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5 Signs You're Dealing With A Private Buying Shark

Tuesday 12 April 2022, 1:50PM
By Your Property Solutions
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Private House Buyers NZ 

Just preying on those who are desperate?

 

In this guide, you’ll dive a bit deeper into the nasty world of private buying sharks. So when it comes to selling your house privately in New Zealand you’ll have no problems sniffing them out.

 

It’s no secret that the odd As Is Where Is private house buyer has been known to align with the stereotypical car salesmen … or the classic loan shark

 

Seen as filthy vultures preying on the vulnerable in the community

 

But is this really the case? 

And why has the industry (private house buyers) come to bear a bad reputation? 

 

Let's take every car salesperson in your town or city into consideration. 

Now how many out of all of these salespeople do you think will fit the typical stereotype?

Maybe a handful? (if any) 

 

In any industry, whether it's cars, loans, or real estate, the majority of that working class is willing to help you and to do the right thing. 

 

Sadly, In those same industries, you're going to have the odd rotten egg who does business in their wicked ways

 

And who do you think enjoys nothing more than exposing these minorities in the industries? 

 

You guessed it… The media

 

 

Tell-tale signs that you're dealing with a private house buying shark

 

Most of the operators deal in the “Off Market” Market, that is, all real estate transactions are conducted privately without an agent, so it’s a fair assumption you will find them there.

 

It’s important to note that private buyers are not governed by the same rules and regulations the licensed real estate agents are under the “Real Estate Agents Authority Code of Conduct”. 

 

Whereby a regulated platform oversees all dealings and handles complaints, minor and major breaches of the code. 

 

A rather ‘shaded’ territory for them to gather and do business. 

 

But what if you do have a complaint, where can you go? 

 

- Ministry of Justice

- Commerce commission

- IRD 

- Citizens Advice bureau 

- Police

-The Media 

 

As you look for private house buyers in NZ you'll come across multiple websites that have no faces or names to themselves, their staff & employees, generally there are a couple of reasons for this that you didn’t know about... 

 

  1. They may have links to other ‘competing’ websites in an attempt to monopolize and corner the market
  2. They may not want to tarnish their name or credibility by being associated with bad dealings and unhappy customers
  3. They may be associated with licensed Real Estate Agencies looking to use the website as a lead generator for sellers and listings

 

You may be thinking, well easy for you to say about your competitors �‍♂️

 

The truth is I used to work for one of my competitors and although they didn’t employ these practices I eventually came to learn the dishonest tactics of their direct competitors 

 

The good news is that most of them aren't around anymore as they just move on to the next best thing as the As-Is market, particularly in Christchurch has begun to dry up 

 

Some Tell-tale signs to be mindful of

 

- Aggressive take it or leave it terms 

- Offensive negative chat about the property and their competition

- Extreme and unfair low ball offers

- Zero interest or empathy towards your situation or circumstance

- Exclude certain clauses that give the seller the opportunity to have it checked by their solicitor

 

 

And who do these private buyers prey on? 

 

- Sellers in extreme time-sensitive situations, Job loss or transfer/Medical, or health reasons, forced to sell situations

- Sellers that have had previous offers crash and fall over, on market or off-market 

- When sellers decline the original offer but go back to the buyer to renegotiate later 

- Homeowners who are surrounded by development and live in areas with high gentrification

- Elderly people that don’t quite understand the ins and outs of their property sale

 

 

You might be thinking “jeepers'' selling my house privately sounds like a one-way ticket to the biggest mistake you’ve ever made…


 

Until next time

 

Yours truly,

 

Billy  

 

Your Property Solutions

www.yourpropertysolutions.co.nz