All Topics / Heads Up! / Watch Out! – Sales tricks real estate agents will play on you.

Viewing 9 posts - 1 through 9 (of 9 total)
  • Profile photo of Benjamin CsikosBenjamin Csikos
    Participant
    @benjamin-csikos
    Join Date: 2010
    Post Count: 114

    Ever seen those signs on the side of the road that say 'Acreage from $30'000!' ?  It's pretty exciting to think that there would be land available ANYwhere for that price. Read this before you get trapped by a crafty salesman.

    Allow me to share with you what I, as a licensed real estate agent and ex land salesman discovered during my training was common practice in order to sell land.

    Step 1. Get the absolute crappest piece of land that you can find, maybe something in the middle of a flood zone, a water way, or perhaps something that has a giant power line running through the middle of it.

    Step 2.  Put a cheap price on it, advertise this price like mad in every newspaper, on every billboard, with a different catchphrase for each target market.  Perhaps, "Little house on the prairie" or "Bushland retreat."  Get people excited by the price so they pick up the phone and call you.

    Step 3.  Talk up the property like it sounds amazing and that at the price, it's obvious it will be gone soon, so they'd better go out and take a look at it asap. You'll drive. "I haven't actually seen it yet either." You say.

    Step 4.  On the way to the property, talk about everything in the area, show everything you can that gives the impression that the area is going to shoot up in value. Point out the shopping centre going in, the power plant creating jobs.  Build their trust in you.

    Step 5. Drive to the advertised block.  Behold, the giant power line in the middle of the block rendering it completely useless. Look shocked, dissapointed.  Watch as the customer looks dissapointed. They've come all this way to see this? There goes the dream.  Of course, if the customer is a redneck that WANTS to live under power lines, and loves the idea that they'll never have to pay for power because if you held a fluoro light near it it would light up without being plugged in, then pretend you're happy to sell it to them, but then get dissapointed when you discover that… "It already sold this morning." Move along people. Move along.

    Step 6. Say "Well, it's ok, we have other blocks in this area that we can show you."

    Step 7. Take them to 3 other blocks that you have researched carefully in the area.  The first one is the most expensive block that you can find. One that is about 50 grand overpriced that would never sell.  Say "Look at what these other blocks are selling for!"  do this 3 more times until they believe you.

    Step 8.  Take them to the block you wish to sell. Now that the customer has seen what blocks are 'worth' in the area, has had an emotional rollercoaster going from excited, to dissapointed, and has been given 'fair' comparisons, when they set foot on YOUR block, it all looks really good.

    Step 9.  Take the gloves off. No more mister nice guy. Smash them with every pressure technique, ever sales trick, every sense of urgency and fear of loss statement you can muster. Make sure they don't set foot off that block until they have signed a contract.

    Step 10.  Sign the contract.

    Step 11. Stop taking their calls. When they decide they want to sell the property again and cash in on all the sincere promises you made about them getting rich from this land, ignore them. You know that you sold them a property that was 30-40 grand more expensive than similar blocks in the area and that they'll never get that price when they try to sell.  Yours was only 30 grand too much. That looks a lot better when you show them properties that are 50 grand too much that have been on the market for 3 years, especially while theyre emotional and under pressure.

    Step 12.  Justify it to yourself. Say things like "It's my job to sell property."  "They could have just said no." "If they had done more study for themselves they would see that this property was overpriced."  Ignore that pang of your conscience that worries that you have used your ability to influence people to trust you to get them locked into deals that tie up or lose them amounts of money that take as long as ten years for people to save.

    Repeat steps 1 through 12.

    Profile photo of just startingjust starting
    Member
    @just-starting
    Join Date: 2010
    Post Count: 4

    wow!

    im feeling very vulnerable right now after reading this i dont know where to turn. i called up a realestate agent that has been nagging us to sell him our unit that we live in for almost a year now (b/c there in demand in our area) i wanted to ask him some advice about a property i am looking at buying. i also called up a solicitor and she said just run the other wat b/c your emotionally involved.

    i am currently sub leasing a room off a women who is part owner of a shop but also is the tenent of the same shp. myself along with another 8 people pay her rent money so we can run our businesses from there.

    the building is up for auction next week and i want to purchase it but i dont want her knowing that i bought it as i fear she will either kick me out, increase the rent i pay her, and also demand that i now fix all the mouldy walls/rooms, the garage door and motor that doesnt work. as part owner she has lived with an leftt these problems but now if i purchased it i can guarantee that she will make my life hell and demand i fix everything for her.

    the property was meant to be sold without a lease but the mortgage company has just signed her up for a period of 4yrs along with 3 more with a CPI increase in rent.

    What can i do? can i end her lease? would i dtill have to pay rent to her? can i increase the rent more than CPI, can i buy it without her knowing maybe use a company name???

    can anybody help me?

    Profile photo of Benjamin CsikosBenjamin Csikos
    Participant
    @benjamin-csikos
    Join Date: 2010
    Post Count: 114

    I recommend posting this onto the forum as a new topic. You'll get more people reading it that way!

    Profile photo of number 8number 8
    Participant
    @number-8
    Join Date: 2010
    Post Count: 333

    You can purchase this with a bare trust, your name will not be in public record. Any good accountant will organise this for you.

    http://www.birchcorp.com.au

    Profile photo of PascoePascoe
    Member
    @pascoe
    Join Date: 2010
    Post Count: 16

    Reminds me of a few years ago…..probably more like 7 or 8.

    I bought a property in Brisbane area for 133k in 1998. I live in Melbourne and I recieved a call from a real estae agent from the Brisbane area offering me 145k for the house. This was around 2002/2003.

    I said "has it really only gone up 10k in 5 or so years" and they were quite sure thats the absolute max you could sell it for and started saying things like " its best to cut and run now, its only going to get worse etc etc"

    After politely saying that I didnt want to sell, I did my own investigations and cant remember the exact amount silmilar places were going for (it was 7 or 8 years ago) but it was around the 200k mark.

    I think they were finding interstate owners, calling them up and offering 50k less (or 30%) than real value and hoping that you would sell without checking the real current values.

    P.

    Profile photo of DWolfeDWolfe
    Participant
    @dwolfe
    Join Date: 2009
    Post Count: 1,253

    Hi all,

    This sort of "technique" and I use the term loosely is called bait advertising in the retail world. You hang the bait (cheap product) for the unsuspecting customer and when they come in "oh it's sold out" or "oh that product is not suitable for you" But here is something (of course more expensive) that you can and should buy, since you missed out on the other thing.

    In retail, this type of advertising is illegal.

    Ben, I like your post! I'm sure you are not one of these shonks!

    The other thing about being a sales person is that people will come to you to buy things. They would not buy if they didn't really want to. No they wouldn't! It isn't as if you have a gun on them, you don't do you? :P

    Buyer beware!

    D

    DWolfe | www.homestagers.com.au
    http://www.homestagers.com.au
    Email Me

    Profile photo of HPS buyers agencyHPS buyers agency
    Member
    @hps-buyers-agency
    Join Date: 2010
    Post Count: 1

    Hey everyone,

    As a Property Buyers Agent i have seen these tactics being used within the industry, and for the everyday investor or home buyer Bait adverts and other selling techniques can often make buyers feel pressured in to buying such as step 9 in the original post.

    I must say there are some bad eggs in every industry!!  But at the end of the day the selling agent has a legal responsibility to act in the best interests of the seller. (As where buyer’s agents work for the property buyer) So you can’t blame them for using sales techniques, is just a shame some of those techniques are illegal.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    number 8 wrote:
    You can purchase this with a bare trust, your name will not be in public record. Any good accountant will organise this for you.

    http://www.birchcorp.com.au

    This may make borrowing complicated!

    What about a discretionary trust with a corporate trustee. It is unlikely she will do an ASIC check.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Benjamin,

    I like no. 11 – stop taking their calls!!!!

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 9 posts - 1 through 9 (of 9 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.