Real Estate. It is an excellent topic for any social engagement. Everyone is interested in it. They either want in, want out, want nothing to do with it or (in most cases) fancy themselves as a bit of an expert at it. Real estate is one of the only industries that no matter what the individuals opinion, practically everyone has something to say about it, whether it be their field of expertise or not.
We have increasingly seen over the last 24 months that professionals in the real estate industry, be it a selling agent, a buyer’s agent or a property manager, are dropping fees to ridiculously low levels, all in the name of “winning” business. This is great news for the consumer! Or is it?
The consumer may appear to be achieving a good deal, price wise, however are you as the consumer factoring in all aspects?
- Are they licenced & certified?
- Are they not only certified but educated in the field of Real Estate?
- Do they undertake regular training?
- Do they carry sufficient professional indemnity insurance?
- What due diligence will your appointed agent undertake?
- What value do they add for both the process & transactional phase?
- How do they source properties?
- Do they value relationships?
- Are they backed by years of experience? Not necessarily the individual themselves but do they have a support team around them, be it colleagues, senior staff member or the Director?
- Do they manage a property as if it were their own?
- Does the agency have good staff retention?
Unfortunately a lot of the time consumers places fees before experience. The skill set of each professional and or agency is different. And it is usually those with a unique skill set that are preserving their fees. In the words of Sailor Jerry “Good work ain’t cheap. Cheap work ain’t good.” Sailor Jerry was referring to tattoo artistry, however the same can be applied to many industries, including the real estate industry. Property isn’t a cheap investment so when you embark on it, you want to be sure to get it right. Real Estate Institute of NSW President John Cunningham says “A lot can go wrong if you are dealing with an inexperienced, unskilled agent.” And we agree. You need to be able to rely on the advice you receive and have quality information in order to have confidence, whether it be from a buyer’s agent, selling agent or property manager.