Pomster

we went to an auction on Saturday, looking to buy in Pascoe Vale, Vic.
Mr P agreed with an agent that we could pay 3k if we won, and balance of 10pct today.

Trawling around OFI beforehand, heard the head of agency (rhymes with " Chad Seal") ranting and shouting at his staff about agreeing 3k as a temp deposit, in front of all the viewers.
Then in the auction, he was rude to Mr P as he made a bid, then he started haranguing a bidder, who got up and left, and was generally an obnoxious idiot.

After the auction he came up to Mr P to say that we should walk around with a bank cheque for 10pct to be prepared.
Uggghhh? How do you know what 10pct would be? And how many times would I have drawn out 10pct to rebank? He said we should have a big enough cheque to cover 10pct or more or a cash top ....

He was so rude and aggressive, we walked away and have vowed never to deal with him again. Shame his agency has many of the properties in the area.
his staff are lovely, what an awful man to work for.

....and breathe......

JackTheLad

That sounds completely bizarre. The estate agent expects YOU to have a bank cheque ready, before the auction. Even the $3000 up front sounds wierd.

Are you sure it wasn't a timeshare salesman?

I'd go to one of this guys auctions just to shout out 'bollocks its not with that' at every bid.

JTL

Pomster

Hey- might be a great thing to do!

Swerv-o

I have heard of this here in Sydney. My friend used to work as a teller at the Commonwealth bank, and she says that there would often be a line of people queuing up for bank cheques on a Friday afternoon (before auction day) and then most of them would be back to pay it in again the following Monday. It costs money to raise the cheque , and also to cancel it, so it must be costing folks a lot of money, week in, week out.

It does beg the question of how much 10% is when the price is fluid and will be set at the auction. I guess that Auctioneers assume that people will arrange a bank cheque for 10% of their highest, maximum offer, and go along with that.

It is an antiquated way, but then, in my opinion, the only people that an auction benefits appears to be the auctioneer. If people stopped buying at auction, then it would be an end to the ridiculous practices that go on. I feel so lucky that I found a private sale - I was able to deal directly with the vendors, we were all happy, and nobody had the unpleasantness of dealing with an REA.


S

SamSi

The agent sounds like a tosser. But - if you want to vary the terms of contract you should get in writing from the vendor or their solicitor that a reduced deposit on the day is acceptable. And a personal cheque is fine to use for a deposit, you don't need to pay via bank cheque (assuming you have a cheque book that is, if you don't just ignore me!)

Pomster

And of course the money sits in the bank coffers for the time between raising and recashing.

Is some ways Australia has things sorted- with auctions it is still in 19th century...

spottydog

I organised a cheque book with my bank for auctions, just tell the agent not to bank the cheque till Tues so the money is in the account. Cheque book was free although each cheque costs you $1 when it is cashed (but still a lot cheaper than a draft)

Mepy

[QUOTE=(rhymes with " Chad Seal")
That sounds familiar, they were the ones who evicted us, without so much as a 'sorry'. It is a shame they have some many properties, because we're also trying to buy in Pas Vale and are certainly trying to avoid these people.

Pomster

[QUOTE=Mepy;8519729][QUOTE=(rhymes with " Chad Seal")
That sounds familiar, they were the ones who evicted us, without so much as a 'sorry'. It is a shame they have some many properties, because we're also trying to buy in Pas Vale and are certainly trying to avoid these people.[/QUOTE]

I spoke to my mate who has lived in PV for 20 plus years and her hubby was born there. Apparently the EA in question has a reputation well known to locals.

Hope you found a new rental easily enough.

Properties in PV are pretty hard to pin down unless you want brand new and postage stamp back yard.

Mepy

[QUOTE=Pomster;8519775] Well we're going to keep looking, good luck in your search too!

billabongbunyip

I have signed up to this guy newsletter:

http://www.jenman.com.au/

He promotes ethics in Australian real estate.

ozzieeagle

Be very wary of high school zoning in PV. Pascoe Vale Girls is fine, but everything else North of Bell st isn't and is crying out for Students. Whereas everything South of Bell St is probably full.

There is always Essendon/Keilor College if you get stuck.

Check out Oak Park around Vincent St/Deveraux St as well.

Both my older daughters were born at home in Sims St Pascoe Vale.

Pomster

Thanks for that...had not realised that Strathmore zone moves according to demand and demand is high...so looks like zone will get tighter and tighter. Amzing though that a house in the current zone is 100k more than one in the next street and 'outside"...pity the poor folk who buy at a premium and then see the zone moved...