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Tricks real estate agents use to sell

They trade in the biggest purchase of most people’s lives, but also rate among the least trusted professionals.

Real estate agents can be a formidable front-door presence at open for inspections, and the best are able to leverage the emotional environment of sales and auctions to their advantage.

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With the spring property season well underway, at auctions and sales across the country this weekend sellers will reap the benefits of rapidly rising housing prices, while some buyers will be left with a feeling that they have overpaid.

Last weekend, there were a total of 2536 auctions across Australia with a clearance rate of 69.2 per cent, according to RP Data. In Melbourne alone there were 1218 properties listed for auction with a clearance rate of 69.3 per cent.

And prices are on the rise, with many concerns from economists about a housing bubble. In Sydney, the nation’s strongest market, prices have risen by 15 per cent in the past year.

Richmond

SOLD: 336 Burnley Street, Richmond at $2,544,000.

This rise has led to some astonishing sales.

In Melbourne this month a decaying 771 sqm property in Richmond sold for $2.5 million. That was $900,000 more than the vendor bought it for two years ago.

Likewise in Sydney a derelict house in Balmain East sold for $2.7 million – $830,000 above its reserve price.

And at the middle of all these sales are real estate agents, who take their piece of each deal.

Even if you are a first-time home buyer, there are ways to even the playing field by understanding some of the subtle selling strategies used by the top agents.

Creating urgency

President of the Real Estate Buyers’ Agents Association of Australia, Jacque Parker, says the best agents are experts at creating a sense of urgency at open for inspections.

“They let the home hunter know if there are other parties that are interested and it taps into the buyer’s fear that they may miss out on the house,” Ms Parker says.

If an agent mentions another buyer, Ms Parker says the trick is to probe the agent for details.

“I would simply say, ‘So what can you tell me about the other offers?’ and then let them talk,” Ms Parker says.

“Some agents may even tell you quite a lot. You could also ask about the other buyers’ situations, and when the offers were made and what the vendor’s response was.”

While a lot of home hunters simply attend a property’s open for inspection, ask for a copy of the contract and then leave, Ms Parker says buyers should find out exactly why the person is selling which could be crucial information in negotiations.

“And don’t just ask the agent, ask any of the other office staff at the open if you can, so you can verify the information,” she says.

Home prices have rebounded over the past two months after a large May dip.

Auction fever

Director of Keyhole Property Investments, Melissa Opie, says auctions are in a class of their own when it comes to moving the hearts and minds of homebuyers.

“The best auctioneers really come into their own at auctions, and it really is a learned skill,” Ms Opie says.

“They need to have a commanding voice and are taught to use a certain tone which brings out the emotion in the crowd.”

Ms Opie says often agents will call out to the prospective purchasers during the auction preamble speech to show how much interest there has been in a property.

“If they see a buyer in the crowd they may mention the fact that the family has gone through the house a few times, and they also sometimes point out when I am in the crowd, saying that buyers’ agents are drawn to the best properties,” says Ms Opie.

“It is all about scaring other interested buyers into bidding, it plays on that fear of missing out.”

Ms Opie has been to scores of auctions during her career, but admits to still being impressed with the pageantry at some of them.

“I mean, I was at an auction the other week and I wasn’t there for a client, but the auctioneer was so good even I wanted to bid,” she says.

Flaws? What flaws?

Every property has negatives, but a good agent will re-direct your attention to the positive aspects of a property, and most homes these days are “staged” with rented furniture to help project an image of the Perfect Home.

Ms Parker says some buyers get so caught up in the fantasy, they forget to look for less obvious pitfalls, such as a planned development next door that will block their view.

“Ask the agent outright if there is anything detrimental about a property that you should know about,” Ms Parker says.

“Depending on (the state or territory you are in), they may be obliged legally to tell you of any problems that they are aware of.”

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