LJHooker Buyers Agency - Thoughts please?

[Jamie_]

As many others have stated, from a first glance you'd assume that they will be peddling their own stock to effectively double dip on customers purchases...quite a smart strategy really...

They would have been aware of this image before venturing down the path but I would assume, and happy to be corrected, starting their own BA facilities would be a very low cost expansion for them as you'd expect they would be running through the normal branches facilities. Low start up cost, with minimal risk.

I've been hearing lots and lots of commercial radio advertising from a company which has positioned themselves as purely leasing agents. I think it's a smart move to position themselves like this, and even in their adverts push this point of difference which gives you the impression that what they are doing is unbiased and in your best interest as they don't sell.

http://www.theleasingco.com.au/content.aspx?page=About_TLC (obviously I have no affiliations with them, nor do I know what their rates are even)

When you see a branded selling agent wanting to become a BA you can't not think if they are honestly trying to help you find the best deal. It gives the same impression as a "Property Wealth Group" peddling their own development stock. It seems like too much of a conflict of interest.

Jamie_

 

[Mick C]

First hand experience. - LJ Hooker BA ( Wont name the suburb but it was in the eastern suburbs/ Sydney...)


I bought a place 3 weeks ago via a private inspection ( not open to the public type property) as i bought a place off this mob last month as well ..signed contract and LJ hooker does their normal spill...do you need finance etc...- of course i politely said no thanks

I tell the agent , that i'm still active in the market and to call me if anything comes up again + if they have any property on their books that they think the owner would sell im happy to snap it up with a flexible settlement if required etc...

( APPARENTLY that's an invite to sign up to their BA service....)

Few days later, i get a call from LJ hooker finance offering their BA service " executive first look at properties not on the market - ie property on their books/rent roll....." ( when did they ever charge for that!!!) - i politely declined....

This saddens me as i always build strong rapport with the agent i buy my properties off and once in a while they do offer me properties from their books ( not open to the public) ....Looks like it be a "paid" service now...no thanks.

 

[Xenia IM]

How are double commissions achieved legally? I didn't think agent licensing allowed for that. How did they get around it?

 

[Mick C]

How are double commissions achieved legally? I didn't think agent licensing allowed for that. How did they get around it?

Hahah welll obv you havn't seen how some of the off the plan BA works... * Cough * fill in blank* Fish

they sell ONLY OTP and pretty much their own stock ie own listing....

 

[Xenia IM]

Ahh yes!

So are they referring their BA clients to off the plan listings where they are acting as marketers for developers or their agency listings where they are getting a commission from a vendor - this is the part that becomes a conflict as unable to fulfil duty if being paid commissions from both sides!

 

[Scott No Mates]

Ahh yes!
- this is the part that becomes a conflict as unable to fulfil duty if being paid commissions from both sides!

3 separate agreements are put in place - 1 with ljh project marketing (for getting stock to market ) 2 BA deal & 3 with ljh franchisee.

The marketing gets full whack and one or the other gets the comms

 

[Peterw]

3 separate agreements are put in place - 1 with ljh project marketing (for getting stock to market ) 2 BA deal & 3 with ljh franchisee.

The marketing gets full whack and one or the other gets the comms

Scott, I could not stop laughing when I read this comment. Mate, have you thought of writing film scrips ...

I did think long and hard before I made my post. I appreciate some may see my comments as biased. However I can and only will speak for myself, however having meet many other business owners, who think the same way, I will add to my earlier comments.

I have lived, been schooled, and had my children brought up where I live and work. My reputation is important to me, not only for me, but also my family.

As a "branded" business, I have never been asked, to compromise my values for the so called benefit of the "brand". My business, which is not owned by the "brand" will survive or fail, on the level of customer service and customer satisfaction, that "we" deliver.

Yes, I have met people who have said that the did business the our "brand" in another location, and did not enjoy the experience, so we are off the radar. While that hurts me to think, that some one else in the group dropped the ball, and the "brand" now has an unhappy customer, on balance the reverse is my experience, when people walk in saying "xxx" helped them they are hoping we can do the same.

Who ever is taking on the business, and choosing to trade under the L J Hooker banner is no doubt a person like us all, and they will run the business upon a value basis that creates referrals, not unhappy customers. People will choose to use them or not choose to use them, based on their own experience.

I look forward to hearing some of those comments here, rather than perhaps prejudgements.

Anyway, my 2 cents, as I feel open and informed discussion is good for everyone.

 

[RPI]

PeterW is a gun agent and great business person with an excellent reputation in the local community.

He has a sufficient standing that he could trade under his own brand and do very well so to keep paying fees to LJH corporate to me speaks volumes.

 

[Scott No Mates]

Scott, I could not stop laughing when I read this comment. Mate, have you thought of writing film scrips ...
.

I must have forgotten to put the 'tongue-in-cheek' symbol up

As if any serious company with a strong heritage would try to come up with a convoluted scheme.

 

[NPB]

Scott, I could not stop laughing when I read this comment. Mate, have you thought of writing film scrips ...

I did think long and hard before I made my post. I appreciate some may see my comments as biased. However I can and only will speak for myself, however having meet many other business owners, who think the same way, I will add to my earlier comments.

I have lived, been schooled, and had my children brought up where I live and work. My reputation is important to me, not only for me, but also my family.

As a "branded" business, I have never been asked, to compromise my values for the so called benefit of the "brand". My business, which is not owned by the "brand" will survive or fail, on the level of customer service and customer satisfaction, that "we" deliver.

Yes, I have met people who have said that the did business the our "brand" in another location, and did not enjoy the experience, so we are off the radar. While that hurts me to think, that some one else in the group dropped the ball, and the "brand" now has an unhappy customer, on balance the reverse is my experience, when people walk in saying "xxx" helped them they are hoping we can do the same.

Who ever is taking on the business, and choosing to trade under the L J Hooker banner is no doubt a person like us all, and they will run the business upon a value basis that creates referrals, not unhappy customers. People will choose to use them or not choose to use them, based on their own experience.

I look forward to hearing some of those comments here, rather than perhaps prejudgements.

Anyway, my 2 cents, as I feel open and informed discussion is good for everyone.

Hi Peterw,

Interested to know how the issue of the BA buying/not buying LJhooker listed stock will work. Obviously it was addressed as a potential sticking point before the introduction of the BA service, what is the official policy?

Regards

NPB

 

[Peterw]

NPB, I have not worked as a Buyer Agent, however my understanding is, they get a "brief" from a buyer, and they then search the market place for a property that matches. We have regular contact with buyers agents, and we treat them as we treat a buyer, with service and respect.

Occasionally, we have a fellow LJH agent wish to do a conjunction with us, and as we work for the seller, we offer them service, not favours.

While some LJH agents will be marketing new developments, again all will be at arms length.

Hope that clarifies.

 

[RetireRich101]

Isn't this similar scenario as Aussie Mortgage Market becoming a Broker offering different bank panel, and yet their own Aussie Loan products...

 

[Peterw]

RR101, not quite the same. If Aussie have their own products, that they offer to clients as well as other financiers products, that is a bit different to the LJH Buyer Agent situation. In most cases, the product offered is owned by some one else, not the agent or the Franchisor. If the LJH Buyers agent approached me, then all I would do is offer the properties that I have listed from sellers to see if any one of those matched the criteria that their buyer was looking for. This is what we do with any Buyer agent enquiry that we receive.

From the Buyers Agents whose comments on this forum that I read, I get the impression that they are act as professional as they can, as well as with integrity. I believe they do their best to not only find the best property to suit the clients request, but then (from my personal experience) do all they can to get the property at the best price they can.

I can only assume that the owners of the LJH Buyers Agency business will be doing the same. Time will be the test.

 

[vtt]

As you all know, I am a buyers agent and have been since 2005. I am also currently President of REBAA - Australia's only national association body for independent buyers agents (with 52 firm members). Our industry is a growing one and especially in key capital cities such as Sydney, Melbourne, Brisbane and Perth.

This post is purely to seek opinions and comment from the public and, in particular, those most active in the real estate market and who better to ask than Somersoft members

I'd really like to know your thoughts on the latest buyers agency to open here in Sydney, and really do appreciate your time here in responding. I have included the link below. Please let me know:

1. Your initial thoughts/reactions when you read the name and site
2. Any other thoughts regarding this new buyers agency

FYI this exercise is simply an information-gathering one for my own curiosity and to genuinely gauge public opinion, much like market research. Naturally, I am far too close to the industry to be able to remain objective here.

With thanks in advance.

http://www.ljhookerbuyersagency.com.au/

Jacque they say perception is reality and my perception is that this is like a serpent setting up a store that sells apples (the fruit, not the electronics ). It doesn't sit right - I would personally never use them, even if everything is completely above board I would still always have that inkling.

Just MHO.

vtt

 

[Big Will]

To the OP, I wouldn't use them as I would perceive a COI being selling agents number first and buyers agents second.

When I worked as a REA if someone was looking at upsizing, downsizing, moving to a different suburb or for whatever reason, it is also in the agents best interest to find a property the vendor might be interested in. Obviously if it is one on your books great but even if it is on someone elses books guess who they are going to call next time they need to sell if you helped sell them their old house and found them their new house.

Also once they have found a house they are interested in they are more negotiable on pricing as they know roughly what they can get property B for and work back from there for what property A can sell for.

Where as if they don't have a property they are interested in they are wanting as much money as they can get and might hold out for longer.

NOTE this is not saying to do a lesser job or selling the property for cheaper but sometimes it is about getting them into the new house and 5-10k in grand schemes is not much..

 

[nomadic]

Sounds dodgy.

 

[esh]

I doubt that it will be only for LJ Hooker properties because that really would not make any business sense and defeats the purpose of a buyer agent.

I think its a good idea. You have brand recognition backing you up. at the end of the day, it doesn't matter what brand etc it is, if you do a good by people you will be successful

 

[BayView]

What happens when 2 buyers walk into the same agency, and both are wanting to buy the same property?

Does the agency say;

"Look, we are already working with someone on this property and cannot help you with it"

or do they say;

"Sure; sign up here please"