Login
iscover
Having an agent on each side of the property transaction would slash the number of consumer complaints against agents and enhance the profession’s standing in the community, the head of a major real estate group has said.
Tony Brasier, managing director and chairman at PRDnationwide, said many complaints against industry professionals stem from buyers failing to understand who the agent is representing in the property transaction.
“In my experience, any problems that arise through a transaction, and where an agent gets a bad reputation as a result, is because a purchaser believes that the agent is acting for [them] when in fact they’re acting for the person who is paying them, which is the vendor,” he told Real Estate Business.
“I’m all for buyers’ advocates, and I think that’s a great trend, and I think if there was an agent on both sides of every transaction you’d have … less issues. I think the standard of the profession would go up dramatically because you know who is representing you, and they’re representing you in the best interests, and I think the whole professionalism of the industry would rise. There would be less disputes.”
Rich Harvey, managing director at propertybuyer.com.au and the NSW spokesperson for the Real Estate Buyers Agent Association of Australia (REBAA), agreed that buyers’ agents were important in the property transaction process.
He added that the majority of real estate agents he dealt with could also see the benefits of dealing with a buyers’ agent.
“Generally, 99 per cent of agents love us as we present a qualified buyer to the transaction,” he told Real Estate Business. He said while an agent may have a higher offer from another potential buyer, the client of a buyers’ agent, having been properly vetted, would be much more likely to proceed with the transaction.
Mr Harvey, who is also a member of the Real Estate Institute of NSW (REINSW) and has 11 years experience in the property buyer industry, said consumers needed more education around what a buyers’ agent does. “We’re trying to get some fact sheets [about buyers’ agents] put up on the NSW Fair Trading website.”
Mr Brasier said consumers expected to pay professionals for their services, so using a buyers’ agent should be viewed no differently.
“If you’re buying shares on the stock market you are actually paying a broker to buy them,” he said. “If you’re getting an accountant or solicitor to act for you in any business transaction you’re paying them to do it. Why wouldn’t you pay an agent representing you in the purchase of a property a reasonable fee to buy you that property. To me, they should be saving you the money you’re paying them.”
Moreover, he added, it was common in other Western markets for buyers to use agents to represent their interests.
“That’s the way it works in the UK predominantly, [and] there’s a big trend towards that in the US. It works in other parts of the world, I think it’s got to come in here.”
Mr Brasier, the former chairman and CEO of Colliers International in Australia, added that the commercial real estate industry already had this system in place.
“In the commercial sector, tenant representation and buyers’ agents have been about for a long time now, and they’re actually growing [in number]. There wouldn’t be too many commercial leasing transactions now, of any size, that don’t involve a tenant representative on one side and an agent on the landlord’s side, and really, that’s the way it should go for residential I think.”
Mr Harvey added that buyers' agents, while requiring a licence to operate in NSW, should be asked to complete the same number of licensing modules that an agent otherwise requires. At the moment a buyers' agent only needs to complete half of the modules that an agent must complete in order to obtain a licence, he said.
- <p>Although I hold an RE licence in my state I don't believe it is necessary to be affiliated with buyers advocacy or REIs. I too have been working directly with occupiers of commercial & retail property but would place a higher standard on entry level education to a minimum of a 4 year degree for commercial advocates.</p>0
- <p>Our agency has gone from strength to strength this year. The feedback we are getting from frustrated buyers in with Auctions and the agents under quoting. We have also helped over 100 sellers find the best agent to sell their property. The problem with the industry is lack of ongoing quality training.<p class='break'>&nbsp;</p><p class='break'>&nbsp;</p>I have been in the industry now for 16 years and I am not a member of any industry body as they don't benefit buyers or sellers they are representatives for agents.<p class='break'>&nbsp;</p><p class='break'>&nbsp;</p>The highest complaints to the Office of Fair Trading last year was from other agents.<p class='break'>&nbsp;</p><p class='break'>&nbsp;</p>An experienced negotiator can save buyers $10,000 dollars. We have studied negotiation and are continually reading and attending above industry standard training to abreast. <p class='break'>&nbsp;</p><p class='break'>&nbsp;</p>A number of buyers agencies in our market place have come from another industry so it is important that consumers interview their agents likewise with sellers.</p>0
- <p>I'm sorry to say it , but whenever we've had 'buyers agents' involved in a transaction , negotiations have become unnecessarily laborious , and in some cases they've actually hindered the buyers chance of purchasing the property. Particularly in cases where there are 2 or more competing offers.<p class='break'>&nbsp;</p>As for complaints against industry professionals , i'd suggest, in Victoria at least, they are a very small percentage ( and mostly erroneous ), and are on the decline ( at least I know they are in our 80 strong office group).Whilst i acknowledge buyers agents can sometimes serve a useful purpose for extremely time poor or absent( interstate/overseas ) buyers , I honestly can't see a need for them in everyday residential transactions.</p>0
- <p>More and more people are starting to see the benefits of using a Buyers Agent. Our Buyers Agency busines continues to see strong growth. In the US and UK the percentage who use Buyer Agents has grown and it will continue to grow in Australia. I agree with Janet. When you choose a Buyers Agent make sure they are licensed and a member of their local REI and a member of the Real Estate Buyers Agents Association of Australia.</p>0
- <p>Certainly it would be beneficial to the industry if both were used, but I suggest it might be very important for the agent to have attained the same knowledge base as a sellers agent. It is only then that you can actually see both sides of the table and subsequently work entirely for your buyer, whilst respecting the seller and his agent. It is amazing though that buyers shy away from BAs as well as sellers do because they see them as an agent in general. Being a once or twice in a lifetime experience it is hard to see an agent in the correct light, given all the crooked advice one can gain from friends and 'knowledgeable' contacts! If buyers were more educated as to the fact a good buyers agent will work entirely for them then it would become more frequent.</p>0
- <p>A number of good points are made in this article. I have been a Buyers Agent now for 15 years and an Estate Agent for 25 or so. Buyers seeking representation should ensure that their adviser is a Licensed Estate Agent in their State, member of the state based Real Estate Institute and also a member of REBAA. This will ensure they are getting what they pay for. Skilled representation.</p>0
You are not authorised to post comments.
Comments will undergo moderation before they get published.