Real Estate Buyers Agents Association of Australia (REBAA) warned buyers of risky advice from “unqualified” and “self-styled” property experts, particularly from reality television shows.
REBAA president Cate Bakos said an increasing number of property experts were potentially putting buyers at risk of paying too much for an inferior property.
“A professional buyers’ agent will evaluate recent sales data and provide a written appraisal on a property’s potential market value; oversee and arrange due diligence such as building inspections, pest, survey and engineering reports and, most importantly, negotiate the property purchase price and terms to name but a few services,” she said.
Ms Bakos said there are some examples of “guidance” shown in some television shows that would not be able to help potential homebuyers or investors.
Below are some examples of recent problematic “guidance” seen in television shows:
- Buyers were not engaging in negotiations with the vendor and selling agents. Instead, they were simply prompted to make offers up to their maximum budgets or the vendor's asking price, regardless of whether this amount exceeded the potential market value of the property.
- There seemed to be a lack of recent comparable sales analysis used to establish the potential sale prices of any of the properties.
- There was absence of any form of due diligence to check whether the properties had any structural issues or are susceptible to flood.
- There was a poor asset selection — buyers are encouraged to buy on a busy roads or next door to a commercial building.
- Buyers are recommended to bid at auction the next day, allowing them to go over the budget without due diligence.
- There were no general discussions on building and pest clauses, due diligence, or conditions of the offers.
“We are talking about the most money that many people will generally pay for anything in their entire lives, plus, it will play a big part in their future financial position during retirement,” Ms Bakos said.
“Buying property – as a homebuyer or an investor – should never be for entertainment purposes."
Ms Bakos said stressed that while reality television may be entertaining, it is far from reality when it comes to purchasing a home.
“This very fact means homebuyers deserve an appropriately licensed and experienced operator assisting them to ensure the property that they purchase suits their current and future lifestyle as well as their budget – and will not be a drag on their finances in years to come because they unknowingly paid through the nose for a real estate lemon.”
Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.04% p.a. | 6.08% p.a. | $3,011 | Principal & Interest | Variable | $0 | $530 | 90% | 4.6 STAR CUSTOMER RATINGS |
| Promoted | Disclosure | |||||||||
5.99% p.a. | 5.90% p.a. | $2,995 | Principal & Interest | Variable | $0 | $0 | 80% |
| Disclosure | |||||||||||
6.14% p.a. | 6.16% p.a. | $3,043 | Principal & Interest | Variable | $0 | $350 | 60% |
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