Why do Agents do this stuff...

[nortywon]

I am an agent (have been for 13 years)...I also have a Psychology degree and I STILL can't work it out!!!
Why do agents do the crazy things they do??? The silly things that sully our reputation and tar us all with the same brush....

Having just had a couple of terrible experiences myself (more about that in a minute) I was reading Zhouses thread "Strange thing with Purchase" and I thought I would throw it open for discussion to you all....
Probably controversial but I am keen to know your thoughts as you guys deal with agents on a regular basis...

First my experiences..
1) Block of land advertised at very low price. Pic showed water views. Nearly made an offer on the spot, but to keep the wife happy we jumped in the car to have a look. The block was heavily treed (unlike the cleared one in the pic), had a double storey house opposite and hence no water views (unlike the pic)....turns out the pic was of a cleared block next door which is not for sale! Thank goodness my wife wanted to see it first!
2) Mother in Law is visiting at the moment - wants to buy IP near us. Went to Open Home - house going to Auction. We discussed with agent making offers prior etc. Two days later it has sold to someone else for less than MIL decided she was prepared to pay - and the agent hadn't even called her back to see if she wanted to make an offer...is he not supposed to act for client to get best price??? Should this have gone to auction seeing how there was at least 2 interested parties????

Over to you...WHY DO AGENTS DO THIS????????? How can we stop it and more importantly why are they allowed to continue in our profession? What is the answer - the regulatory bodies don't seem to know....

 

[Aaron Sice]

you can't do anything because generally you're dealing with people who have no mechanical / vehicle nouse so they sell houses instead....

 

[twobobsworth]

I look forward to the time when real estate agents are no longer required. In most instances they are simply not necessary and add very little value.

You can't stop their behaviour, as much of it is simply human nature. We will just have to deal with the beast for the time being.

 

[Rob Williams]

I look forward to the time when real estate agents are no longer required. In most instances they are simply not necessary and add very little value.

I agree totally. I can't think, off the top of my head, of another industry where someone can earn so much by adding so little value to the process.

 

[weg]

...is he not supposed to act for client to get best price???

First and foremost the agent is looking after themselves, then the vendor, and if it means $$ for minimum leg work then the unethical and/or lazy ones will settle for whatever they think you will accept.

 

[lizzie]

First and foremost the agent is looking after themselves, then the vendor, and if it means $$ for minimum leg work then the unethical and/or lazy ones will settle for whatever they think you will accept.

exactly - why would they spend days back and forthing between two interested parties for a few extra thousand for the vendor.

the agent would only get another $20-30 per thousand in his/her pocket for the trouble. wouldn't even cover the mobile phone calls.

 

[Aimjoy]

Many Buyers do not realise that a Real Estate Agent is legally bound to represent the Seller (vendor) in a real property transaction. Their purpose is to obtain the highest possible price in the quickest possible time for the Seller.

How then can a Selling Agent, provide you as a Buyer, with independent advice? Surely this would represent a clear conflict of interest?

At the end of the day the REA has to get the buyer up in price and their vendor down in price. The nett effect is that the REA (as Lizzie says) is only working for his own comms.

 

[Dazz]

I look forward...(edit - or backwards) to the time when real estate agents are no longer required.

Agreed.

I long for the days back in the 1920's when the Owner would put an ad in the paper, and at the bottom of it, write - "If interested, write to PO Box ..... for either more information or simply submit your best offer. Closing date for submissions will be by .....".

Job done. No podcasts, no surfing, no fly-bys. Just people interested in buying your real estate....and the onus on them is to do their homework.

 

[LynnH]

First and foremost the agent is looking after themselves, then the vendor, and if it means $$ for minimum leg work then the unethical and/or lazy ones will settle for whatever they think you will accept.

One would have thought that an agent would have one eye to the future, too - or am I expecting a little too much?

When I've dealt with the "me first" types of REAs in the past (fortunately relatively infrequently), I make sure that I don't deal with them again - and let 'em know it afterwards, too! They get paid a decent amount of commission for which vendors expect a decent service - no service, no future business!

Cheers
LynnH

 

[nortywon]

Wow - I certainly wasn't expecting anyone to jump to the defence of the agents but there is some serious negativity here! Has no-one had a good experience with an REA? Why is it then, that all the losers and dead beats who only want to do the best for themselves end up in my industry - thus making it even harder for those of us that do actually care about getting the best price for our clients and doing the right thing by people.

 

[Mart]

First my experiences..
1) Block of land advertised at very low price. Pic showed water views. Nearly made an offer on the spot, but to keep the wife happy we jumped in the car to have a look. The block was heavily treed (unlike the cleared one in the pic), had a double storey house opposite and hence no water views (unlike the pic)....turns out the pic was of a cleared block next door which is not for sale! Thank goodness my wife wanted to see it first!

Is that not a breach of PAMD 573c False representation and other misleading conduct in relation to residential property.

Personally, if that's the case I'd report the agent. I'm also an agent and don't like to be tarred with the same brush either

2) Mother in Law is visiting at the moment - wants to buy IP near us. Went to Open Home - house going to Auction. We discussed with agent making offers prior etc. Two days later it has sold to someone else for less than MIL decided she was prepared to pay - and the agent hadn't even called her back to see if she wanted to make an offer...is he not supposed to act for client to get best price??? Should this have gone to auction seeing how there was at least 2 interested parties????

I had the same thing happen to me before I became an agent. Once again it may seem harsh but I'd send the owners a little letter informing them of the agents laziness.

Over to you...WHY DO AGENTS DO THIS????????? How can we stop it and more importantly why are they allowed to continue in our profession? What is the answer - the regulatory bodies don't seem to know....

They need to be reported, kick the *****s out of the industry, and clean the dam thing up!

 

[nortywon]

One would have thought that an agent would have one eye to the future, too - or am I expecting a little too much?

Exactly LynnH...but this should be the least of your expectations! The issue is very few agents see RE as a career but as a short term job in which they think they can get rich quick.

 

[LynnH]

nortywon

(Re your post #10)

On the contrary, I have had some good experiences with REAs (I did say in my post that I'd come across the 'me first' types relatively infrequently). There are several REAs with whom I have on-going dealings - and who I am happy to refer on to friends/colleagues.

And it's not only REAs who I refuse to deal with if they offer bad service - all businesses get the same treatment!! (I also refuse to buy shares in those companies, too! )

Cheers
LynnH

 

[nortywon]

I agree Mart but our regulatory body are toothless tigers unforntunately...I share your sentiments and i am all for stricter regulations!
As far as you earlier comments go...you are spot on and I am reporting both issues to the REIQ, OFT and the vendor of the auction home if i can get hold of them!

 

[nortywon]

Glad to hear it LynnH!

 

[Mart]

Agreed.

I long for the days back in the 1920's when the Owner would put an ad in the paper, and at the bottom of it, write - "If interested, write to PO Box ..... for either more information or simply submit your best offer. Closing date for submissions will be by .....".

Job done. No podcasts, no surfing, no fly-bys. Just people interested in buying your real estate....and the onus on them is to do their homework.

I started an agency that provides all the necessary documentation, 4 sale sign etc..... plus space on RE.com.au at an upfront fee. If they think they can do it then I'm happy to give them the opportunity. We also offer a full service flat fee for the ones who may find it to daunting or don't have the time.

People need options!

 

[weg]

One would have thought that an agent would have one eye to the future, too - or am I expecting a little too much?

I think it depends on what works for the particular REA.

I know of one Adelaide agent that works by the philosophy that vendor is king.

She'll return calls after sales, remains in constant contact during the sales process and more than appears to be a genuine person.... in other words is a great REA that has a lot of return vendors and word of mouth recommendations.

But she also sells at the upper end of the market where this approach is probably expected by the more astute vendor.

 

[Simon]

I did the entry course for real estate agent accreditation at NSW TAFE a couple of years ago. Run by a retired real estate agent.

It was institutionalised cheating. My assignments that I emailed to a struggling mate were photocopied and handed in by half the course with my name scribbled out and their names pencilled in.

All exams were done as a class and read out by the instructor with him dictating the correct answers.

Everyone got a distinction cos everyone got 100% in everything.

Some of the students were almost incapable of understanding what was written on the paper in front of them. Most were half wits at best. Two that I got to know were full on crooks.

I complained and the teacher denied it all to the TAFE Management, they were unwilling to take it further even though I said I would help in any way possible.

NSW TAFE told me that there was no cheating but they were happy to refund my fee as I seemed dissatisfied. Anything to keep me quiet.

When prospective agents are taught that cheating is OK and the industry accreditation is a sham then no wonder they are happy to do whatever they want to ensure a comission.

We all have similar stories of unscrupulous or lazy agents. Just last week I spent three days trying to get through a property only to find out it went under contract on the fourth day. Wonder what the vendor would say if he knew a keen buyer was frustrated at not getting through - esp when the agent was probably telling him the market was dead and the current offer was the only one on the table and he should take it.....

 

[allmine]

We have just looked at 30 plus potential PPoR's.
We had an offer on one but sadly it failed the building and pest badly.
Off we went again for another round of looking. Happy to say now we got one.
Out of the 20 plus REA's we delt with, 5 are worth feeding, rest wern't up for the task I felt. Tempeted to mail a letter to the vendors to let them know also.

I found the best way to make them talk straight is to let it be known that you found info about this property on the web, either RP Data or "OnTheHouse.com.au". Most of them didn't like hearing that.
Then again, one agent we dealt with used it to his advantage, basicly open the house up, said I trust you've checked it out, so I'll leave you be while I make some calls I need to catch up on.
To be fair, one agent did want precise details of other agents who were not doing there job properly, but I didn't want to be a Dobber, so refrained from giving details.
Got the building and pest tommorro on the new one we have got a contract on, fingers crossed!!!!!!

 

[TheAnalyst]

I look forward to the time when real estate agents are no longer required. In most instances they are simply not necessary and add very little value.

You can't stop their behaviour, as much of it is simply human nature. We will just have to deal with the beast for the time being.

It may never happen, unfortunately.

The agents learn the bad things quickly. The agents in WA used to pay for marketing, - no sale, no fee. But, now, all the agents ask for up front marketing fee 500-1000 in WA. I asked them why? they said now it was an industry stand in WA.

Just interviewed a girl and she said she made 200k last year (home money) - not total sales.