First and foremost, what you are about to read is not an Agent bashing exercise.
Yes, unfortunately we (yes, I have been an Agent for the last 14 years) rate somewhere at the lower end of the list of the Nation’s most trusted professions, usually around or between used car sales people and lawyers.
However, I want to dispel some myths and share some truths that Agents don’t want you to know!
Our report, The Eight Biggest Myths of Real Estate, wasn’t written to send Agents further down that list of trusted professionals. It was written to clarify quite a few misconceptions around the aura and perceived monopoly Agents have developed over the last few decades, identifying them as the only choice when the time comes to sell a piece of real estate.
But! (and the ‘but’ is slowly growing) things are changing.
Sure, the ‘Sell your own home’ segment of the Australian property sales market is still a small portion – we estimate at approx. 5% of the total sales market.
However when you look at the USA & Canada, with over 20% or more each; and even New Zealand, with over 10%, it seems this is a market that could grow quite quickly over the next 3-5 years.
The model of bypassing the ‘middle man’ by use of the of the internet and powers of technology is now firmly entrenched in the wider vernacular – disruption!
Think Uber, Airbnb and Kogan.
They have all made massive inroads into (former) industry giants’ markets and consumers are getting on board in droves.
Will the traditional Real Estate industry be one of those ‘giants’ affected?
We will know pretty soon.
So, with these huge shifts in consumer sentiment and habits taking place before our eyes, what is it that Real Estate Agents, in general, want to keep under wraps so you will consider them before taking control and selling your home or property?
- Buyers follow property not agents. 95% of buyers will find their next property online, not in an Agent’s office window.
- No Agent owns a buyer. Trying to control buyers is like trying to herd cats. Buyers are trawling the internet looking for their next property and will talk to the Agent, or entity who represents the property or properties that draw their attention.
- No Agent has an exclusive database. The ‘database of buyers’ that an Agent tells you they have are on most of the other local Agent’s databases as well.
- Agents focus on listings, not buyers. They spend most of their time prospecting for new listings. In between times they talk to buyers who have responded to the advertising on the Agent’s current listings.
- Many agents are still ‘buying’ listings. Offering inflated appraisal prices to home sellers in order to win the listing. This leads to one of the first and most destructive breakdowns in the Agent/Seller relationship and loss of trust.
- Many Agents’ buyer qualification and negotiation skills are not up to scratch. This is a whole subject on its own.
- Many Agents fail to extract and supply sellers with meaningful feedback. Sadly, many Agents lack the skills in drawing relevant feedback from potential buyers then passing it on ‘warts and all’, with empathy, to home sellers.
There is much more I could share with you in regards to the failings of some of the Agents I have competed against and worked with. Some of the stories home sellers from all over Australia have shared with me over the last three years regarding omission, poor service and general incompetence from Agents sometimes leaves me speechless.
I am glad to say that this is not the picture that depicts the entire industry. There are a solid number of ethical, hard-working, smart and client-focused Agents Australia wide.
A high proportion of sellers are still drawn to the traditional Agent method of sale, but I can say hand on heart that the winds of change are beginning to blow and more and more sellers are understanding that the middle man can be bypassed, and direct access to genuine buyers is only the click of a mouse away.
