Real Estate Agents

My daughter was a real estate agent in Sydney up until 10 years ago. and believe me it is hard work. Long hours, seven days a week. Its strange that a seller always blames the real estate agent when the property doesn't sell. My daughter found that in most cases the reason they don't sell is simply, they are overpriced. In her experience, every property will sell at the right price. Unfortunately some sellers believe their properties to be worth more than they really are.

Sometimes there is a method in the agents so called madness in asking a vendor what figure he/she has in mind. Too many times my daughter had vendors who thought their properties was worth thousands more than they were and to list sellers who have that idea in mind was just a waste of her time to take a listing of the property.

Real estate agents valuations are based on the current market trends and estimates are calculated on these facts. Not much point in asking $600Ks for one property if a similar property in the same area has just sold for $450ks many sellers cannot come to terms with that fact.

Some vendors don't realise the agent cannot force buyers to meet the price the seller is asking if the property is over priced and is not in the interest of the agent to over price a property for that reason. The agent wants to make the sale too and is also in their interest to make as much money as they can of the property within reason.

The property market, contrary to what some experts may tell us, in an effort to keep prices buoyant, is currently in a slump, hence the slow turnover of properties.

My son has his property on the market and it has been for the last 12 months. My daughter told him it would not sell at the price he is trying to get for it and sure enough, it hasn't, it is simply over priced.

When property prices boom and property prices go through the roof and the seller can get more or less the inflated price he/she wants for the property, these same vendors who call them crooks now are happy to call them great agents or salesmen/women at the time they put their cheque in the bank with a nice big whopping profit they have made on their original purchase.

We just have to come to terms with the fact that it is a cycle that goes around. one day its a buyers market another day its a sellers market. Today, is a buyers market.

For those of you who call real estate agents liars. Would you really like them to tell the complete truth about some of the aspects of the property you might be selling. I don't think so. come on guys, lets not be childish about this.."oh the salesman told me a fib" Join the real world.

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Originally Posted by _fly_

Your right,
These are based on my and friends interactions with the profession.
I'm sure there are a few honest ones around.
But its a bit like honest car mechanics. Took me 34 years to find one of those I could trust.

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Now your stepping on my toes :)

First mechanics: Motor mechanic is the second lowest paid trade. I don't think any of the boys I attended tech with are still doing it. I got out as soon as I had my papers. The reason your repair bills are so high are twofold: ridiculous government regulations and anyone decent getting out of the trade. If the trade was more attractive you'd get a better quality of mechanic.

In truth there are plenty of good ones but they have a full compliment of customers and don't have to advertise for more.

Housing: First thing you need to realise is most of the people offering commentry on real estate (and most other things) have an agenda. The HIA and rp data both try to talk up the market to encourage people to buy.

Australia has the least dense housing in the world, more m^2 per person than the USA and bigger houses. Sure supply and deemand come into it but affordability matters also. If you can't afford the mcmansion you buy the bungalow/townhouse/flat, move further out from the CBD. We simply don't have a shortage of housing, what we have is less m^2 per person than in RECENT history. I came from a family of 3 boys, we lived in an 8 sq 2 bed house. That was normal then, nowdays people "think" they need 4 beds and 200 spm.

The housing market has seen 4 downturns in my lifetime. On each occasion prices surged well about the 3.5 long term multiple, fell between 10 and 20% then went flat till wages caught up. I see no reason why this time will be different. The only thing that was ever going to produce the 40% fall predicted by some was high unemployment levels, and the only thing that will boost housing prices again will be increases in real wages.

I resent the politically expedient labour policy a few years back with the $21k first home buyers bankrupcy invitation, er I mean grant. I am sure it provided a good opportunity for some but for most it simply compels them to buy a home they cannot afford, lose it and their life savings and go through tremendous pain.

Australia at one stage had the most mobile population in the western world. It is more likely the difference between us and europe is political stability and affordability.

Real estate agents I think reflect the culture of the area they work in. In regional areas where everyone knows each other you can get a way with a lot less. I have written before in what I see as the advantages of these communities. In a well off area like mine you get a disproportionate number of super salespeople and it is amusing to see the tiers of bad behaviour with bad real estate agents complaining about even worse agents. The lady I gave my business to has been in our little enclave for 20 years. shes pretty straight up and of course interested in stability. There are others whose behaviour even surprises cynical old me :)

Finally, I bought a new car 2 years ago. I was amazed at how poor a service I recieved from people potentially wanting to take $30,000 of my money. I get better service spending $5 on a hamburger.

But as I say, would you do that job ?

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I resent the politically expedient labour policy a few years back with the $21k first home buyers bankrupcy invitation, er I mean grant. I am sure it provided a good opportunity for some but for most it simply compels them to buy a home they cannot afford, lose it and their life savings and go through tremendous pain.

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It also pushed up the price of every house by $21k. Now that its gone the market has pulled it back.

A good friend of mine runs an independent agency with a lot of integrity and professionally. As with all businesses there are all sorts out there.

From my experience (I,ve bought and sold a few properties over the years) they are usually failed used car salesmen,takes a lot of work to separate the chaff from the hay.My next door neighbour when I lived in Sydney was a real estate agent as well as a migration agent.She offered to sell our property at a reduced rate ,so like an idiot I agreed to it,When we finally sold our property ,she really performed when I would not pay her commission immediately after the sale,instead of waiting till everything was settled.Her live in boyfriend (great bloke) showed me a letter she had written for some poor Indian sucker ,no more than two paragraphs charged the poor b..... $1800.He didnt hang around long after that,couldnt stand her lies and deception.One open day on our property I as usual departed and left her to it but went and sat in her garage where I could see how many lookers she got,(only one)after the alloted time I walked around the corner as if I had been for a walk and on arrival at home asked her how the open day went,"Great" she said "had such and such interest from so and so, etc etc ,I'll give you a report as soon as I type it up"
Well what a load of b......t she had in in it .Two pages of utter crap.At least twelve people gave opinions ,what an imaginition !!!! All this from one looker!!
When I confronted her and told her what I had done, did she perform again"Don't you trust me",etc etc,shaking like a leaf all the time we were arguing ,relations were never the same, but it stopped all her bull... from then on,and eventually we had a good outcome and sold the place well over the reserve.:(

When can we start on Banks....? OK back to motor mechanics, One of the mobile mechanic mobs had the practice of telling you that you needed new brakes shoes. They took them out, spray painted them black and put them back in and then charge you for 4 sets of shoes. A friend of mine worked for them and it was std practice, was told to do it. I took my car for a service at a chain store mechanics. Told them it was hard to start. Got car back with a nice sheet with all the things they had done in the service, All ticked as done. When I got home it was still hard to start. The battery had no water in 2 cells, The radiator had little water. I rang and asked what else they didn't do and they said they were the only 2 things they had not done. I then asked them how they checked the tyre pressure in a flat spare? and why was the tyre pressures on the car all different as if they hadn't been done. Thats why I'm so glad I finally found one I can trust. But my father still goes to them and he's happy with them. Doesn't matter how much you get paid. Thats no excuse to do a bad job. Don't like the job, get a different one. But if your being paid to do a job, do it properly. I really want to do banks...........

I've not only heard those stories I've experienced them. I remember sitting waiting for my car at a certain repair place in brisbane and they were talking to another customer. Read out a list of things "wrong" with his commodore. By the time they were finished it was about $3800! and he said better get it done! More than teh car was worth.

Sigh, it's painful.

It's all well and good to say do your job properly but as I say anyone that concientious can make more money for less effort elsewhere. I make about double what a mechanic makes sitting in an air conditioned office, no skin problems, no heavy lifting, no hot (or cold) workshops, no getting abused by unreasonable customers (I could tell you some stories).

Banks are certainly mon...well insert adjective of your choice, but you have to remember they aren't community organisations, they are private companies, ruthless and totally committed to making as large a profit as they can. The ONLY way to hurt them is take your money elsewhere. Complaining might make you (us!) feel better but it doesn't actually change anything.

Bit like elections.

I like to beat banks at their own game. I remember trying to take 2000 bucks out from a different state bank in those days. They told me I couldn't take more than 500 unless it was my home branch. They offered a bank chq. Told me it was as good as cash. And in those days it was instantly cleared. As the money was for my GF at the time to buy a car I had no idea who to make it out to. So I had it made out to cash and was warned what would happen if I lost it. I then said that seeing I was working in the area an account at their branch was a good idea and proceeded to open an account. when she asked me how much I wanted to open it for I said 2000 and handed over their own bank chq. Can you see where this will lead??. As soon the as account was opened I proceeded to tell her that seeing this was my home branch I wanted to close the account and could I have my money in cash. I have never ever had a dirtier look than that woman at South Yarra State bank gave me. She new she couldn't do anything about it. I also never pay for bank chq's. I tell them to put the cash on the counter. I f they want to GIVE me a chq so they don't miscount and because its easier for them then I'll take it but I will not pay for their convenience. Manager always says ok. If they want to give me 20,000 cash (and one did, house deposit) then I don't have any trouble walking around with it. Think that manager was trying to call my bluff.

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Originally Posted by _fly_

If they want to give me 20,000 cash (and one did, house deposit) then I don't have any trouble walking around with it. Think that manager was trying to call my bluff.

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I can just see you standing at the counter, the teller handing out 20,000 in bundles and not counting it and then you laboriously count every bundle (twice for accuracy) whilst the que is getting bigger and bigger waiting for the teller that you still occupy. :D:D:D:D


Peter.

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Originally Posted by _fly_

When can we start on Banks....? OK back to motor mechanics, One of the mobile mechanic mobs had the practice of telling you that you needed new brakes shoes. They took them out, spray painted them black and put them back in and then charge you for 4 sets of shoes. A friend of mine worked for them and it was std practice, was told to do it. I took my car for a service at a chain store mechanics. Told them it was hard to start. Got car back with a nice sheet with all the things they had done in the service, All ticked as done. When I got home it was still hard to start. The battery had no water in 2 cells, The radiator had little water. I rang and asked what else they didn't do and they said they were the only 2 things they had not done. I then asked them how they checked the tyre pressure in a flat spare? and why was the tyre pressures on the car all different as if they hadn't been done. Thats why I'm so glad I finally found one I can trust. But my father still goes to them and he's happy with them. Doesn't matter how much you get paid. Thats no excuse to do a bad job. Don't like the job, get a different one. But if your being paid to do a job, do it properly. I really want to do banks...........

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Two experiences with car service. 1/ replace windscreen wiper rubbers. Charge for three rubbers - car only had two wipers. 2/ One of the wheel nuts on the car was missing a dome, so I bought a replacement from spare parts when I dropped the car off for service. Nut went into the glovebox. When I picked up the car they had replaced the wheel nut on the car - now this is where things get interesting. They charged me for the wheel nut - MORE than what I had paid the previous day at their own spare parts counter. I complained to the service manager who then took off the wheel nut that the service team had put on and replaced it with the one I had purchased and placed in the glovebox.

Now both these things happened over 20 years ago but it makes you wonder what other money making scams go on.

I've always thought that there is a certain amount of "conflict of interest" associated with real estate agents. At the same time they are supposed to get the best price for the seller and get the best deal for the buyer. Very often a no win situation and from what some other forum members have written an often thankless task.


:offtopic:

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Originally Posted by damian

Now your stepping on my toes :)

First mechanics: Motor mechanic is the second lowest paid trade.
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Damian, where did you glean this piece of information from, and what is the lowest paid trade?

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Originally Posted by Grumpy John

I've always thought that there is a certain amount of "conflict of interest" associated with real estate agents. At the same time they are supposed to get the best price for the seller and get the best deal for the buyer.

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I disagree.

Real estate agents only act in the interest of the seller/landlord. They don't and never have acted in the interest of the buyer/tenant. It's a buyer beware situation and the only requirement they have in respect of the buyer/tenant is that they act within the law.

Getting a best price for a buyer is not what they have to do, in fact getting the worst deal for the buyer, and as such the best for the seller - their employer, is their job.

If a buyer/tenant wants help in negotiating with a real estate deal/tenancy then they should be prepared to hire a buyers agent.

Peter.

Yup.

The Vendor is the one who is paying the agent, not the buyer.

If it all works as it should, the buyer approaches an agent with a criteria in mind & the agents attemps to find the 'best fit' for that criteria from what they have listed on their books.

Sometimes, a buyer will approach an agent & say that they would like to buy a particular property that isn't listed for sale & ask the agent to approach the owner to ask if they would sell.
The vendor will still be the one paying the agent.

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Originally Posted by Grumpy John

I've always thought that there is a certain amount of "conflict of interest" associated with real estate agents. At the same time they are supposed to get the best price for the seller and get the best deal for the buyer. Very often a no win situation and from what some other forum members have written an often thankless task.


Damian, where did you glean this piece of information from, and what is the lowest paid trade?

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Agents work for the seller not the buyer. If a buyer wants a representative they hire a buyers agent, which is becoming more popular.

I don't recall, I just remember hearing it from several independant sources, probably including my teck teachers.

The lowest was aircraft fitter. Good eh ? :)

I had a long chat to one of the ladies at my CU yesterday. I don't often contact them but I'd managed to forget my internety password. Anyway after chatting about my accounts for a while she suggested several options for me to feel more secure about the money I have on deposit. We also had a bit of a chat about how everyone at the CU was going. Friendly, everything on a first name basis, and later I emailed to confirm what I wanted done. This am a reply to confirm my instructions are being attended to. No fees, no hassle.

20 years, 1 account, 0 problems.

I can empathise with almost every post made in this thread and, to a degree, agree with much of what has been said.

It caused me to sit back and examine why we become so agitated about these occupations. In particular, why are we more agravated than with experiences at the supermarket or the hardware store?

In fact we do become displeased with hardware stores too and we frequently read discussion on the forums regarding their various experiences.

I think the reason is that these experiences have an important impact on our lives. With hardware it is affecting our hobby, which frequently is a passion of the first order. With the professions it is a significant aspect of our lives, both emotionally and financially.

So the categories would include, but are not limited to, estate agents, car salesmen, lawyers, doctors and dentists. The latter categories I include without compunction as they lost respect when the dollar became their driving force.

The truth is that all these occupations have good and bad operators and equally they have to deal with difficult customers, clients and patients. But the consequences of a bad experience in these areas can change your life.

It is probably this last statement that can make us so vitrioloic. Most of us don't get too upset if we buy a punnet of strawberries and they turn out to be over ripe. Just as an aside, that is not true of SWMBO, who will metamorphose into a screaming banshee for fifteen to thirty minutes without drawing breath. (This fact leads me to believe she missed her true vocation in life as a sponge diver:wink:.) It apparantly gets her goat.:(

In my extended family there are several estate agents, a couple of lawyers a dentist etc etc. I am neither exonerating them nor condeming them.

Someone else alluded to "caveat emptor" (let the buyer beware) and as always we should bear that firmly in mind. Be very wary of people who tell you what you want to hear. Evaluate your own situation to the best of your ability and if you are not comfortable with that get impartial advice. (Sometimes I wish I would take my own advice:-)

Having said all that, during this last year I have "sacked" both a dentist and a doctor. I was unhappy with aspects of the service they gave. All of you can do the same with the occupations discussed in this thread. There are good people out there and it is probably easier for those of you who live in the major communities to find those people.

If we don't hunt around for good service from ethical businesses we can hardly complain.

Regards
Paul

"and if you are not comfortable with that get impartial advice. (Sometimes I wish I would take my own advice:-)"
One could interpret that as the oxymoron of all time.
Or is that just me being twisted.
Regards