Who Manipulates the Value of the Queensland Property Market?
Who Manipulates the Value of the Queensland Property Market?
- Property Valuers?
- Mortgage Insurers?
- The Banks?
- All three of them!!
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Selling a property in Queensland with no advertising, marketing or agent fees??
In Queensland, sales commissions averages 3% plus GST and there are also selling costs which must be taken into consideration.
Most sellers of suburban residential real estate are charged an advertising cost before sale.
Today, a normal budget for a sales campaign (including commission, advertising and marketing costs) of a residential property should be 5% to 6% of the likely sale price.
For example, the commission on a $500,000 sale @ 3% is about $15,000. On top of this, it is not hard to spend another $15,000 on marketing, advertising, and all the other costs of the sale.
But Valuers on instructions from the Mortgage Insurers and Banks are deducting from their valuations the amount an agent is paid, plus the advertising and marketing costs in excess of a sale fee of 5% to 6%.
In other words, properties in Queensland are being devalued by the amount sellers are paying to market and sell their properties.
Valuers are not taking into consideration the normal costs of a sale, they apparently believe a property should sell without marketing and advertising fees, and they obviously think real estate agents should work for free?
The bottom line is that if a person wants to spend $1 Dollar or $1-Million Dollars on marketing their property, it should have no relationship to the value of that property. But unfortunately in Queensland, it does and this is quite archaic indeed.
You cannot sell a secret, so you must pay for advertise and market a property, and Professional Agents do not work for free!