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July 10, 2020

REAL ESTATE'S GREATEST DANGERS – HOW TO AVOID THEM THROUGH SMART DECISIONS – PART #9 – KNOWLEDGE IS POWER

The danger involved in disclosing vital personal information far outweighs the dubious benefits of such advertising.

A dangerous trend has emerged in real estate advertising, with both privacy and price implications.

Too much personal information is being revealed during marketing campaigns. Circumstances such as divorce or illness are often featured in advertisements as agents try to use bad and distressing situations to attract buyers.

The Sale of a property should have no connection to the motivations of the seller. The price of a property should reflect its features and benefits in relation to its competition in the marketplace, not the sellers reason for selling.

In negotiation, as with all things, knowledge is power.

The more knowledge the buyer has regarding the seller and their personal circumstances, the more power they have and the stronger their negotiating position becomes.

Agents and sellers constantly giveaway negotiation power when marketing properties. Look at any real estate advertising headlines screaming:

-          Marriage Bust up
-          Owners bough elsewhere|
-          Deceased estate
-          Urgent sale – sharks circling!

Such headlines attract bargain hunters. Get-rich-quick seminars are notorious for recommending that investors target properties with headlines like these.

A Sydney buyer’s agent recently said, “Why is the vendor selling? You need to ask” She goes on to say that knowing about a divorce, a deceased estate or a property purchase can save a buyer thousands of dollars.

The danger involved in disclosing vital personal information far outweighs the dubious benefits of such advertising.

A property is a stand-alone entity. It has no emotions or feelings, and this is how it should be marketed. The features and benefits of a property, and how these relate to the wants and needs of the buyer are key marketing and negotiation points in a property sale, not why the property is being sold.

Notwithstanding, sellers and their agent need to have a full and frank discussions regarding the sale. Nothing should be hidden from the agent or from the seller.

Trust is the key to personal relationships. The relationship between agent and seller is personal and private.  If you can’t trust your agent with full disclosure, find another agent.

A professional real estate agent will never disclose personal information. It is neither necessary nor appropriate.


This article is an excerpt from “Real Estate’s Greatest Dangers – How to avoid them Through Smart Decisions” written by Andrew Trim – Managing Director of the Johnson Real Estate group - To receive a free copy, please email mail@goulburnre.com.au and we can post a copy to you or visit our office at 148 Auburn Street, Goulburn.