I didn’t say that!
I was reading the GoodWeekend Magazine while watching the gentle waves roll in on the quiet beach at Terrigal on the Central Coast on NSW, about 2 hours from where I live, and saw the heading ‘Taking on Trust’ in an article by Jane Cadzow called ‘Realty Bites’.
Now, anyone who knows me knows that the word ‘trust’ jumps off the page at me (in fact, lots of people send me links to articles and reports on anything about trust that they stumble upon). So I read the article.
Bill Malouf, one of Australia’s most successful real estate agents, selling top end properties, mostly in Sydney’s eastern suburbs, says ‘Next to used-car salesmen, we’re right on the bottom rung. ...And we’re at that level because of the dishonesty, a lack of credibility, a lack of trust, a lack of information.’
Interesting that he sees things this way himself. I thought it was just those of us who have had shocking experiences with Real Estate Agents that found that. Then, the last few surveys of 'Australia's Most Trusted Professions' by Readers Digest have found Real Estate Agents on the least trusted professions list, sitting at 42 out of 45 in 2011
I’ve reflected, in fact talked to a number of Real Estate Agents myself, to determine exactly what it is that leaves them sitting so low in the trustworthy ratings. Here’s what I know:
Mismatch of expectations:
The Real Estate Agent sits between a seller who wants the highest price for their property and a buyer who wants to get it for the lowest price possible.
While most people buying a house know that the agent is really representing the seller, at the end of the day, they don’t make their money until the property is sold. A slight conflict of interests arise.
Dishonesty by the seller
Every agent I’ve spoken to over the past few years has said that the seller most often will not disclose just exactly how much they expect to get for their property, or how much they need to pay out the loan. Why would they? If they were hoping to get $600,000 for their property, but they only had $400,000 to pay out on their loan, the agent may well settle for less in terms of an offer from a buyer in order to move the property off their books quickly.
Unrealistic expectations from the seller
I’ve heard this one plenty of times from agents. Often the seller is not in touch with the market, but has an expectation of what they want for their property that may be well of the mark. A good, trusting agent, will take the time to manage their expectations, to show them what is selling that is comparable to their property. Then agents have told me that, if they do that, and another agent comes along and says ‘Yeah, sure, I can get that price for you.’ Who are they going to go with? They’ll list with the agent who promises what they expect over an agent who is trying to tell them their property is not worth that much.
We all are drawn to people who promise us what we expect and need, so a trust relationship is formed with a not so trustworthy agent – interesting. Of course, what happens is that the agent who promised the world to get the listing then cannot sell the property for that price. The agent pressures them to sell at what is a more realistic price, and the seller is annoyed, or even angry, because they now feel betrayed and let down. The trust that was formed to get the deal is now broken by the reality of the market.
The key thing to note, and I know, because I’ve fallen into the same trap and been let down myself in the past, is that you will naturally be drawn to the agent that tells you what you want to hear. But do your homework – maybe the agent who is trying to manage your expectations is the one you should be listening to.
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