Are real estate agents honest, do they bend the truth or are they just trying to do the job without being sued?
Sometimes I wonder why real estate
agents have consistently had a bad reputation over many years.
In my experience of working for
different real estate agencies I have come across the good the bad and the
ugly.
But I just want to put one thing out
there.
We are not just money hungry vultures
looking for our next victim to sink our claws into, this is what the media
would like to perceive us as.
I am not against the media as they
are just looking for that one story that generates the public’s interest.
For the most of us we are regular
people working a job, doing our best to be the best, in a very competitive
industry.
It is normally that one rogue real
estate agent that quickly gets caught out by the ATO, or fair-trading because
of the impossible to cover-up paper trail.
I will admit most of us don’t have
degrees and haven’t always been successful.
We have failed at many things but
what we do know is real estate and people.
Some
of the best real estate agents were never the best at school but found an
avenue by which they could succeed
This was done by pure hard work and
determination.
The paranoia of the real estate
industry “please don’t sue us, we were only trying to help.”
To be quite honest a lot of us are
just trying to do our job, to the best of our ability without being sued.
Today because of these rogue real
estate agents, our industry is heavily regulated and we can be audited
without a moment’s notice.
In fact because of the new types of
lawyers out there willing to work on a “no win no fee” basis, real estate
agents are even more paranoid about saying and doing the wrong thing by
anyone.
Real estate agents according to the
law are in a position of a “high degree of trust” (this is funny because we
have been voted one of the most trusted professions).
This is why when a real estate agent
that commits a criminal offence we are judged more harshly than the average
person, this is called a “breach of trust”.
The more breach of this trust the
more of an imprisonment for us real estate agents.
Ignorance is not a defence for us
and even if we have had no previous criminal offences we will still be sentenced
harshly.
The
truth about real estate agents lying
When we attend our training to
become a real estate agent we are told about all the laws we can be punished
by and believe me there are a lot of them!
So if a real estate agent deliberately
or recklessly lies for financial gain they are playing a deadly game of cat
and mouse with the authorities that will eventually catch up with them.
Most agents just want to do the best
job possible for buyers, sellers, landlords, and tenants. They don’t want
to be sued just as much as the next sane person.
Therefore with our extra trust the
law has put on us, no real estate agent in their right mind ever wants to lie for
financial gain, this is the cold hard truth about our industry.
Are
agents allowed to lie about multiple offers?
This is a common issue for buyers
and I came across it myself when I bought my property.
I can understand that angry and worrying
thoughts, trying to find out if the real estate agent is lying about this.
On top of that, I do know of the
heated discussions that happen back at home, on whether you should make a
higher offer for that dream property.
I do know of dodgy real estate
agents that when desperate to sell a property that they will lie about having
other offers on the property.
Smarter agents would say “we have
multiple interested buyers” which is not illegal to say.
We are bound by a strict code of ethics
and law that is taken very seriously by Fair Trading.
If you feel as though you are being
straight out lied to about other offers, I recommend you make a complaint directly
to the business owner (this may not be the director, you may find them under
principal).
No principle of a real estate
agency wants to lose their real estate licence, and this will quickly spur them
into action because it is a serious allegation to them.
If the dispute is not resolved
after three attempts take your problem further up the food chain.
How
to call their bluff about another offer
Some people say to hold firm, don’t
look interested, don’t raise your offer and see what the agent does.
Wait for a counter offer.
Well what if that counter offer never
comes and there really is a buyer?
This is how many people are
gazumped.
The other buyer offered more, you
lose the home and get frustrated at the agent.
What is really happening here, is
the buyer has a lack of negotiation skills.
Some people justify this by saying
that there are other properties out there.
Well this may be true but it may
take you another six months to find that dream home.
A quick way to resolve this issue
during negotiation is to purely say “are you sure there are multiple offers
on this property as it is illegal for you to lie to me about this” this helps
them either to correct themselves and offers them a way out (this is a great
way to test the agent’s negotiation skills), or they will hold their ground
and feel a bit offended.
This is exactly what happened to me
and I found out there were multiple offers and it assisted me in securing the
property against higher offers.
Negotiating
with the seller directly good or bad? Does it cut out the lies?
I have heard stories about buyers
that have made an offer and have been frustrated over a multiple offers situation.
They have gone and door knocked the
vendor/seller trying get some straight answers.
This usually ends in more anger and
stress for the buyer and seller. “Why” you ask?
Think about the situation you could
be walking into;
- The sellers are annoyed that you haven’t gone through the agent and don’t consider your offer.
- They know about your offer but are insulted that it was too low for the home they love so much.
- It could be a divorcing couple and you could talk to the partner that doesn’t want to leave (especially for your lowball offer) and they can get more emotional about keeping the property
- The seller may annoy you, or one of your easily annoyed family members, with their negotiation style and you may decide not to buy because of a personality conflict.
Keep in mind there is a reason why
they have hired a real estate agent.
It is usually because they don’t
want to negotiate with a buyer directly or they would be selling it
themselves.
What
drives us real estate agents to sell properties for more?
Agents do not benefit much by getting
you to raise your offer.
Let me explain, if the agents get
you to raise your offer by $2000 on a $400,000 property they will only get
roughly a $100 based on the average commission.
Not to mention the office they work
in gets a portion of this hundred dollars.
The agent doesn’t really end up with
much especially after their spouse has got a hold of the money, jokes.
Do you seriously think a real
estate agent that has spent thousands of dollars on office overheads and
attaining their licence over $100?
So you might be asking yourself,
“What encourages the agent to make the seller more money?”.
Well that is pretty simple, as our
industry is very old school in its ways and reputation can make or break an
agent’s business.
I can’t tell you how many people
have decided to sell with reputable agencies, just because they have heard from
friends and family that they get the best prices for properties in specific
areas.
It is simple as that, old-fashioned
word of mouth goes a long way in a community.
Agents have a fiduciary requirement
to work in the best interest of the seller, there is no hiding that.
I just wanted the set the record
straight and say:
We are acutely aware that the buyers
we are selling to now, will start to become our sellers over the next 12 months
and beyond.
It makes no sense for us as an agent
to compromise our integrity and lie to buyers, as in 12 months time those
buyers would not want to sell with us.
- We are human beings that do make mistakes and do our best to make things right.
- We are not all like those rogue real estate agents you read about in the news.
- We have nothing to gain by being dishonest and it ruins our reputation/business.
- We know how emotional such a large transaction can be for families, and we do our best to help people through it emotionally.
There is nothing more satisfying
than getting a phone call, from a buyer or a seller after the dust settles,
and hearing that we have played a special part in making their life just
that little bit better.
Not to mention all the chocolates
and flowers our clients give us.
Yes, some of us make good money
while we are doing it to, but people that do this job just for the money, usually
don’t last that long.
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