{"id":7656,"date":"2016-04-19T01:00:23","date_gmt":"2016-04-18T15:00:23","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=7656"},"modified":"2016-04-19T01:00:23","modified_gmt":"2016-04-18T15:00:23","slug":"andrew-winter-is-frustrated","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/andrew-winter-is-frustrated\/","title":{"rendered":"Andrew Winter is frustrated"},"content":{"rendered":"<p>Star of Selling Houses Australia, <strong>Andrew Winter,<\/strong> is frustrated about the many and varied rules that are applied to buying and selling real estate in Australia and he says they are treating you and I like idiots.<br \/>\n<strong>Transcript:<\/strong><br \/>\n<b>Kevin:\u00a0 <\/b>A man I love having him on the show because he is always so much fun, Andrew Winter. Love his show, too, <i>Selling Houses Australia.<\/i><br \/>\n<b>Andrew:\u00a0 <\/b>Good morning, Kevin, how are you?<br \/>\n<b>Kevin:\u00a0 <\/b>Good, nice to be talking to you, and you\u2019ve done it again. How many series are you into now with <i>Selling Houses Australia<\/i>?<br \/>\n<b>Andrew:\u00a0 <\/b>We will start hopefully filming season ten later this year.<br \/>\n<b>Kevin:\u00a0 <\/b>That\u2019s brilliant. Now let\u2019s talk about the weird rules in real estate. I know you\u2019re a bit fired up about some of these.<br \/>\n<b>Andrew:\u00a0 <\/b>I do get fired up.<br \/>\n<b>Kevin:\u00a0 <\/b>I saw another one created in New South Wales making real estate agents now have to record any building inspections and make them then available to any purchaser. Have you heard about that one?<br \/>\n<b>Andrew:\u00a0 <\/b>Yes, I\u2019ve heard about that one. Of course, down there they can\u2019t use the word \u201cOffers over,\u201d either. It does make me tear my hair out \u2013 luckily enough I still have some \u2013 but this is the whole sort of craziness.<br \/>\nI do think we have to have legislation relation to real estate, of course. That\u2019s one of the reasons so many overseas investors love buying in Australia, because of our solid title<b> <\/b>legislation, because everything is protected, which is great. You need due diligence periods, you need cooling off, you need deposits, you need trust accounts.<br \/>\nAll of that is absolutely vital to a successful real estate market, but then I think what we\u2019re seeing now is that we just want to make rules for the sake of it, and I think part of the problem with a lot of these rules is that we\u2019re giving the public absolutely no credibility for having an ounce of a brain, and we\u2019re also making things so litigious that it\u2019s almost\u2026 How some of these rules could ever be policed, and when somebody actually does something wrong, what really happens? Which, to me, is a pointless law. Does that make sense?<br \/>\n<b>Kevin:\u00a0 <\/b>I have to talk about a very pointless one in just a moment, but can you give me a couple of examples of what you\u2019re talking about?<br \/>\n<b>Andrew:\u00a0 <\/b>One of my absolute beasts is this stupid Queensland-only Queensland rule about not being able to discuss price when you decide to take your property to auction.<br \/>\n<b>Kevin:\u00a0 <\/b>We\u2019re going to disagree on this one, but that\u2019s okay, that\u2019s very good.<br \/>\n<b>Andrew:\u00a0 <\/b>I\u2019ll tell you exactly why it is. I have no problem with whether you choose to disclose the price or not. If that\u2019s the way you want to go, fine. Sometimes it works, sometimes it doesn\u2019t. However, that\u2019s the point for me: it\u2019s choice. There should be nobody who says\u2026<br \/>\nIf I\u2019m a seller, if I want to price guide my property at auction, I should be allowed to. If I want $1 million and I want to say, \u201cPrice guide is $500,000,\u201d guess what, everyone is going to turn up and give me $600,000. The market will sort it out.<br \/>\nI throw my arms up in despair, because the other problem is it makes Queensland look stupid.<br \/>\n<b>Kevin:\u00a0 <\/b>I take your point and I don\u2019t totally disagree with what you\u2019ve just said, but let me put it back to you in another way. With price guiding like that, a lot of that is done by agents who want to simply lowball, to suck people in, to get buyers in, to say, \u201cLook, you\u2019re going to buy it for $500,000.\u201d They go, they do their building inspections, all their planning, then they turn up on the day of the auction to find that the reserve is $1 million. That is not fair.<br \/>\n<b>Andrew:\u00a0 <\/b>No, it\u2019s not fair, but it\u2019s free market. I don\u2019t think you should be legislating against things like that. I think that\u2019s why you\u2019re thinking that everybody is that stupid, that they don\u2019t know that that house at $500,000 offers is really going to be worth $800,000 or $900,000. I genuinely don\u2019t believe that, and I think that this is all a sort of kneejerk reaction, mollycoddling a market that doesn\u2019t need it. I think this is the point to me. We can agree or disagree about the principle of it, but I still think a seller has a choice.<br \/>\nWhen their agent chooses to list at a lowball figure, surely the seller is going to have an opinion on that, and the seller should have control over where they pitch it. Sometimes, if you lowball it, the seller can do well from it. Other times, the seller will do disastrously from it and the agent will look very silly.<br \/>\nWhen I tell anybody interstate or overseas that rule, they look at you as if I lost my mind. My concern is that Queensland is supposed to be an international player in the property market and right now we look like someone from kindy. It\u2019s such a joke policy, because it actually is just saying that everybody who buys and sells property is so stupid they can\u2019t discuss\u2026<br \/>\nImagine going to buy your family sedan, which is an expensive item. You go to the dealer, \u201cI like that one, how much is it?\u201d \u201cI can\u2019t discuss prices with you.\u201d \u201cWell, can you give me a guide?\u201d \u201cNo.\u201d \u201cWhat if I offered $500?\u201d \u201cI\u2019ll put the offer, but I can\u2019t sell you that\u2019s going to be close.\u201d Then, you see, you start to chuckle. You have to admit it\u2019s absolutely insane.<br \/>\nIt\u2019s not that I disagree or agree with non-pricing strategy. It\u2019s quite a unique thing; it\u2019s very Australian. Virtually no one else does it anywhere else in the modern market, only Australia, but sometimes it can work.<br \/>\n<b>Kevin:\u00a0 <\/b>Auction of property is very strange in America. They simply don\u2019t understand it.<br \/>\n<b>Andrew:\u00a0 <\/b>No, and in the UK, they only do it for certain types of property, but what I love \u2013 and I\u2019m going to be very UK biased \u2013 is they put a price guide on there really low and sometimes it goes for 50 or 60% more than the price guide and the buyers go, \u201cWell, I thought it might go for more.\u201d<br \/>\nThat\u2019s what free market is. If you want to start controlling the market, we won\u2019t have the property market we have. I\u2019m worried that we\u2019ll start taking more steps along those lines, banning offers over, banning certain wording. \u201cYou can\u2019t do this, you can\u2019t do this,\u201d you think \u201cWell, really?\u201d It\u2019s just getting a little bit crazy for me.<br \/>\n<b>Kevin:\u00a0 <\/b>One of the other things that I\u2019m really concerned about is this exaggeration of what can happen when you list with a certain agent. Let me give you an example. I don\u2019t know how you feel about this because we haven\u2019t discussed it yet, but I\u2019m talking about websites like \u2013 and I\u2019m going to mention them \u2013 OpenAgent, where they actually freely advertise that \u201cIf you come with us, we\u2019ll put you in touch with the best agent in your area, and look what you can do; you can actually get $100,000 over your reserve.\u201d I think that is really bad.<br \/>\n<b>Andrew:\u00a0 <\/b>I actually don\u2019t know how\u2026Usually when you advertise any product and you make any claim, that claim has to be backed up with evidence. Unless they very cleverly have found a property\u2026 Let\u2019s be honest, you could have found a Sydney seller in the last 12 months who possibly had used that service, that their reserve or price guide was $1.1 million and they got $1.2 million.<br \/>\n<b>Kevin:\u00a0 <\/b>I actually put it to them when I had them on the show, \u201cLook, in that particular case, would you accept the fact that it probably had nothing to do with the agent, but it had everything to do with the fact that you had a low reserve?\u201d<br \/>\n<b>Andrew:\u00a0 <\/b>Yes, exactly.<br \/>\n<b>Kevin:\u00a0 <\/b>They denied that. But the other thing that really annoys me is they say they\u2019re going to put you in touch with the best agents in your area, but they don\u2019t; they actually put you in touch with the agent who has agreed to pay them a 20% referral fee.<br \/>\n<b>Andrew:\u00a0 <\/b>Okay, there you go. We\u2019re going to be singing from the same hymn sheet on this one. My problem with any service that directs you to people\u2026 And I\u2019m going to use a name now. Let\u2019s say for example Trip Advisor because it\u2019s so huge. When I look at reviews on there, the people who have reviewed get no kickback, no benefit whatsoever, just because they want to share their good or bad experience.<br \/>\nThe problem with any of these sorts of sites or their component element is what\u2019s actually happening is that if there are ten agents in your town and only eight of them have agreed to sign up with this company, the other two agents might be the ones for you. You\u2019re not going to hear from them. It\u2019s not unbiased.<br \/>\nI know that it obviously doesn\u2019t cost the customer anything, but somebody has to make money. That\u2019s how they\u2019re making money. To me, if you ever want to buy advice, you really should be buying advice and paying yourself.<br \/>\nThis is the trouble with buildings and pest inspection. I kind of really want to buy one myself so that I can speak to the inspector, possibly be around when they go and have a look, and make sure that I\u2019m happy with that inspector, that he or she seems to be looking at it from my point of view. Perhaps for example I\u2019m planning to knock down one half of the house and extend it, they\u2019ll say \u201cLook, this part of the house is terrible\u201d \u201cDon\u2019t worry, just can you focus on that bit we\u2019re keeping?\u201d Or something along those lines.<br \/>\nI know it\u2019s not always preferable or you think it isn\u2019t preferable\u2026 It\u2019s like using a proper, licensed buyer\u2019s agent. You know how they get their fee, therefore the houses or properties that they\u2019re going to show you, there\u2019s no bias.<br \/>\n<b>Kevin:\u00a0 <\/b>That\u2019s right, exactly.<br \/>\n<b>Andrew:\u00a0 <\/b>It doesn\u2019t matter whether you buy that one, that one, or that one. They hope to sell you one of them, but they\u2019ll only get a fee from the one that works best for you, so the system works for the customer. But when you\u2019re not actually paying for a service, I don\u2019t know how it can quite work for you.<b><\/b><br \/>\n<b>Kevin:\u00a0 <\/b>Good on you, Andrew. Andrew Winter from <i>Selling Houses Australia<\/i>, a great show. Make sure you check it out.<br \/>\n&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Star of Selling Houses Australia, Andrew Winter, is frustrated about the many and varied rules that are applied to buying and selling real estate in Australia and he says they are treating you and I like idiots. Transcript: Kevin:\u00a0 A man I love having him&#8230;<\/p>\n","protected":false},"author":176692471,"featured_media":6799,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32,10,11,13,23,27],"tags":[103],"class_list":["post-7656","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-property-topic","category-kevin-turner-sponsored-channels","category-kevin-update","category-latest-story","category-selling-a-property-topic","category-trends-topic","tag-podcasts"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Andrew Winter is frustrated - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/andrew-winter-is-frustrated\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Andrew Winter is frustrated - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"Star of Selling Houses Australia, Andrew Winter, is frustrated about the many and varied rules that are applied to buying and selling real estate in Australia and he says they are treating you and I like idiots. 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