Preamble
Some real estate agents have been reported making threats to owners offering their properties for sale without an estate agency, claiming “It is illegal to sell property without an agent.” Neither the Real Estate Institute of Australia, nor any Local Government, nor the Federal Government can dictate to property vendors how their properties are to be sold, although all three bodies would prefer if vendors used one of the real estate industry’s preferred sale methods because of vested interests: a large sale commission will be raised and shared by the selling agency and the Australian Tax Office through the personal and company tax schemes; the Federal Government can also claim 10% GST on commission (for the selling service ), with all GST passed on to Australian States and Territories. Property sellers looking to avoid paying unnecessary tax to the Federal Government and at the same time maximize their sale price will find the BHO sale method very appealing.
Every facet of the BHO sale method is aimed at helping the vendor achieve maximum possible gross and net sale price for minimum expenditure. BHO is superior in every way to sale methods favoured by the real estate industry
BHO guarantees that the vendor will achieve maximum possible sale price. For this reason, consumer advocates consider BHO to represent the ultimate professional method of selling property because no sale method advocated by the real estate industry, including auction, ‘by negotiation’ and ‘expressions of interest’, can guarantee maximum sale price.
BHO is also unique because the vendor pays no sale commission. In contrast, every sale method used by the real estate industry requires the vendor to pay an exceedingly high sale commission; most times the commission is calculated by applying a percentage to the sale price – commonly 2%, but it may be 1%, 1.7%, 2.5%, 3%, or 4%. In some countries such as the USA, real estate commissions can be 6% of the sale price.
The zero sale commission for BHO means the vendor is not ‘hit’ with a 10% GST surcharge on commission; such a surcharge is substantial, e.g., $1500 on a $15,000 commission, $2500 on a $25,000 commission, $5000 on a $50,000 commission, $10,000 on a $100,000 commission, etc. Not being required to pay any commission or the 10% surcharge means that vendors who use BHO will boost their net sale price significantly. Readers please note: service fees of professional personnel who assist in a BHO sale attract 10% GST.
As all interested buyers for a property being offered for sale by BHO must disclose their highest / best offer, the vendor is guaranteed to achieve maximum market price. Maximum sale price and minimum sale expenditure (without any commission being deducted or 10% GST on commission) means vendors using BHO will achieve a sale price that can be anywhere from $20,000 to $10 million higher than if an estate agency handled the sale.
Unlike an auction where deceit and nonsense often prevail, e.g., ‘dummy’ bids (non-existent bids called by the auctioneer), or ‘vendor bids’ ( an absurdity as no vendor would be looking to buy the property he / she is selling and pay stamp duty on the purchase ), BHO is a rational and completely transparent, ethical and fair method of sale.
A bonus feature of BHO is the fact that it makes Buyer’s Agents redundant because buyers have no use for a buyer’s agent in a BHO sale. This is a decided plus for vendors choosing BHO over one of the real estate industry’s sale methods where Buyer’s Agents often drive down the property’s sale price.
Unlike the real estate industry’s favoured sale methods, including auction, where vendors are always troubled and left wondering after the sale: “Did the successful buyer pay her / his absolute top price / price limit for my property?, vendors who use BHO never find themselves with such a troubling dilemma because they know maximum sale price has been achieved.
Also unlike the real estate industry’s favoured sale methods where vendors end up ‘donating’ significant amounts of their sale proceeds to the ATO / Commissioner of Taxation, vendors who use BHO derive immense satisfaction knowing they have TRUMPED THE TAX MAN LEGALLY by avoiding payment of $100’s, $1000’s, $10,000’s and even $100,000’s in indirect wealth tax.
Whichever way property owners look at BHO and compare it with the real estate industry’s sale methods, BHO is superior in every way to auction, ‘price negotiation’, ‘offers invited’, ‘expressions of interest’, ‘set date sale’, etc. Hence the advice given on the propertileaks Home Page: Buyer’s Highest Offer – Don’t give up your property without it – because properties sold by BHO are never shortsold, in contrast to properties sold through estate agencies which invariably sell for far less than their maximum value.
The only reason the real estate industry continues to secure property listings is because it has convinced property owners not to use ‘unprofessional’ do-it-yourself sale methods such as ‘Private Sale’ / For Sale By Owner. Professionalism and professional service are discussed in the BHO Document, including the professional qualifications, knowledge and experience of property experts who participate in the sale of property by BHO. The BHO sale method is without doubt the most professional of any property sale method and achieves what it claims:
GUARANTEED MAXIMUM MARKET PRICE for ZERO SALE COMMISSION, with selling costs minimised because the professionals who participate in the sale are not paid fees amounting to percentages of a property’s sale price. In stark contrast, the real estate industry cannot achieve maximum possible sale prices because by ‘negotiating’ and ‘brokering’, agents and their salespersons put their own vested interests FIRST and thereby compromise vendors’ financial interests. As a consequence, the industry consistently fails to deliver on its promise of ‘top prices all the time’. Vendors lose out by being significantly SHORTSOLD and are then ‘hit’ with an extremely high sale commission calculated as a percentage of the sale price.
Visitors to this propertileaks website have a choice: When selling property, they can put their trust in estate agents and their sales representatives, accept their advice and sell by one of the industry’s preferred sale methods, and in so doing, agree to pay the selling agency a commission calculated as a percentage of the property’s sale price – irrespective of time and effort involved – 4 hours or 40 hours. Alternatively, they can adopt a very cautious and non-committal approach, heed warnings on the propertileaks website about the way the industry goes about the sale of property and its vendor-disadvantaged sale methods, and defer making a final decision on how they will offer their property for sale until after they have read the Buyer’s Highest Offer Document.
The BHO Document contains full details of the way estate agencies have operated in Australia over the past 35 years. It includes complete auction data, not just selective reporting of “fantastic auction clearances of 70% to 85%” that are published sporadically in one of Australia’s newspapers.
No prospective seller of property will regret investing in the BHO Document as it represents a potential financial bonanza for vendors – see comments by Reviewer #10 under Document Reviews – Menu, Home Page. Readers of the Document, their children and grandchildren, will all benefit financially in decades to come by protecting their property wealth and maximising their investment capital. The $88 outlay can be expected to translate into the most rewarding property investment of such a small magnitude any property owner will make in their lifetime.
VENDORS’ REVENGE. Illegal collusive bidding reported in June 2014 by the Australian Financial Review will convince vendors to avoid auction and will also make buyer’s agents redundant. The BHO sale system is totally free of dishonest practices and is the ultimate salvation of property vendors whose properties are being UNDERSOLD at auction. Because BHO involves subcontracting each key step in the sale process to highly qualified professionals, vendors who use BHO have all the advantages but none of the disadvantages that characterize the real estate industry’s approach to selling property. BHO’s professionalism introduces a level of transparency that is lacking in sales conducted by estate agencies which allows buyer’s agents to drive down the sale price and disadvantage the vendor.