Do agents really believe "buyers are liars and vendors are cheats"? Edwin Almeida
The first lesson I was taught by our real estate office licensee, when I was first inducted was: "buyers are liars and vendors are cheats". A mantra, which may still be chanted in the offices of many agencies.
After the events of Saturday's "Valentines Day Auction" campaign, a campaign that presented a property with a $1 (dollar) reserve, my first lesson came to mind. It is a lesson that echoed in our real estate office at the time. Our licensee in charge, would hum, sing and yell out loud; “buyers are liars and vendors are cheats”.
As for my position, noted and voiced in a recent industry debate held in North Sydney, I hold strong to the belief that buyers are not liars but are guided by the professional real estate agents (REAs).
As a matter of fact, I believe that buyers are cautious, confident and confused. Cautious, because for some, it is a first time experience. Confident, as other buyers have the experience and know how to play the game. Confused, may be attributed to the majority of buyers and all because of the plethora of misleading and deceptive advertising and marketing campaigns published.
Buyers in fact I believe, act on information given by the REAs. Likewise, vendors are also guided by the REAs. After all, it is the REAs reputation and licence that is placed on the chopping block, if there is any breach of the regulations.
In the case of the Valentines Day auction, the professional is the real estate agent selling the home. A person with the same duty of care to, and under law, to advice the vendor and hold firmly to stipulated regulations governing our industry.
So who is trying to fool whom? Who is the liar and the cheat, exactly?
In all seriousness, do agents and agencies truly believe the premise that buyers are in fact liars? As incredulous as it sounds, some REAs apparently still do. Some even approach their day to day work with this notion in mind.
Do REAs also consider vendors to be cheats? Well, it is after all the duty of the agent to guide through what may well be pitfalls in cowboy styled advertising and disclose any material fact.
However, based on the Valentines Day auction campaign; would it be a fair call, to say that some agents hold little regard for the general public? Perhaps, they hold less regard of their licenses and their duty. A duty of care, to buyers and vendors, under the industry licence.
Now place yourself in the position of being a buyer of real estate/properties, or a seller of real estate/properties. Basically, you are being considered a liar and or a cheat by the real estate industry. Isn’t this a sweet cup of coffee? The beans have been scorched; the taste is bitter as that grumpy old relative in every family.
To date, the mantra puzzles me and I hope it puzzles you as well. Next time you approach a REA, do consider the following before engaging their services, as these are handy tips to best judge what and how an agent can benefit you.
- Other than a low fee, what else does an agent bring to the table to assist you with attaining the best price to your home?
- Is the agent-agency promoting one form of sale only and if so, do ask, why?
- If the agent-agency believes so much on a 'specific marketing campaign', will they be prepared to shoulder the bill?
- Always ask for trust account receipts when being asked to contribute to 'vendor paid advertising'.
If you are approaching a REA as a buyer, then keep these points in mind.
- Place any offer you want to give, in writing and ask for a written response.
- When you are given a price guide, ask the agent to substantiate the guide given.
- Don’t fully rely on the REA’s information. Do your own research and if required call on the services of other professionals. Valuers, buyers advocates and pest and building inspectors are a few that come to mind.
- Remember that the REA believes you are a cheat, therefore, play the game and stay one step ahead.
EDWIN ALMEIDA is licensee in charge of Just Think Real Estate.
He is also the creator of Oz Real Estate.TV and a presenter for propertyinvestingvault.com.
