Buying Investment Property and Trust Issues with an Agent

Zviar on 18/04/2021 - 13:23

I am based out in Melbourne and recently knew about property investment.
I have no zero properties and renting at the moment.
I was introduced to an agent through my neighbor ( which he trusts for several years and bought a few properties already).
This agent, called me over the phone spoke for an hour, and immediately planned to take & show a couple of properties the next day itself.

While he displays a lot of confidence, I am not able to gain trust in him.
I could sense he lies and did persistently persuaded me to make me buy asap.
The worst part is, he is trying to probe a couple of times already to get more contacts from me, to extent his business.
And He repeatedly said "more ppl should get the benefit from the investment. I really want to help ppl".

I accept he is experienced, and he boasts too much, which is absurd at points.
But what I want to know is - he presented a couple of properties only and does not give me full visibility of other properties he has.
Also he pretends to be a part of a bigger group of agents etc but again does give me any catalog or any which their entire group has or publicize.

Can anyone suggest - How should I approach?
Currently he is urging a bit, while I still new and have no idea about if & buts of investment.
Any advice much appreciated.

Home & Garden

Comments

  • Hybroid on 18/04/2021 - 13:26
    +29

    While he displays a lot of confidence, I am not able to gain trust in him.
    Can anyone suggest - How should I approach?

    Never ever EVER trust a real estate agent. They don't care about you at all. They only care about making a sale and/or commission (same for recruiters etc).

    Unfortunately they're still a necessary evil at the moment so go for the ride, ask questions, get info you need in writing and make your own decisions. You are under zero obligation till you sign contract.

    • dust on 18/04/2021 - 14:35
      +4

      Yes. Real estate agents are never your friend.

    • Drakesy on 18/04/2021 - 16:21
      +7

      Used car salesmen of the real estate world dressed in suits and driving overpriced lease vehicles.
      Basically the dregs of society

  • elgrande on 18/04/2021 - 13:26
    +19

    I think you have it around the wrong way. Find a property you like and then call that agent, you're doing it backwards.

    Also, trust your instincts.

    • Indomietable on 18/04/2021 - 22:39
      +3

      I also find it weird having agent spending their time with you in the rising markets.

      What type of property did he show you?

      You might want to be extra careful if it's the property that he shows you

      • Is a high rise appartement
      • Hasn’t been built / off the plan
      • Located in new suburbs

      I personally will avoid those 3 if it was my first time investing.

      • Zviar on 19/04/2021 - 10:14

        Currently he is showing -
        House & land package in Titled developments.
        Its located in reasonably new suburb - near Werribee, Melbourne.

        • Indomietable on 19/04/2021 - 11:20
          +2

          Its located in reasonably new suburb - near Werribee, Melbourne.

          With property investment, it comes down to supply, demand, time in the market and luck.

          If you want to lower your risk you need to invest in a location where supply is constrained.
          That area has a lot of empty flat land around it so supply is almost unlimited.

          Infrastructure ( uni/school/hospital/shops/road/public transport ) and place of business ( where people can get employed ) in that area are quite poor.
          Its also cheaper to pay a mortgage than to rent in that area. These 2 affect the demand side and the quality of tenant that you will get.

          House & land package in Titled developments.

          The component that you want to focus is the land component because this is the only component that appreciates in value.
          You want the ratio of land vs building tilted toward land.
          You are paying premium for newly build / newly renovated property. Ensure you are using market value when calculating the land component as developers normally artificially inflate the land value for new release.

    • megadeth on 19/04/2021 - 00:08

      In a hot property market, OP will struggle to even get call backs. It's a seller's market at the moment and agents choose the buyers. Old story with Australian real estate.

      • Zviar on 19/04/2021 - 10:16
        -1

        I am surprised to hear that. "seller's market at the moment"

        • Bob Svargis on 19/04/2021 - 12:04

          It surprises me that you're saying that. I would strongly recommend that you do some more research into the area you're looking at. It is a seller's market right now - that is not in doubt. Some pockets might be less of a seller's market than others, but you need to be aware that due to interest rates being the lowest they've ever been, there's a lot of buyers and not enough stock.

          I wouldn't trust the agent. Do your own research about the area you're looking at buying into, and don't trust the agent - they act for the seller, not the buyer.

        • Indomietable on 20/04/2021 - 20:14
          +1

          It surprises me that you're saying that.
          Some if not majority of people have tunnel vision when it comes to research. OP seems to only focus on outer west Melbourne, ( which perform poorly) so no surprise he didn't know how insane the current market condition

          and not enough stock.

          Outer west area of Melbourne has plenty of stock. I just checked and there are close to 3000 stock in Werribee and surrounding.

          Comparing house in similar distance suburbs to the city :

          https://www.realestate.com.au/neighbourhoods/werribee-3030-v…

          VS

          https://www.realestate.com.au/neighbourhoods/ferntree-gully-…

          You can see the massive discrepancies in the supply and demand graph.

  • mbck on 18/04/2021 - 13:33
    +2

    Run like the wind. Avoid like the plague (ok this has been proven wrong).

    At the end of the day, it's your money, don't let anyone pressure you Into anything.

  • orangetrain on 18/04/2021 - 13:36

    If they ask you to agree or sign anything, do your own research. You are not required to. If you feel pressured and agreed, the law will side with the agent.

    • Zviar on 19/04/2021 - 10:17

      any suggestions how do we do the research?
      are there any websites to validate the price this man is quoting?

      • orangetrain on 19/04/2021 - 10:22
        +1

        You can validate the price by looking at property prices and trends in area, # bedrooms/bathrooms, etc and use your judgement whether the price sounds reasonable. Domain, onthehouse, cordell calculator, etc

        • Zviar on 21/04/2021 - 07:23

          Thanks mate.
          These are some new resources - "onthehouse, cordell calculator"

  • Peter Enis on 18/04/2021 - 14:05
    +5

    Tell the agent thanks but no thanks. Shop on Domain and Real Estate, choose your own property.
    Sounds like one of those property investment schemes. I would steer clear.

  • Hithere on 18/04/2021 - 14:11
    +7

    I could sense he lies

    How to be 100% sure— If their lips are moving they are lying.

  • iNeed2Pee on 18/04/2021 - 14:15
    -1

    Buy a house to live in before you decide to buy an investment. That's my opinion but what do I know.

    Most agents are crooks. They underquote absolutely everything….but what I have found is that female estate agents are not as dodgy as the males.

  • CyberMurning on 18/04/2021 - 14:34
    +2

    They're pretending to be your agent ie buyer agent but no… they are sellers agent for sure…… bunch of liers…. lower than lowest…

    • Zviar on 19/04/2021 - 10:18

      Agree and he is 200% sellers agent.

  • pegaxs on 18/04/2021 - 14:53

    I got a used car salesman I know… great guy.. should come and meet him. He will get you some great deals…

  • trustnoone on 18/04/2021 - 15:12
    +1

    It sounds like you're looking more for a buyers agent to help find you a property for investment? Not a real estate agent whose job is to sell a house at the highest price in an efficient way?

    Also don't trust anyone, make sure to do your own research also, your own checks and that everything is okay.

  • tallkid123 on 18/04/2021 - 15:22
    +1

    Just say you're no longer looking at the moment and thanks anyway.

    The 'agent' will then try to reason with you a bit more and then stop contacting you quick smart.

  • Donaldhump on 18/04/2021 - 15:36
    +2

    a real estate agent ringing you? have i missed something. you can practically walk into a property with a brief case of gold and they are not your friend, as some other person has more.

    • Zviar on 19/04/2021 - 10:24

      yeah he does ring.
      I was almost about to confirm a property from him, but then I said ' nope'.
      He was visibly upset, and he started repeatedly say "you are missing gold".
      Then he said - "I may be missing a once-in-a-lifetime opportunity".

      • Donaldhump on 19/04/2021 - 16:37

        if someone else says your missing out on gold just ask him why he doesnt buy it himself…. pretty obvious bullshit is dribbling from his mouth.

  • JIMB0 on 18/04/2021 - 15:38

    Is he one those agents that works with developers and only sells poor quality and overpriced new property?

    • Zviar on 19/04/2021 - 10:24

      Overpriced for sure I felt.

  • CyberMurning on 18/04/2021 - 15:43

    Got a friend work as agent mostly sell apartments he told me meriton mirvac basically own him and the agencies. When they say sell this that this at this that price they must follow otherwise next time he wont be able to get anything to sell from them.

    Also trick is if he want to sell x unit due to high commission then will show that x and other 2 bad units so buyers will think oh the x is best lets buy it.

    • Zviar on 19/04/2021 - 10:26

      100% I can relate to my scenario.
      I've heard the exact sentences!

  • deme on 18/04/2021 - 15:57

    You have FOMO and avoid confrontation. He can sense this.

    Can anyone suggest - How should I approach?

    He's a leech, tell him no and go on with your day.

  • bobbified on 18/04/2021 - 17:07
    +1

    I am not able to gain trust in him.

    Simple solution - ditch him!

  • Mechz on 18/04/2021 - 17:28
    +3

    Let him show you properties and use that to compare against your own research. Waste his time to your advantage.

    It's the fair thing to do.

    • Zviar on 19/04/2021 - 10:29

      I gotto learn the ways. Thanks Mechz.

  • kasumi on 18/04/2021 - 17:44

    If you feel u can't trust him then get rid of him. You do not owe him anything, nor your neighbour - and i suspect the referrers might get a kick back as well. Plus the agent can probably see you're a noob and will pounce on this chance to sell you a non desirable property, or at an over inflated price.

    As this is your first property, it is a large sum of money to spend and to be jumping into anything without doing your research. Research which areas are the most desirable (location, transport, amenities, schools etc) that are within your budget and look from there, attend open houses, auctions etc

    If you're totally in the deep end, finding a buyers advocate will help as they work for you (not the real estate agent, who works for the seller) for a commission. Joining FB groups regarding property will probably have recommendations on buyers advocates or steer you in the right direction of what areas to look for

    • pharkurnell on 18/04/2021 - 18:17
      +1

      If you feel u can't trust him then get rid of him

      if that was the case with agents, you'd never buy anything ever ;) Please dont wait till you feel you can trust an agent, you'll be 99yrs old and it wont matter.

  • SF3 on 18/04/2021 - 17:57
    +1

    I am not able to gain trust in him.

    With a REA.

    Run forrest run.

  • websterp on 18/04/2021 - 18:37

    Wish I could be your neighbour…A REA once offered me 20% of his commission for every successful intro I'll be sending his way.

  • Meho2026 on 18/04/2021 - 18:41
    +6

    Just thank him for showing you the properties. Then tell him you're not going to buy anything right now but when you are ready you will get in touch. If he pushes you about not buying now, tell him your financial circumstances have changed and you are no longer in a position to buy.

    Trust your instincts, this person doesnt sound like a decent agent. As everyone else has told you, all agents work for the sellers, even then the only thing that motivates them is commission. None of them can ever be trusted. Some are excellent sales people and suss out how you tick and play you. The others are basically lying conmen/women.
    This is why you must do your due diligence, double check everything an agent tells you by checking through other sources.

    When you're buying its really smart to establish relationships with agents. If an agent knows you are a serious buyer and you build a rapport with them, you can end up getting to see properties before they officially go on the market and are advertised or you can get offered a deal when a sale falls through. In order to be in that position you need to have everything in play, at the very least, loan preapproved, know what kind of property you want, know what you can pay, willing to pay a fair price and ready to pull the trigger without shitting your pants.

    It sounds like you need to educate yourself a bit more. Start with the government and financial institution resources, then read a book or two on property investing in Australia.
    You need to be familiar with the loan approval process, your borrowing power, the steps of purchasing, prepurchase inspections, suss out a reputable conveyancing solicitor, the additional costs involved, LMI, identifying growth areas, differentiating dud properties from investment quality, positive cashflow properties versus negative cashflow and how to calculate the yield. Plus a whole load of other things. Once you are all over that stuff you can take charge of your relationships with the agents.

  • 82norm on 19/04/2021 - 08:07
    +2

    As many have said, do not put your trust in a real estate agent. First and foremost, start doing your own research. If you don’t have time or you don’t know where to start, then property investment is not for you. Don’t rush into anything, don’t fall for the FOMO CRAP. Between the media and real estate and not to mention financiers they love you ham that stuff up, after all it’s what keeps them employed. Set your budget, limit and expectations and when the time comes and it feels right, then go for it…..but remember, do your homework. Good luck.

  • hueylewis on 19/04/2021 - 09:33

    The property ultimately sells itself. The agents just put the deal together after the buyer decides to pull the trigger. The buyer who pulls the trigger usually has more important reasons than just the horse trading by the agent prior to the sale. Agents are all about listings. They really want properties to sell, that is how they earn. Without anything to sell, they go broke. They make you think that it is them who actually get the place sold, but selling is not the priority. Yes, they want it sold, so that they get a commission, but they know that is usually a forgone conclusion. It is all about Listings, Listings, Listings. That is why the first thing they ask you, if you inquire about a listing is, "Are you selling?" Their obligation is to the vendor, who they want to keep happy and not lose that listing. The buyer is just a means to their end. This is what I have observed over decades.

  • saltypete on 19/04/2021 - 09:57
    +1

    Your trust issues with the agent are a good indicator of you having a healthy amount of empathy. They are there to sell you things, not to be your friend. If you can gain value from his information etc that is fine, but as others have said - you owe him nothing!
    Just remember - the fact that you don’t trust him is likely because he hasn’t learnt to make people trust him very well. The agents you meet that you like are exactly the same, but have honed their personal skills. 😩

    • Zviar on 19/04/2021 - 23:05

      thanks for your kind words and advice.
      Particularly these are eye openers — "The agents you meet that you like are exactly the same, but have honed their personal skills."

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