Full Disclosure

Hi,

The reason I joined this site today is to find out more about the real story behind WA and I guess Australia wide property investment companies/Buyers Agents/Real Estate agents/seminars and the almost to cosy relationships behind them.

What i didn't know is that in a transaction where a Buyers Agent/Investment property seminar conductor introduces you to a property as a buyer there can be a whole web of fees and payments that are involved in the transaction which is both extensive and expensive. 

Say this is the situation a developer has a number of properties to sell in a slow market so they approach a marketing company for assistance and pay a fee per property for marketing.  A seminar company then refers/introduces buyers to the property charging the buyers a finders fee for locating the property as well as a fee for attending the seminar.  

So who's absorbing all of these fees?  Well the seller will just tack the marketing fee onto the price of the original property say $10,000+ and the buyer is paying a finders fee to the agent say $5,000+ so purchasing a property in such a situation is adding $15,000+ to the sale price.  Little wonder these properties struggle to value up. 

But what i don't understand and now i regret for myselt is that if you've got the time to go to a seminar surely you also have the time to pick-up a few books and do the leg work for yourself.  If not and you're blissfully unaware of the premium to be paid then is it little wonder that these sorts of property investing money funnels are so successful at moving properties that the market can't.

Ask the tough questions and seek full disclosure. 

Is the seller paying a marketing fee?

Are you paying a finders fee? 

For $15,000 couldn't you afford to take some time out to grab a cheap airfare and make a fully informed decision for yourself?

Are you helping me or just out to make money?  It all seems so obvious when its too late!