What Does a Real Estate Agent Do in This Hot Market? Are They Necessary?

confusedhuh on 19/02/2022 - 07:27
Last edited 19/02/2022 - 12:03 by 1 other user

So saw a few auctions and responses from real estate agents before the sale and they seem to be pretty useless to me. All they do is advertise on real estate websites and then just turn up wearing a suit on the day of the auction. They don't even respond to queries. Even if they do its a generic response such as quote a price and I will let the owner know.

The price the house sells for has nothing to do with them but they still keep putting adverts out claiming credit - "sold in xx days, xxk above reservice price"

Why don't owners just advertise it themselves, hire photographers and auctioneers and get rid of real estate agents completely ?

Home & Garden

Comments

  • Hybroid on 19/02/2022 - 07:36
    +36

    Why dont owners just advertise it themselves, hire photographers and auctioneers and get rid of real estate agents completely ?

    Because the REA is a one-stop shop to do exactly that?

    It's basically a "manager" to take the photos, touch them up (which I HATE is legal here..), be the middle person for queries from public, arrange and chaperone viewings, filter offers and legit interest, print & distribute glossies, share contract details and other paperwork, arrange auctioneer etc.

    You outsource that to an REA and live your life normally having only one point of contact for questions that are filtered through. Try selling an iPhone on Gumtree and see what having to deal with hundreds of timewasters is like.

    • Neoika on 19/02/2022 - 07:45
      +3

      They think OP is a timewaster based on the questions. They only need to find one to pay top dollar or just the amount satisfying owner.

      • HeWhoKnows on 20/02/2022 - 19:59
        -1

        OP is simply asking for justification
        I have addressed the justification question further down. So have a look!
        I too thought the same as OP till I sat down with a couple of good agents and discovered how complex and technical selling a property has become.

        Any stooge can advertise a property
        It takes an expert with expert marketing techniques to get top dollar
        And therein lies the difference!

    • confusedhuh on 19/02/2022 - 07:54
      +8

      Yup understand that - and thats what they were good at, but in this current market they dont even respond to queries forget filtering. Last auction I visited the blueprint was a shabby 50$ printer printout which was blurry at places.

      Arranging viewings is just putting up a time on the app and people just come.

      I understand the convenience but what is agent charging you for that? What is a cut for a 1.5 mil property ? Are they worth the money?

      • mlbrooke on 20/02/2022 - 11:32
        +8

        With my property the real estate agent went from a "passed in" auction at $738k, took the leading bidders inside and over the next 1.5 hours (gruelling because we wanted to leave for a holiday)…. he progressively got them to my bottom price of $755k. For me it was worth it even though prior to the auction I was questioning what they were doing as an agency. They did a good job.

        • Anon on 21/02/2022 - 07:46
          +11

          But the commission you paid the real estate agent you could have done it yourself and settled for the passed in auction price and likely come out even…

          • mlbrooke on 21/02/2022 - 15:43
            +1

            @Anon: nope, we couldn't even get to $700k … we tried private first. The agent did the job that an agent should in my opinion. The commission was less than the difference between $738 and 755k, we told the agent that we would not sell below $750k he was very frustrated with us but he did the job.

            • johnny3142 on 22/02/2022 - 17:19

              @mlbrooke: Same here we said we wouldn’t sell below 850k and he had been fielding responses at 700k. Auction day comes and his team tips it over the line for us.

        • cadwalader on 22/02/2022 - 12:19

          How much value do you think the agent added to your selling process in terms of money (i.e convert the time, experience, skill, infrastructure and effort into a money value)?

          How much commissions did you pay out from the sale of that property? Are the values closely matched?

          Lastly, would you accept the job if the value in commissions above was offered to you to sell that same house?

          We have already established that you don't think you could have gotten the buyer to your bottom price which is fair enough.

      • MindGrenadius on 21/02/2022 - 13:30
        +1

        The work they do is not where the value is - the value is in how much more they get you. The value is in negotiation and network/database/marketing or reach. They will out-negotiate the FSBO and reach many more buyers - even if they don't respond to every single one.

        I work partially within the industry (not as an agent thank the lord) and I have seen countless examples when someone wanted to take the first offer (and would have jumped at it as a FSBO), and the agent negotiates an extra few hundred thousand. Not a bad ROI on a 20K commission.

        There are good and bad agents, like there are good and bad everything. A good agent will deliver a great returns on the comms/fees you pay them and handle all the hard work for you.

        Most of them are seriously tragic people though lol

    • supersabroso on 19/02/2022 - 08:08
      +2

      Exactly, you have to ask yourself, do you have lots of time to deal with every buyer, every inspection, every inquiry?

      Then you have to ask yourself, are you more charming and better at bluffing and negotiating than the real estate agent to the point where you can sell your house/apartment for approx. $8k-$20k more? If no, then go hire a real estate agent to save yourself the trouble and get more money!

      • pjetson on 19/02/2022 - 11:03
        +21

        you have to ask yourself, do you have lots of time to deal with every buyer, every inspection, every inquiry

        I think the OP's point is that the real estate agents are not doing those things.

    • dr on 20/02/2022 - 13:28
      +28

      And charge on average 1.8%-2.2% of the sale price, which on an a million dollar sale is $18,000-22,000 (let's ignore the properties that are double that)…. To add insult to the injury many of them insist that marketing costs are not included in their commission and have to be charged on top.

      For that amount of money you can hire a personal assistant for couple of months pay all the costs out of your pocket and still have half of that amount left for a nice holiday.

      Yes, IMO real estate agents are pompous self absorbed leaches, especially considering current market.

      • dmcneice on 20/02/2022 - 18:29
        +1

        really. All the ones here charge 3%-5%. and the average house price here is 1.2m plus. so quite a nice payday for them and they are selling very quickly

        • Tambani on 20/02/2022 - 22:19

          All the major inner west Sydney REA's are around 1.8-2%

      • imurgod on 21/02/2022 - 08:34

        I sold one of mine last year for ~$2.7M. The agent took a "discounted" comm of 1.8% plus advertising costs and auction costs….
        Insane money for such a small amount of work.

        I feel like all of it can be done via an app.

      • Mistredo on 21/02/2022 - 14:54

        If it is so easy money, shouldn't it drive commission down?

    • HeWhoKnows on 20/02/2022 - 19:51
      +6

      Its also a matter of picking the right agent - not about whether they are worth it.
      A good start is making inquiries and attend opens about similar properties to find out which agent is actually doing the hard yards to sell a property.
      See who you are impressed with.
      Also check agent reviews and referrals from people you know
      Then sit down with each short listed agent

      Dont just listen to what they have to say

      Ask them how they arrived at the estimated value (justification)
      They should give you a range. Then ask for probability of achieving the lowest and highest values.
      Beware of agents that over-quote the value. That's why asking for justification is important.
      Also beware of agents that rely on glossy overpriced brochures. Brochures don't do the selling.
      Good agents will attend nearby opens and auctions to get an idea of what potential buyers are looking at and what they are basing their own valuations on.
      Good agents will talk to every person inquiring and attending an inspection and qualify each one to ascertain who is a probable or genuine buyer. Furthermore they will ask such qualified buyers what they would pay for the property and prompt buyers to make offers if they sound promising. Even if its going to auction! This is important because the buyer thinking the highest value might not need to pay that much at auction.Hence the agent would push for a pre-auction offer to secure the highest price,
      Ask the agents about their marketing campaign
      Ask them what they think are the unique features of your property that will help get a better price.
      Ask them how they are going to reach potential buyers

      So dear OP there is a lot more to it then just advertising a property on the main real estate web sites

    • johndoh89 on 21/02/2022 - 20:23

      Bought a house about 6 months ago, looking at pictures of houses with impossible sunsets, the same looking east as looking west, the sun setting in the north. Not even close to the right colours and everything smoothed to hell to remove obvious blemishes.

      Having those houses sell before you could step foot in the door. All such bull.

      If you did get in the door to look you had to bid against someone who'd only seen the pictures and didn't know about the cracked tiles, terrible 'new' paintwork etc. Regardless if it was an auction or not.

      Was a nightmare. I love the house we bought, but for the price it shouldn't have any issues or need a paint job, but it does.

    • cadwalader on 22/02/2022 - 12:14

      I agree with what you said but that all sounds like $5k of work (1 month salary of an office admin with 1-3 years of experience) rather than north of $15k for properties in Sydney.

      Try selling an iPhone on Gumtree and see what having to deal with hundreds of timewasters is like.

      Agree, again but a lot of that annoyance comes with the weigh up for a <$1k sale.

      Theres two sides to the story when it comes to "motivating" agents to sell your property higher. The first, having a comission based structure encourages the agent to try and get a better price. The agent experiences a diminishing return on their effort to get a selling price from one buyer beyond the base market price (i.e what several people are willing) as such, they might be more inclinded to pursue a volume base approach getting as many sales as possible rather than spending too much time on one sale to increase their commissions by a bit.

      A dated (2008) paper from the USA market looked at this and was talked about by freakonomics. It found that it was more likely to be the second, rather than the first. I'm not sure how accurately this applies to the current Australian market, but thats some thing to keep in mind.

      https://drive.google.com/file/d/1IdAEb6LJC6DH7BUltgOtIStkUYU…

      Personally, I think the value a real estate agent offers is between 5-15k. Not more than that.

  • Neoika on 19/02/2022 - 07:48
    +3

    There are people selling own properties, but usually in regional/less developed areas.

    Google for sale by owner.

  • datafellows on 19/02/2022 - 07:54
    +18

    Prior to selling your house go to different open houses that are advertised by a different agencies and then pick the best agent to represent you.

    IMO it's (nearly) always better to choose an agent than going on your own. If you choose the correct agent that is :)

    • WhyAmICommenting on 20/02/2022 - 14:28
      +3

      This is a great way of “interviewing” them. Fantastic tip!

  • Stopback on 19/02/2022 - 08:02
    +1

    Is it available?

    • Hybroid on 19/02/2022 - 08:06
      +17

      More like: What's the guide price? What's the guide price? What's the guide price?

      So annoying they don't put prices of properties for sale and just say "Auction" or "Contact Agent". They also put incorrect houses prices on purpose so they show up in a "up to $1.2m" search result but when you enquire, they tell you "$1.7m-1.8m expected"…

      Well if you would be upfront about that, people would know it's out of their budget range and not waste both your and their time!

      • pharkurnell on 19/02/2022 - 12:09
        +8

        I dont like the range thing - 1.2 -1.5… knowing full well its going to be well closer to 2mill.
        They did that with my place I sold last yr, ended up 200k more than the "range" bullshit

    • holdenmg on 19/02/2022 - 09:07
      +2

      If so, will you accept payment via Western Union? lol

  • Pingus on 19/02/2022 - 08:04
    +11

    I think there is a legitimate job position to deal with what needs to be done, but my problem is that they get way too much money for it - especially in this market. They should be paid a typical administration position wage. They don't sell the house - the house will sell itself

    • JIMB0 on 19/02/2022 - 12:18
      +2

      If you think it's good money for the effort you put in you should have a go at it yourself. Some people do it part time while working other jobs.

  • Ryanek on 19/02/2022 - 08:15
    +18

    Doesn't this apply to most things? Why go to a restaurant when you can just cook food yourself?
    If you're inclined to sell your own house or cook your own meals then go for it.

    • Kangal on 20/02/2022 - 11:47
      +17

      Well, here's the thing.
      You actually need to be skillful to make food, so it's not a fitting analogy for Real Estate Agents. Also a chef's duty/hygiene requires a commodum of ethical integrity.

      • Ryanek on 20/02/2022 - 12:34

        Every high paying job requires some skill. If it was that easy everyone would be doing it.
        If it was that easy there would be no demand.

        • BuyOrNot on 20/02/2022 - 12:56
          +1

          The skill you need is to find more properties to sell and then an auctioneer who can drive the price up.

          • gromit on 20/02/2022 - 16:46

            @BuyOrNot: That in itself is a skill, as is advertising and dealing with all the idiotic questions and inquiries. I don't think the skill required is too onerous for most but it is definitely a skill.

  • Hardlyworkin on 19/02/2022 - 08:26
    +9

    Yes, to a degree. I think the most bare bones service would be fine right now paying an upfront fee. Or paying some new kid with no experience though super keen.

    If you have a well presented house in this market then most of the work is already done. Good pictures, a few open houses and someone willing to be the contact point. I don't think that's worth tens of thousands.

  • rektrading on 19/02/2022 - 08:32
    -6

    They deal face to face with PITA buyers that ask questions like a 5Y old.

    That alone is with the fee.

    • oranglama on 20/02/2022 - 10:59
      +3

      i'm guessing you've never had to deal with a 5yo lol

      • rektrading on 20/02/2022 - 11:00

        They're a PITA.

        • oranglama on 20/02/2022 - 11:22
          -2

          Maybe yours is

          • rektrading on 20/02/2022 - 11:25
            +2

            @oranglama: Your comment sounds personal.

            Vendors not wanting to deal with PITA buyers that ask questions like a 5Y old isn't personal. Using an agent adds a layer of separation where emotions can influence the price.

  • baker bob on 19/02/2022 - 08:55
    +2

    They add value pre auction by trying to create over bidding. Its not the sort of crap a seasoned buyer falls for, stuff like "there are 5 interested parties you will need a strong bid" but sometimes it works and if it gets the vendor their asking price within a week of listing then that's value. The last house someone tried that on me is still on the market and guide has been dropped by 100k. Auction next week.

    As a vendor, you can structure their commission to motivate them more to get a good price so the commission is a bit more justifiable in the stuff I sell i.e. they make a shitload if they sell well beyond my asking price but I win too so all good.

    There is a huge difference in how active agents are in my experience.

  • TheMindsetTraveller on 19/02/2022 - 08:56
    +2

    It is very ironic that buyers go and look at a property, and then ask, what is the price guide. So you go look at a Porsche 911 but your pockets have enough coins to buy a Toyota Yaris.

    Smart buyers do their research way before their purchase - they look at recent results and then compare them to the properties they are looking at. They learn the sales and purchase process. If it is via auction, they go to many live auctions to see what people do, how they bid, check out body language and so forth. Also, go on Youtube and learn auctioneers strategies.

    • admira on 20/02/2022 - 16:52
      +3

      That doesn't stack up really - the price of a porsche 911 is openly advertised and available, so a quick google shows me what to expect to pay. Would you trust a price guide you get by googling "2br standalone house in your suburb"? I find it strange owners and agents are so reluctant to give any "price guide" … you are selling something, you should have an idea of what you want and shouldn't be afraid of letting people know about it.

      However do agree about research, when its a lot of money you are spending you want to make sure you know what you are doing.

      • TheMindsetTraveller on 20/02/2022 - 22:42
        -4

        Yes but no, why should a buyer rely on an agent's guide anyway? Good buyers would already know (or have a good idea) what comparable properties have recently sold for, within the area, and then they can have an educated guess what the for sale property might go for - without any input from the agent.

        Anyway, let us go to the Porsche 911 example. I have no idea what they are worth other than plenty of $$$. I would guess I could get one in the driveway for $250k. Ok, so I jump onto their website today, added a few extra options on the base model car (that's $260k driveway) and it came out to be $340k ($80k more) or like 30% higher than expected. Just like buying a house, I guess.

        • johnno07 on 21/02/2022 - 09:17
          +3

          Your Porsche analogy is awful - they are manufactured goods. It would be more accurate if Porsches didn't have a fixed price, no two examples were the same, and were only ever sold at auction.

          • TheMindsetTraveller on 21/02/2022 - 15:17

            @johnno07: Ok buddy, I am not the greatest analogy writer - never claimed to be - but I am learning and will do better next time. Thanks.

  • askme69 on 19/02/2022 - 09:00

    They don't sell anymore.

  • Boogerman on 19/02/2022 - 09:02
    +37

    Real Estate Agents have the highest income to IQ ratio on the planet

    • payless69 on 20/02/2022 - 12:03

      Used car sales people and some law firms leave them in the dust.
      Probably a reason we are going to see a change at the next election.
      Going thru a list of medical charges and sadly I find the best doctors get the least ammount of pay.
      Dream job: Airline pilot? Work as a contractor go thru medical test torture every 6 months. Even retiring at 55 your scientific brain is worn, your social half left in child stage.
      First question to ask before signing to sell with an agent: Could I be part of your car loan. If they are insultled, show them the door!

    • victorheaven on 20/02/2022 - 13:45
      +1

      You will be surprised how little most of them earn. The good ones are making millions, but they are usually the smartest too.

  • Diji1 on 19/02/2022 - 09:03
    +3

    Before the last election, Australians watched the head of the Real Estate Association, on the news, explaining to them that if negative gearing was removed then rentals would disappear.

    Naturally the news didn't inform the rubes who it was that they were watching.

  • holdenmg on 19/02/2022 - 09:04
    -4

    Sigh…

    You seem to have issues with people wearing Suits, but at the same time would probably be the first to complain if they conducted an Auction in a tracksuit.

    Yes, Agents advertise on Real Estate websites because listing on Carsales just doesn't work.

    You claim they don't respond to queries… but are these face to face or via E-mail.
    Maybe the Agents regard the answer as having already been advanced on the Website or that you could obtain the answer by viewing the property in person or from other sources.

    Owners can advertise it themselves, hire photographers, pay auctioneers and use (or not use) real estate agents. Free world.

  • JimmyF on 19/02/2022 - 09:21
    +14

    What Does a Real Estate Agent Do in this Hot Market

    Not much….. Hot or cold market, they just act as a middle man, skimming money off the top.

    • Ghost47 on 19/02/2022 - 14:08
      +8

      I think people are too quick to dismiss middlemen.

      Middlemen do jobs other people are too lazy to do or simply don’t have the time to do. They have value, but there are bad middlemen like REAs who just make money without doing much, and what they do do is often subpar. That type of middleman is bad.

      • JimmyF on 19/02/2022 - 17:56
        +9

        I'm ok with middlemen, just REA think they're doing some of 'gods' work by selling places and some how think by them selling a $1m property they are even better.

        At the end of the day, they take all the glory and do the least amount of work of everyone in the sales chain.

      • Carmen Sandiego on 21/02/2022 - 16:42
        +3

        My entire career is middlemen-ing, and I still hate REA's.

        I, at the very least, tell clients exactly how much they're paying us, why they're paying us that money, and what I do personally that justifies that money.

        REA's don't even do any of that.

        • Ghost47 on 21/02/2022 - 18:08
          +1

          Exactly. They are scum bags, all of them. The worst part is seeing them egg people on to spend another $100k on a house because it’s “worth it” and people actually do it.

          I wonder how many simpletons out there are gonna get hurt when rates rise. REAs are irresponsible morons.

          • Carmen Sandiego on 22/02/2022 - 14:39
            +1

            @Ghost47: To be badgered into a mortgage you can't realistically pay off when the economy/government needs their money back is stupid. Believing REA's saying FOMO is more stupid.

            Fun fact - REA's have PI Insurance aka Insurance that helps them if one of them give wrongful advice that results in a financial loss for the advisee. Do of that what you will with that information :)

          • p1 ama on 22/02/2022 - 16:34
            +1

            @Ghost47:

            They are scum bags, all of them. The worst part is seeing them egg people on to spend another $100k on a house because it’s “worth it” and people actually do it.

            That is exactly what they are hired to do. REAs act on behalf of the buyer, and if they are indeed managing to get people to pay more, then they are doing their job well.

            You can't have it both ways - the buyer wants the lowest price possible, the seller wants the highest price possible.

            • Ghost47 on 22/02/2022 - 17:15
              +1

              @p1 ama: That’s true, I don’t disagree that’s what they’re hired to do but the way they carry on with the incessant appeals to emotion at auctions is just disgusting to me.

              I guess manipulating people’s emotions is a good way to sell something to someone but when houses costs what they do currently and in the current economic climate think it’s just dangerous and irresponsible.

              A property is one of the biggest (probably the biggest) purchases someone is going to make in their lifetime, it should not be emotional but logical.

  • tallkid123 on 19/02/2022 - 09:25
    +3

    You're the buyer, OP.

    REAs don't work for you. They work for the vendor.

    And the main reason REAs (and property managers) exist is to maintain that degree of separation between the vendor/buyer or landlord/tenant.

    As a vendor, I just want to receive bids higher than the reserve price.

    As a landlord, I just want my rent paid on time and other issues sorted without fuss.

    • JimmyF on 19/02/2022 - 10:06
      +46

      REAs don't work for you. They work for the vendor.

      REA don't work for the vendor either…. They work for themselves.

      REA just care about the sale, its the biggest con out there that REA care about the highest price because of commission. A REA just cares about a sale.Selling a house for $730k today or work the crowd for 4 weeks to get $800k? Lets do the figures @ say 2% commission, means they could get ~$14.6k today selling at $730k, or do 4 more weeks of work and get ~$16k. Hmmm tough choice isn't it?

      The main job of a REA other than skimming money of the top of everything is to talk the buyer up and the vendor down till the price meets and then collect the commission.

      • pharkurnell on 19/02/2022 - 12:10
        +5

        Bingo. we have a winner

      • loulou1 on 19/02/2022 - 13:13
        -1

        Current commission rate in QLD is 2.85%. So using your figure $70,000 x 2.85% = $1,995.
        Might be 4 weeks longer, but how much of that time are they really spending on that particular property? Maybe 4 x 30 minute open homes (that's 2 hours), some enquiries (let's be generous and say another 2 hours) and a negotiation or two (another two hours). 6 hours work for $1,995, that is not a bad pay rate.
        The better outcome in any situation is to talk the buyer up, rather than talk the seller down. Unless the seller is being unrealistic with their price, in which case the seller wouldn't get that higher price even if they did it themselves.

        • happydude on 19/02/2022 - 13:58
          +11

          A bird in the hand is worth two in the bush.

          You are assuming sitting on it and working the phones in the hope of $1995 extra commision is a sure thing. It's not.

        • JimmyF on 19/02/2022 - 18:02

          Current commission rate in QLD is 2.85%

          Depends on the area, the price of the property being sold etc, rates in VIC are sub 2% in most areas.

          Might be 4 weeks longer, but how much of that time are they really spending on that particular property?

          and in that 4 weeks they spent trying to get a extra lets say $2k commission, they could have sold another property. But then maybe they don't get a better offer on the property….

          So do you take two lots of ~$14k vs one lot of $17k?

          The better outcome in any situation is to talk the buyer up, rather than talk the seller down

          I'm guessing you're a seller then if you have this view. The agent doesn't work for you, even if you're paying them. They talk one up, one down.

          • loulou1 on 19/02/2022 - 20:08
            -1

            @JimmyF: Prices in Victoria are generally higher than in Queensland so perhaps why the lower percentage commission?
            You make a good point, those six hours are better spent securing and selling the next property because the rate per hour will likely work out to be more.

      • Ghost47 on 19/02/2022 - 14:04
        +1

        Kinda sad you have to say this. It’s obvious they only work for themselves.

        • JimmyF on 19/02/2022 - 18:03
          +1

          Kinda sad you have to say this. It’s obvious they only work for themselves.

          Most people think because they are PAYING commission, that the agent is working for THEM. The sad truth is, they are only out for themselves.

      • TheMindsetTraveller on 20/02/2022 - 22:52
        +1

        I somewhat agree with this sentiment but having a good relationship with an agent can be beneficial, especially if you have multiple transactions with them over a period of time and you learn to trust/respect each other.

        Anyway, I had an excellent sales agent back in 2007. They were committed to getting me the best price possible and at auction, suggested I put a reserve price that nobody would dare pay so that I could use that (not meeting reserve) as one final tool/strategy to extract a bit more money from the highest bidder. They said they were not interested in "sold the house in one week" or "exceeded the reserve by $100,000" because that was good for their marketing but not good for me, the vendor. If I could extract a further $10k or $15k from the highest bidder then that is much better for me. They told me that never sold a house 'above reserve' at auction.

        • JIMB0 on 21/02/2022 - 07:40

          So in other words they never sold a house at auction as the reserve was never met.

          • TheMindsetTraveller on 21/02/2022 - 15:58

            @JIMB0: No, it means a house did not reach the reserve but was sold in post-auction negotiations.

            For my property, it had passed in at $470k. I was able to get a further $5k in the negotiations afterwards. When the seller is that close to having won, a further 2,3 or 5k is not out of the question esp. when they have likely been unsuccessful in past house purchases.

        • JimmyF on 21/02/2022 - 08:11
          +1

          suggested I put a reserve price that nobody would dare pay so that I could use that (not meeting reserve) as one final tool/strategy to extract a bit more money from the highest bidder.

          and people wonder why buyers think agents are pure scum?

          Also a lot of people don't really start bidding until they hear the property is on the market, otherwise the bids are worthless and mean basically jack until that point is reached.

          I had an excellent sales agent back in 2007

          Sounds like a terrible agent to me that buyers will quickly end up avoiding. I have one of them in my area.

  • WreckTangle on 19/02/2022 - 09:34
    +25

    Real estate agents thrive on greed amongst the misery of high house prices. They don’t contribute to society - they aren’t nurses or teachers, and most don’t donate any profits to charity. The should be ashamed by their profession.

    • JimmyF on 19/02/2022 - 10:08
      +16

      They don’t contribute to society

      Agreed…At least with lawyers they get some things 'right' and society as a whole benefits from some of the ambulance chasing outcomes…. But yeah REA can't think of one they have done to make the world a better place.

    • rektrading on 19/02/2022 - 10:09
      -5

      People donating money doesn't have anything to do with what they do for a living.

      People should also not be ashamed of making money.

      Not for ❄️ 👸
      https://youtu.be/6bbzwJ0Sx48

      • raptormesh on 19/02/2022 - 11:12
        +4

        Man you've got that (profanity) you got mine boomer personality down pat, don't know if it's a bit.

        • rektrading on 19/02/2022 - 11:20

          Making money isn't personal.

          • Kangal on 20/02/2022 - 12:00
            +2

            @rektrading: I would say, everyone should make it personal to look after their wealth. It's not "just business".

            I don't agree with the Anarchists, but a little bit of cannibalism of the undeserving minority would go a long way to bring equal opportunity to the majority.

  • raptormesh on 19/02/2022 - 11:11
    +8

    They don't do jack shit before, why now?

  • AndyC1 on 19/02/2022 - 11:23
    +2

    REA vary to buggery. Last year I rang 5 to get them to email me what they can do to sell my house and one did not respond at all, one sent a one page saying I will do a good job and the other two sent out what I call a house valuation report that you can get for nothign if you look and both included info on why to go with them.

    So 2 out of 5 tried to get my business. What can I say, but they vary and you need to do your research before getting them anywhere near your property.

  • orangetrain on 19/02/2022 - 11:27
    +6

    Real estate agents don't care in a seller's market. Houses sell themselves. So they'll do the minimum, no matter the incentives.

    • confusedhuh on 19/02/2022 - 13:02

      Agree

      • Kangal on 20/02/2022 - 12:02
        +2

        They were already doing the minimum. Now they're doing less! What's less than minimum?

  • elvislj on 19/02/2022 - 12:28
    +19

    I once sold my own townhouse in sydney. the sold price was more than what the agents got for the neighbours around the same time.

    Real estate agents profit on commission so their focus is on getting new vendors not pushing the pricing up. a $2mil house will get them $40k+ commission, all the efforts pushing the price up will yield a fraction of profit compared to hunting the next vendor. that's why their office windows are full of "sold properties" to attract vendors not buyers.

    They are way over-paid and as the property price doubles every decade their income doubles as well. I am an architect we make a lot of efforts from concept to construction. and on the balance book the real estate agents sometimes makes 10 times money than we do by just selling the finish products. There is almost no training needed. you just need to be good with people. And I found many of them are just greedy. The good ones don't lie but it's unlikely they will willingly tell you the truth to lose the deal. That's a lot of money in each deal. They are not selling shoes and point you to the next shop for a better fit. The lastest south park episode mocks the RE agents and it's actually pretty accurate.

    I think their commission should be greatly reduced. The rate is based on the property value decades ago when 2% was about few thousand $$. recently I saw on the news there is this agent in Sydney makes $7mil a year.

    • confusedhuh on 19/02/2022 - 13:03
      +1

      Spot on mate

    • cobknob on 20/02/2022 - 15:38
      +3

      Similar spot here. I went with someone to every real estate agent in their locale and all there sale prices for the land were equivalent to a fire sale.

      Advertised privately through an online property sale site. Not many hits. Then hired professional drone operator to take photos and listed it in the local papers - most rea don't even do this. Got 50k+ on what a local realty wanted to sell it for - and the only realty who wanted to list it.

      Just do a better job than them. Which isn't hard since most real estate agents don't do what they used to. Now adays they don't do any sparkle and shine or garden maintenance lol for selling property.

      And if your looking at rentals. Lazy as (profanity). They don't even upload decent images. Sometimes they skewed, they might show a few images or less, the image quality is crap like they've used 1st Gen digital cameras, etc. Even property reports are stuck in the stone age. Personally I'd introduce nationwide regs that require document and rental standards minimums they must meet. Make things cleaner and easier on both sides!

  • Oofy Doofy on 19/02/2022 - 15:02
    +4

    Very easy to sell a house yourself. Absolutely. Houses are moving in this market, and you're the best salesperson for your property.

  • DoctorCalculon on 19/02/2022 - 21:43
    +1

    If you are capable of handling all the stress and have the time on your hand, then DYI. Otherwise, REAs like recruiters are a necessary evil.

    • funnysht on 20/02/2022 - 09:40
      +3

      if you cant spell DIY then prob best not to DIY ;)

      • cashless on 21/02/2022 - 13:51

        I think they meant Do Yourself an Injury

  • alexm1 on 20/02/2022 - 09:59
    +1

    Some realstates works on fixed commission

  • Brianqpr on 20/02/2022 - 10:28
    +6

    What I don't get is how they continue to get away with taking commissions, regardless of price. It's the same amount of work regardless of the property price.

    The financial industry has seen commission payments largely stamped out and yet real estate, a lot of which is also selling Investments to people and providing advice on them, gets a free ride.

    Prices should be fixed based on the services being provided, it's a rort.

    • daleroy1234 on 20/02/2022 - 10:39
      +1

      Some will do a fixed price if you ask

  • Pufff on 20/02/2022 - 11:02

    You missed the main thing. They under quote so more people think they can actually buy the place to create competition.

    • gromit on 20/02/2022 - 19:51
      +2

      Seeing quite a few overquoting in the current market. One place I put in pre auction offer 150k below the guide+ price, was rejected early Jan, passed in at Auction and now on market for my preauction offer and is still unsold (I have moved on from that place though so my offer is off the table and I thought I was being very generous on my offer as I wanted a quick purchase), there is a lot of greed in the market at the moment with unrealistic selling expectation.

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