Are you starting out on your investing journey, or already some way into it? Chances are you’ll get overwhelmed by your research, investment choices and options, and make some mistakes. Choosing an expert for advice or other service, such as buying or selling a property, often means having to rely on others for experience or referrals.
As you build your property investment portfolio, at various stages you’ll be involved with real estate agents. Usually they’re eager to share their property investing tips.
Maybe renovating is part of your investing strategy (congratulations if you have one, as many don't) or to buy and hold property or value add in other ways. We did this with a Queensland property we bought 6 years ago, early in our property investing journey. We sold earlier than first planned, doing some renovations ready for sale. Unfortunately when we chose an agent, the market was unfamiliar (different State) and we were focussed on the renovations. As often happens, we ran out of time and made quick decisions.
We fell for the age old real estate agent tricks of being conditioned and bait pricing (read more about that in Property Investing Gurus) Have you, as a buyer or seller, fallen for any of these traps too?
- a higher likely sale price quoted to us (the Vendors), and
- a lower likely sale price quoted to potential Purchasers
In his book Real Estate Uncovered (you can listen here to his short radio interview) real estate agent Peter O’ Malley warns consumers about conditioning and other real estate agent mischiefs.
You can avoid fundamental mistakes when selling if you:
- Get appraisals from more than one agent
- Don’t rely solely on assurances on a potential sale price, without checking local area comparable sales closely
- Choose an agent you can trust and have them explain their recent sales campaigns and results
Neil Jenman, one of the better known critics of dubious real estate practices (and perhaps the most universally unloved in the real estate agent fraternity because of it), has written a forward to O’Malley’s book. Jenman, Ethics in Real Estate and his consumer protection efforts naturally have their supporters and critics.
High profile, respected property investment adviser, media personality and author Margaret Lomas often refers to Jenman’s work; and he has presented at some of her events, so that you can have a better understanding of the real estate industry.
Later in this series of articles are tips on choosing financial planners, advisers and mortgage brokers.
In the meantime, you’ll find throughout BiG, especially in our BiG Directory, Guru Cops and 5 Tips to avoid investment scams and be a winning investor! safer ways for your investing journey. You may also like to go to our opt in box and download our Investing Guide ‘3 Steps to Take for Successful Investing’.
All the very best.