Market Comment – Monday August 10th 2009

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The clearance rates, interest rates, stock levels, underquoting, Vendor Advocates, the list goes on and on putting difficulties in the way of prospective purchasers.

The Reserve Bank has decided to give an unprecedented “crystal ball” style thought on interest rates. They are assuming over the next couple of years to see the cash rate climb slowly but steadily by about 2%. This will match our slow and steady economical capital growth. Whilst this may well help the share market to recoup some of it’s losses over the last 18 months, it will push property prices to new heights. As our economy strengthens so will our property prices.

We have seen the latest results from the government regarding unemployment figures. I think it is now fairly well recognised that we are not going to reach double digit unemployment anytime soon.

And this leads us again to touch on underquoting! The market price is increasing rapidly. Figures out this week show us that any losses over the past 18 months have well and truly been surpassed and that prices are quickly climbing again.

The market is moving profoundly. What might be a foreseeable price at the start of a campaign may not be accurate 6 weeks later. If a large volume of similar property came onto the market all at once then the price the agent set six weeks before auction maybe too high. If all similar properties have sold well within a few weeks the price for a particular property may go up substantially.

Selling agents are there to do everything legally in their power to maximise the sale for the vendor. That’s who is paying them. The government will never be able to legislate anything that will force the selling agent into a position that assists the prospective purchaser to do a better deal. THIS WOULD FORCE THE SELLING AGENT TO BREAK THEIR CONTRACTURAL OBLIGATION TO THE VENDOR.

If you are a prospective purchaser you need professional advice in order to save yourself time and money.

THE FACTS ARE: Selling agents work for the vendor and professional buying agents work for the purchasers. Can anyone remember the last time you were told “Don’t take a solicitor to court to represent you – SAVE SOME MONEY – DO IT YOURSELF!!!!!” There’s an old courthouse adage: A person who represents himself has a fool for a client. Nothing could be more accurate in purchasing Real Estate.

We do not waste time complaining about selling agents tactics. We do not waste our time reporting on specific property transactions, unless they set precedence. Our advocates only attend auctions when we have a client to represent. We do not worry about an agents’ quote, we make our own determinations because we are professional Buying agents. We always listen to what an agent has to say, and sometimes we have to translate this from “Agent’s Speak” to English for our client, but in the most part, Selling Agents do their job and Our Advocates do ours.

If you are considering purchasing property and don’t want to throw away money and effort. If you want to make a good long term purchase and feel good about the process come in and have a chat to JPP Buyer Advocates. We don’t sell any property, nor do we do any vendor advocacy (Selling property). All we do is look after people who are purchasing property. We are the experts. It is what we do!!!!

Give JPP Buyer Advocates a call and set up a no obligation appointment with one of our professional buyer advocates.

Ian James

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About the author

Ian has been operating his own businesses for more than 25 years. During this time the self taught lessons of building the business, dealing with staff, suppliers, clients and economic woes have been invaluable. Ian is a fully licensed Real estate Agent, a member of the REIV and registered with the Business Licensing Authority.

Buying property is not just sticking up your hand and outbidding your rival. It is an emotional, fiscal and psychological decision that needs to be planned and well executed. Ian is usually involved in over three hundred property negotiations per year; ranging from the $250,000 first unit purchase for a young couple to multiple million dollar residential developments. Ian's business background and endless numbers of negotiations make him one of the industry's leading negotiators.

Ian is married with two adult children, living in Patterson Lakes. He is a keen fisherman when weather and business allows the time.