavOz on 12/01/2020 - 13:30
      +2

      I was comparing it to incorrectly labelling how many bedrooms the property has (studios being labelled as 1 bedroom). It just feels like false advertising.

  • capslock on 12/01/2020 - 13:25

    Annoying but no different to going to a garage sale, an EzyMart store or engaging with a taxi tout at the Melbourne Airport arrivals hall.

  • try2bhelpful on 12/01/2020 - 14:48

    This is much more concerning. Price is negotiable but a property with defects is costs you aren’t aware of.
    https://www.domain.com.au/news/buyer-beware-what-are-your-ri…

    • Donaldhump on 12/01/2020 - 16:17

      Act has it right, Would make sense for the seller to get the report from an independent inspector, and making it available for any buyer…. like rego for a car…

      • whooah1979 on 12/01/2020 - 16:20

        It makes sense that they may charge a fee for printing it.

      • try2bhelpful on 12/01/2020 - 16:20

        Completely agree. Getting a report for every place you are interested in, particularly for Auctions, is nuts.

      • Ughhh on 12/01/2020 - 17:23

        Would make sense for the seller to get the report from an independent inspector, and making it available for any buyer

        Honestly though, would you completely trust it, considering the reputation of real estate agents? The 'independent inspector' could be in cahoots. Does rego check tell you if the car is rusty underneath?

        • Donaldhump on 12/01/2020 - 17:38

          Then get your own inspection as well, the same as a car, for a second op8nion.

          If an inspector wants to give up his livelehood and risk being held liable for being in cahoots and turning a blind eye not much you can do, but they will have mandatory insurance and you have someone to sue, if latent defects, maybe even patent defects are not stated.

          It puts the vendor on notice they are aware of defects.

        • try2bhelpful on 12/01/2020 - 19:12

          If it was done by a reputable firm that would be OK. The legislation would have to find the inspector liable for not detecting major faults.

      • HighAndDry on 12/01/2020 - 21:13

        In that analogy, the car buyer is the one who should get it inspected. Same as the ppty purchaser.

  • Donaldhump on 12/01/2020 - 16:15
    +3

    I love it when house have 4 bedrooms and a double garage, but the garage is now a bedroom

  • Peter Enis on 12/01/2020 - 16:32

    I remember a unit on the river in Ermington being advertised as being on Sydney Harbour!

    • try2bhelpful on 12/01/2020 - 17:16

      The classic was a place in Toorak, Vic, advertised with distant glimpses of a Sydney Harbour. Obviously a piss take.

  • OzHunterNSW on 13/01/2020 - 09:45
    +1

    They are car salesmen in the real estate game.
    Ideal for handyman —- dilapidated premises.
    Close to train station —— right on tracks.
    Studio —- cramped bed-sitter.

    Make a list of the various terms used and then you will get the picture.

    • try2bhelpful on 13/01/2020 - 09:48

      look up Fred Dagg real estate agent. Hilarious sketch by the great John Clarke.

  • Euphemistic on 13/01/2020 - 10:46

    Real estate by its nature tries to sell each property at the highest price by talking it up as much as possible. After a while you learn how it works. If you haven’t discovered that real estate agents ‘embellish’ you’ve been living under a rock.

  • brad1-8tsi on 13/01/2020 - 11:49

    Yes, the advertisements are full of lies.

    When I was buying in 2017 the worst was an off street parking spot that would have required you to drive up 2 steps. Even if you achieved that (4WD?) there was no guarantee that the tiles would hold the weight of a car. The RE was serious when they suggested you could move the tiles (approximately 2 tonne in weight) to park the car.

    Another apartment listed as 3 bedrooms had the 3rd bedroom as a cupboard space under the stairs (just like Harry Potter). It was 2.3m x 1.5m.

    Many other instances of total BS.

  • LFO on 13/01/2020 - 23:58

    It is an industry used to "handle the truth carelessly". All the time, every time.

    Unfortunately, sellers and buyers and agents are all happy speaking a loose language full of vagueness and inaccuracies.

    As an example:

    1. Sydney used to have "flats". And only "flats". Now everything is an "apartment". Even all old flats …

    2. All over the world a "penthouse" is the one and only top level unit/apartment. They however advertise several "penthouse" per building.

    3. All over the world a "duplex" is a two (2) levels unit/apartment with its own stairs or internal/private lift. They however advertise "duplex" as two units/apartments per level.

    4. All over the world a "triplex" is a three (3) levels unit/apartment with its own stairs or internal/private lift. They however advertise "triplex" as three units/apartments per level.

    The list goes on …

    Don't fight them, join them.

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