By Justin Vallejo and Clementine Cuneo October 18, 2008 09:14am
GREEDY home sellers are taking properties off the market and re-listing them at higher prices in an attempt to cash-in off first home buyers.
Real estate industry insiders have told The Daily Telegraph of an almost immediate move to increase prices, in one case up to $30,000.
There have also been moves to change the sale from private treaty to auction after the first home owners grant doubled.
The country's largest real estate agencies meanwhile expect a "re-branding" campaign and a change in marketing to target first home buyers and investors at auctions in wake of the $7000 grant increase.
"Vendors are already asking to re-list their property and if we tell them it's not an achievable amount, they take their business to a different real estate agent with promises of greatly inflated prices," a real estate agent, who did not want to be named, said.
"It worked in 2001 and people have long memories."
Sydney experienced an unprecedented boom in property prices in 2001 when John Howard increased the grant from $7000 to $14,000.
Chad Crompton, of the Property Buyers Agents Association, has seen a number of properties removed from sale then almost immediately re-listed for auction in an attempt to sell at much higher prices.
"Anything that stimulates interest back into the market does create the greed factor again," Mr Crompton said.
"Some will be lucky and get a good sale but the majority of them will put their property on the market for a higher price and actually end up getting less for it in the long run because consumers out there are not silly, they are well educated and well informed."
For LJ Hooker managing director Warren McCarthy and Raine and Horne chief executive Angus Raine, it makes sense for vendors to move their homes from a private treaty sale and into auctions.
Mr McCarthy said the time limit of eight months and a cap of 150,000 grant packages could create a sense of urgency among first home buyers not wanting to miss out on the increased grant.
"That bit of competition might drive the price a bit north which is healthy for those vendors," he said.
Joshua Smith and Sally Pitkin, both 23, said vendors trying to cash in on first home buyers were opportunistic.
The Newcastle couple hope to buy their first home within six months.
