Real estate group raises concern on banks giving property advice
The Real Estate Institute of Australia (REIA) has warned against top banks including real estate advice as part of their services
One example cited is a Westpac advertisement with the headline, 'How much is too much for that property?' The advertisement says that property buyers should get in touch with a Westpac Bank Manager who, 'has the expertise to guide you through your property decisions.'
"This offering should be of great concern to property buyers, sellers and investors," said REIA President David Airey
Banks such as Westpac, CBA and NAB have teamed up property data providers to access data that does not cater to a specific property."Seeking property advice from banks should be approached with caution - figures from independent providers of national real estate data merely provide sales statistics, rather than an accurate assessment of a property based on its attributes, that a real estate professional can provide," he said.
"Remote valuations with no physical inspection, nor local knowledge will lead to generalized and unreliable reports, possibly leading buyers into making unrealistic offers - it is important that consumers realize the importance of having a property appraised by a qualified real estate professional," added Airey. "This excursion by banks into real estate should send warning signals to real estate regulators in all states and territories across Australia."
People wanting to invest in property are urged to consult with qualified property professionals before deciding to buy.