My query is very short and sweet –
In these times of perceived “value for money“, “integrity and honesty“, “quality assurance“, “consumer protection” etc etc etc – How do real estate agents continue to “get away with it“.
I’m sure that everyone has had a sorry story to tell about their experiences with RE agents
. As soon as you mention the words Real Estate Agent at a party, people begin to unravell their sad stories. It almost seems as though – as soon as anyone gets involved with them (both vendors and purchasers), the smooth process of changing the ownership of a property from one party to the another gets botched up, together with a lot of other things which happen along the way [
]. Just look through some of the archived comments made by users in this forum [!]. Surely it’s time for both State and Commonwealth Government’s to get serious with them. I know that it would be a different story if the government’s were trying to get the legal fraternity to toe the line (because most politicians are lawyers, and politicians do tend to make the rules) but surely they could curb many of the untoward practices carried out by these black suited “play” professionals [8D]. Afterall – It’s been going on for far too long.Also –
(1) why do they only represent the interests of the vendor, and not the purchaser as well [?] A true “agent” should look after both parties. That’s what an “agent” does. For example – In a building contract, the architect is an agent and he/she is obliged to not only represent the interests of the client but must also represent the builder’s interests i.e. simply – be fair on both parties.
(2) it’s silly having the REI judging the appropriateness of their own member’s actions because it’s like “throwing a shark into a shark pool“What’s happened over the past 100 years to remedy this situation [?] [
!]hi
i understand what you are saying but i dont think the integrity of the industry is going to change much.
people like jenman and those that follow his philosphies and system may make a dent but greed seems to be winning at this stage.
While times are booming in real estate the agents just get a listing and its sold its that quick generally money for jam.
But wait till the times get a bit leaner then we will give them hell those that were arrogant wouldn’t return our calls etc and had no time for us.
some property investment advisors and real estate agents best medicine
a thompson sub machine gun
im sure many feel like that
regards alf
Hi Johnny.
To answer one of your questions, a Real Estate Agent is an agent for the vendor. It is the vendor who pays their fee/commission out of their proceeds from the sale.
That said, professional agents, and there are some, will work to achieve a good outcome for both vendor and purchaser. However it is not possible to get the highest price for a vendor and the lowest price for a purchaser. The agent is obliged to get the highest price for the vendor, whose agent they are.
Yes there are a lot of shonky agents out there, as well as some very professional ones. Being a commission based income(and most vendors would rather that than a fee, which is paid irrespective of outcome)and a sellers market right now, some agents will overpromise to get a listing and then underdeliver.
It is also an occupation, where many people are ‘passing through’ and just give it a go. Unfortunately this can lead to a lack of professionalism from some due to ignorance or a desperate need for income.
This is being addressed by more stringent training requirements and more effective legislation, particularly in Queensland.
Incidentally, from my experience, Australia has one of the lowest commission rates, overseas 4-7% of the sale price is the norm.
My advice to buyers is when you find a good agent, and they are there, build a relationship with them. Remember that they are the seller’s agent not the buyers, although professional agents will work to achieve win-win outcomes. Good luck.
Cheers[
]If you think they are bad in Australia, the real estate agents are nothing compared to here in UK. The real estate system is not regulated here and there are some really dodgy workers that are ripping absolutely every buyer and seller off!
A lot of my friends who have sold in the past year were guzumped at least three times before a proper settlement actually went through. Oh, for those not in the KNOW about guzumping, it is when the buyer pulls out at the last moment and loses their deposit. THe only problem is that half the time the seller never sees that deposit again.
Just be glad we have certain regulations in Australia that can cover that sort of thing. I think the government here is trying to change it but then again, the government here is bl*&dy useless… DON’T get me started on the education system!!!!!!
Grrr.. all worked up now..
ANyway, my two pence worth…
STeph.Work smarter, not harder!.
oops, just remembered some more about guzumping, more so the correct definition is when the seller sells the house to someone then is offered more so they dump the original buyer for the higher offer. It is a crap way to work…
Work smarter, not harder!.
Hi Johnny,[
]The book “Confessions of a Real Estate Agent” will answer most of your questions.It is written by Terry Ryder and I prefer it to Jenmans book “Dont Sign Anything”.
The Real Estate Institutes main concern seems to center on the protection of their members.Regards
Bryce Inglis
[email protected]
http://www.ipal.com.auHi guys
that’s very true that they are working for the vendor (in theory). My experience is sadly they are working for themselves. Most have little regard for the vendor. as a buyer and seller i have found the above true. If they work for me as a buyer they know that one day i could be a seller, were the seller is often gone out of the area. i have many experiences where i as a buyer have seen the agent fail to get the best price but arather settle to keep me happy knowing that i’m back to by more properties. Other times i’ve had agent fail to get back to me when i’ve expressed interest in a property (the agent failed to call me back with the price of the property)instead the have sold it the first person who approached him. i’d not be happy if i was selling and another buyer wasn’t given the opportubity to put in an offer.
So ultimatily in my books the “Agents” (maybe they are from the Matrix) work for themselves and i deal with them in this way.
regards westanThanks alf, brianhc, cremin, noddies and westan for your comments in regard to “How do they get away with it?“.
I have one comment to make w.r.t. brianhc’s statement that “A Real Estate Agent is an agent for the vendor who pays their fee/commission out of the proceeds of the sale” and the “agent is obliged to get the highest price for the vendor, whose agent they are.“
In my original submission I said – “why do they only represent the interests of the vendor, and not the purchaser as well [?] A true “agent” does. For example – In a building contract, the architect is obliged to not only represent the interests of the client but must also represent the builder’s interests i.e. simply – be fair on both parties.”
My response to your comment is that –
(1) Architects are also paid by the client but they’re still obliged to both the client and builder.
(2) if real estate “agents” don’t really represent the interests of both parties, then why are they falsely calling themselves “agents” [?] – they should call themselves “vendor representatives” or some such other name. Using the word “agent” is missleading and missrepresenting the true meaning of the word.
(3) If real estate “agents” want to call themselves “agents” then why aren’t they required, by law, to actually perform that role [?]
(4) If real estate “agents” sincerely want the public to believe that they are true “professionals” (which is the rheoteric that they continually push via the media and by them wearing their obligatory black “power” suits [8D]) then why don’t they try and address some of these “real” issues and be “real” “real” estate agents [?].Regards – Johnny [
]Hi Johnny.
One of the reasons I know that there are professional RE agents, who do act with integrity, is because my wife is one. She is rapidly building an excellent reputation in the Redlands shire because of the fact that she is focused on the needs of the vendor and the purchaser, rather than her commission cheque.
In the final analysis this pays off for her as well, as more and more vendors and buyers choose to deal with her because of that integrity.As you sow, so shall you reap.
I am confused about your use of the word ‘agent’. In normal situations an agent works for a principal, whom they represent. Thus a company may have an agent in a particular location who represents them and distributes their goods. In the case of a RE agent they are an agent representing the vendor.
I have not used an architect here in Australia, but I have overseas. He designed my house, I paid his fees, and he acted as my agent in ensuring the builder delivered on the agreed specifications for the property, via progress meetings etc.
As a man of integrity he would point out if I required something that was outside of the agreed specs and would negotiate an agreed additional cost with the builder.Nevertheless he was at all times my agent – I paid him. It may be different here in Aus – although I cannot see how it would be, unless there is specific legislation.
Cheers[
]Hi Johnny,
I disagree with you on your definition of “agent”. At law, an agent has an obligation to act in the best interests of his or her principal (ie the seller). The agent does not have any legal obligation to look out for the buyer where it would be detrimental to the interests of the principal.
Of course, a professional and ethical agent would want to try to achieve a win-win situation for seller, buyer and agent.
That said, many agents appear to look after only themselves, and both seller and buyer get burnt.
Why do they get away with it? Because most of the people who deal with them are mums and dads and normal people like you and me, who don’t have the time, resources or inclination to pursue an agent through legal avenues (which is where it’ll hurt them the most – their hip pocket). Let’s face it – suing someone is expensive and emotionally draining. And it could drag on for years before you finally get your compensation. Most people would rather just count it a lesson learnt and walk away.
Cheers
M
]. Just look through some of the archived comments made by users in this forum 
!]. Surely it’s time for both State and Commonwealth Government’s to get serious with them. I know that it would be a different story if the government’s were trying to get the legal fraternity to toe the line (because most politicians are lawyers, and politicians do tend to make the rules) but surely they could curb many of the untoward practices carried out by these black suited “play” professionals [8D]. Afterall – It’s been going on for far too long.
]
]
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