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Real Estate Mistakes

Costly real estate mistakes for buyers and sellers

 

 

How long does it take to earn $10,000?
A lot longer than it takes to read this book

 

Real Estate Mistakes

This book shows how real estate consumers lose millions of dollars every year due to several simple but very costly mistakes.

It shows how sensible people, who carefully watch every dollar, throw thousands of dollars away when they buy or sell a home. According to the author, an average of $10,000 is lost on every home sale.

It is terrible. But it could easy be prevented.

These mistakes happen because most people have no experience with real estate. Some people only buy or sell a home once or twice in a lifetime. They do not have the knowledge to avoid the financial loss or emotional stress that comes with buying or selling a family home.

But real estate mistakes are easy to avoid. The secret is to know them before you buy or sell a home. This book contains information which has never before been available to homebuyers or sellers.

 

Neil Jenman's first book on how to avoid real estate mistakes. Since 2000, more than 200,000 copies have been published. This is the book most agents don't want you to read. It has been banned from being advertised in many papers where agents advertise. Get yourself a copy and find out why agents hate it and consumers love it.

 

Available in Bookshops

 

What do you know about Homesellers Protection Guarantee?

Homesellers! Don't Sign Anything unless the agent first signs a GUARANTEE which protects you. SEE HERE

 

visit Neil Jenman's web site http://www.jenman.com.au/

 

Please, read the introduction of Real Estate Mistakes

 

Introduction

 

This is a book for consumers about how to save thousands of dollars by avoiding real estate mistakes. It is not a book for real estate agents about how to make thousands of dollars. However, if agents help consumers to avoid mistakes, everyone wins – sellers, buyers and agents. So, perhaps this is a book for everyone.

 

Walter's Mistake
 

When Walter decided to sell his home in Sydney's Hills district in 1993, he made a big mistake.

He contacted a licensed agent, who was a member of the Real Estate Institute and whose office was part of a large real estate network. The sort of agent he could be forgiven for trusting on 'face-value'.

The agent sold Walter's home for $285,000 to a 'businessman' who was the father of one of the agent's salespeople. Walter's home was then resold for $420,000. The same day. Not a month later, or a year or two later, but the same day.

Walter was 'set-up'. He lost $135,000.

Most homesellers rarely lose as much as Walter. But, unlike most homesellers, Walter had a disadvantage. He suffered from Alzheimer's disease and lived in a nursing home. When the agent visited him and asked him to sign papers, he didn't ask the right questions.

Walter's son, who lived in Tasmania, complained to the real estate 'authorities'. Months later, he was informed that legal action against the agent would be unlikely to succeed because Walter's "physical and mental condition would not allow him to give evidence in the proceedings". Case closed.

 

Paul and Lyn's Mistake

 

When Paul and Lyn decided to buy a home in Adelaide's Hills district in 1999, they too made a big mistake.

Like Walter, they contacted a licensed agent, who was a member of the Real Estate Institute and whose office was part of a large network. The sort of agent they could be forgiven for trusting on 'face-value'.

Paul and Lyn saw a home for auction. They loved it. It was their dream home. The agent said "bidding will start around $250,000", but they were experienced enough to recognise this as a common auction 'bait' called 'under-quoting'.

Their biggest fear was that someone else would buy the home, so they asked the agent if they could buy it before the auction. The agent said "No, it must be sold by auction." As the auction day approached, Paul and Lyn made several calls to the agent; they were obviously excited about the home.

Five days before the auction, another agent told them that the home had been sold. They did not believe it. It must be a mistake. How could such a thing happen? They were devastated.

But when they learned the selling price, their devastation turned to anger. The home sold for almost $100,000 less than they were prepared to pay.

Paul and Lyn lost the home they loved and the home seller lost $100,000.

Had Paul and Lyn known what was ahead of them, they would not have lost their dream home. Their mistake came from lack of knowledge, which is the reason most consumers suffer emotional and financial trauma when they sell or buy a home. But the real cause of most mistakes is the systems and the ethics of real estate agents. This book will give you the knowledge to avoid these mistakes.

 

Real Estate Losses

I believe the average family loses ten thousand dollars when they sell their home. Across Australia, this amounts to tens of millions of dollars lost by home sellers every year.

Most home sellers are not even aware how much they are losing. As you will read, the 'cover-up' of mistakes made in the real estate industry extends all the way to the top.

 

But they begin with the real estate agents.

Three Agents

There are three types of real estate agents.

 

First, there are the honest, hard-working agents, the small-business owners who try hard to do what is best for sellers and buyers.

Unfortunately, most of these agents use systems which are riddled with mistakes which cost consumers thousands of dollars. They do not intend to deliberately cheat consumers, they just don't realise that what they have been doing for years – what they were taught – is wrong for consumers. Their systems are also wrong for them, as most of these agents make very little profit.

 

Second, there are the bad agents. They know exactly what they are doing to hurt consumers. They have got their deceit down to a fine art. As one of them said, "I have mastered the art of faking sincerity."

These agents are in real estate for two reasons - greed and ego. They will take your money and use it for their own ends. They will under-sell your home without thinking twice about how this affects your family. And everything they do, they will justify by saying it is perfectly legal.

These agents are highly unethical.

 

Third, there are the best agents. In this book, you will see how to recognise them – not just by their 'look', but by their actions – what they say and how they treat you.

The best agents have a totally different culture from the typical agents. They are so different that, when you meet one, you will think, "You are nothing like the other agents."

These are the agents who place ethics before profit. They place your interests ahead of their own. They will always do what is best for you.

Being Fair to Sellers and Buyers

One of the dilemmas with writing this book has been the issue of what is 'fair' to both sellers and buyers. As an agent, I was deeply conscious that my duty was to obtain the highest price for the people who 'employed' me: the homesellers. This did not mean that buyers were cheated.

The rule was simple: get the highest price possible for the sellers and find the best home possible for the buyers (within their financial limits).

I believe, from a financial point, the people who are hurt the most in real estate are the home sellers.

But family homes are not just about finances, they are about emotions; and also high stress levels.

Typical real estate systems hurt sellers and buyers, most of whom do not have the knowledge to protect themselves, either financially or emotionally. This book supplies the knowledge.

The first part covers 'Buying a Home' and the second part covers 'Selling a Home'. It is an 'open' book. Sure, it will show buyers how to take advantage of many systems which hurt sellers. But it will also show sellers how to protect themselves from these systems.

Advising Consumers

In 1999, we released a booklet outlining the 18 costly mistakes made by homesellers. 417,000 copies were distributed. From thousands of calls, there was not one complaint from consumers. But many agents complained. In fact, they complained so loudly that several agents who support The Jenman System are now banned from advertising the booklet in their local papers.

In response to agents who complain about our efforts to advise consumers, we make the following points.

 

• All profits from bookshop sales of Real Estate Mistakes will be donated to the 'Do the Five, Stay Alive' project, the brainchild of swimming coach Laurie Lawrence, whose efforts save the lives of many toddlers.

 

• We urge consumers to apply ethical tests on all agents – whether they are 'Jenman' agents or not. The purpose of this book is to protect real estate consumers, and to promote ethics in real estate.

 

• Many agents are ethical and competent. These are the only agents you should choose. Ethics in real estate comes first.

 

• We ask all agents to examine their systems from the point of view of the consumer. If you offer a better service than The Jenman System, you have nothing to complain about. Focus on consumers, not on us.

 

• If any agents tell you they use The Jenman System, please check this on our FREE CALL number 1800 1800 18.

 

APPROVED Jenman agents

From 2000, agents who use The Jenman System - and who meet strict consumer service standards – will begin to be known as Jenman APPROVED.

It will take an agent many months, even years, to qualify for the APPROVED status. Changing from one system to another is never easy.

However, whether an agent is Jenman APPROVED or whether the agent merely supports portions of The Jenman System - or has nothing to do with Jenman, your approval is the only thing that matters. You choose the agent who can do the best for you.

The Ethics Battle

We are often asked by agents: "How can you say such damaging things about the real estate industry?"

Our reply is simple: "How can agents not say such things?" How can the real estate industry continue to use systems which hurt hundreds of thousands of Australian consumers? That is the real question.

We love the real estate industry. But we do not love the standards of many agents and their systems. The home sellers and buyers of Australia deserve better.

 

And that is why this book has been written.

Neil Jenman -
visit Neil Jenman's web site http://www.jenman.com.au/

 

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