Real Estate Agent Car

bn030687 on 30/01/2018 - 10:33

Ok, WESTPAC HIGH YIELD INVESTMENT CAR jokes aside please…

so I'm a real estate agent, and have been doing OK, I drive a 2011 Volkswagen passat, and was wondering if I should upgrade to a BMW or Mercedes which I'm in a position to buy outright but given depreciation, and increased running costs Eg insurance, servicing , parts etc the oz bargainer in me wont let me buy it, because quieter frankly I couldn't care to join the wank ranks.

This is my question, do you think the agents vehicle has an influence in the owners selection process when choosing an agent to sell their home?

thanks

Education & Work

Comments

  • boomramada on 30/01/2018 - 10:41
    +3

    Only if you driving a Aston Martin DB9, otherwise NO

    • Randxyz123 on 30/01/2018 - 11:03

      Why would you pick a DB9 (a 10 year old car) over a DB11?

      • boomramada on 30/01/2018 - 11:07
        +1

        Because OP is a real estate agent not a high end drug dealer, two different status type :)

  • Qroozn on 30/01/2018 - 10:42
    +43

    When real estate agents drive really nice cars it just re-iterates the idea that real estate agents make way too much money off selling my house.

    • boomramada on 30/01/2018 - 10:57
      +1

      real estate agents driving a nice car = making good money, but they usually based on % of sales, so he or she good at what they do? :)
      But I usually go for the one that well presented and know what they talking about and good knowledge on the environment or give you a better deal.
      SO what they driving has less influence.
      Just buy a car you enjoying driving, you prob have tax benefits too, since you use it for work.

    • bobbified on 30/01/2018 - 12:52

      the idea that real estate agents make way too much money off selling my house.

      Would you also complain about the doctors who are driving around in nice cars?

      • tonyjzx on 30/01/2018 - 12:56
        +3

        the difference is a doctor has 6yrs study and is responsible for your life

        an agent sells your property for allegedly the best price in exchange for a commission YOU AGREED TO…

        • bobbified on 30/01/2018 - 13:07

          the difference is a doctor has 6yrs study and is responsible for your life

          I'm addressing the issue that ggqroozn says about agents making too much money.

          People in other professions can drive nice cars too.
          Obviously, those people can charge less for their services too, but why would they?

          If someone deems the cost for a service too high, they have the option of not using (and hence, not paying for) those services.

          Not everyone can be an (uh-hum.. dodgey) Real Estate Agent, so I consider it to be a special skill! haha

        • tonyjzx on 30/01/2018 - 13:31

          @bobbified:

          My response to that is in the 2nd sentence.

          Also people need to do basic maths.

          Just say you sell your modest unit for $500k.

          At 2% that means they made $10k - I know people are aggreieved that they need to pay $10k to get $490k.

          But you need to take out all the costs like advertising, cutbacks for the licensee, rent electricity car payments, car running costs etc. Oh yeah, 10% goes to the government.

          So you need to sell something like 5 x $500k properties to clear $50k a year.

          Not so easy now is it.

        • smashed on 30/01/2018 - 13:59
          +5

          @tonyjzx:

          Did you just say that it isn't easy to sell 5 x 500k properties to make 50k a year.
          And also that people are aggrieved to pay 10k to get 490k.

          Firstly,
          Selling property is easy. You list it and people will buy it. The agent may use techniques to increase the price by a small fraction, but it will sell anyway.
          In other areas (where I live) the average house is selling for over 1.5M each. That means they need to list a house and turn up for 2 auctions in a year to clear over 60k. That is EASY.

          Secondly,
          They are not giving away 10k of their 490k profit. They are selling to purchase another property where somebody else is also giving away 2%. 2% of a house that has been growing in equity for years , with mortgage rates effectively doubling the actual house price for all those years. And then an agent thinks that it is fair for him/her to take 2% (eg 6 months interest) to just show some people around and do a bit of paperwork.

          Sorry, but this is money for old rope.

          A good agent may improve the selling price etc but don't pretend that it is difficult.

        • tonyjzx on 30/01/2018 - 14:04
          +1

          @smashed:

          there's an old saying, if its easy you wouldnt be here wasting your time on ozbargain

          you'd be out there in an AMG Mercedes making six figures a year and yet here you are…

        • smashed on 30/01/2018 - 14:08
          +1

          @tonyjzx:

          Wow.. You have zero idea what I do.

          Oddly enough I went to an estate agent on school work experience as I had to split my time. I was amazed how smarmy they were and wouldn't ever work there.

          And yes, it is easy. I would walk in and buy a nice property for 2M even if there was no agent in sight. If anything, they just put me off purchasing.

          Being a carer is harder than selling a house.

        • tonyjzx on 30/01/2018 - 14:22
          +1

          @smashed:

          that's fair enough being a carer

          however I'm usually very disrespectful of anyone who puts it out there that everything anyone else does it so "super easy" and anyone can do it

          further to this, I'm very derisive of anyone who says that would buy a $2mil property if only there were "no agents out there because they put me off purchasing"…

        • wordplay on 30/01/2018 - 21:06
          +2

          @bobbified:
          doctors, lawyers, CEOs, teachers, denntists etc… can all drive nice cars and flaunt it because they actually contribute to society and change it for the better. no one is against them making bucket loads of money off of their clients.

          steal estate agents showing off how much they make - and commenting on my 'old banger' when driving around to inspections is nost appealing at all, I wouldn't mind if they pointed out all the failings of the houses they were selling like they did with my car (and the other real estate agents in the area).

        • Sensiekatie on 31/01/2018 - 16:05

          @tonyjzx:

          The agency gets the commission %. The agent themselves only gets a small part of that.

          It varies from agency to agency.

          My son started in commercial last year. That is much more complicated.

      • skillet on 31/01/2018 - 14:04

        If doctors don't buy expensive euros then where do I find my used euros?

  • QW3RTY on 30/01/2018 - 10:51

    Do you think the agents vehicle has an influence in the owners selection process when choosing an agent to sell their home?

    I can't tell if this is honestly your major question with buying a luxury car, or if you're just meme-ing.

    Common sense would suggest that the majority wouldn't give two tosses, and the minority might think negatively of you when walking past the agency and they spy your new 7 series with "REA-MVP" vanity plates.

    If you must buy a new car, why not get yourself a smart, mid-range car instead of buying a luxury car to "fit in" with the other agents?

    • poboy on 30/01/2018 - 11:12
      +2

      Do you think the agents vehicle has an influence in the owners selection process when choosing an agent to sell their home?

      The subconscious answer to this question is 'yes'. We want someone successful to sell our house. But there's a line between financial success and extravagant wealth which may indicate they rip people off.

      I drive a 2011 Volkswagen passat, and was wondering if I should upgrade to a BMW or Mercedes which I'm in a position to buy outright.

      If it's not a significant financial stress for you, then yes - I think it's a good idea to upgrade your car as the step from a Passat to a BMW/Merc is a big step up in branding and therefore success gravitas.

      Mind you, if you get out of the car with a crumpled shirt - or don't great them in a personable manner - all this foundational branding work will count for nothing.

      Good luck.

  • bobbified on 30/01/2018 - 10:53
    +12

    What may help subconsciously is if you have a car that's in the same class as your main types of clients.

    For example, if you're work is generally focussed more in the affluent suburbs where there are lots of multi-million homes, then having a nice car may make it easier for clients/buyers to relate to you.

    However, if you're focussed on the areas where the house prices are more average, then it's probably better to have an average car. You wouldn't want to come across as "more superior" to your clients.

    But the most important thing is, don't live up to the negative reputation that agents already have - always act humble and provide some real service to your clients, regardless of whether it's buyer or seller. Then the car you drive won't be much of a factor.

  • Seraphin7 on 30/01/2018 - 10:55
    +3

    It's reached the point where this is a caricature of the real estate agent. Just drive a decent, presentable, well maintained vehicle (like any professional that needs to drive places) and drop the act.

  • Quantumcat on 30/01/2018 - 11:07
    +1

    Get a cute little VW bug in a pastel colour

    • boomramada on 30/01/2018 - 11:14
      +1

      Like this

      • Quantumcat on 30/01/2018 - 12:36

        Exactly!!!!!
        Nothing screams real estate agent louder than a car like that. (I personally adore VW bugs)

  • theHMASfriendship on 30/01/2018 - 11:09

    Nissan Micra

  • swapsey on 30/01/2018 - 11:14
    +1

    Whatever car you drive don't do what one agent did when taking me in his car to inspect a house for sale…. he asked me if I minded him smoking while he drove.

    I said I did.

    He promptly lit up.

  • grog on 30/01/2018 - 11:26
    +2

    The agent who showed us a few places before we made a choice drove an old nissan sedan that was clean.

    He was not a show-off smart arse.

    Honestly… when i see a really nice very expensive car used by a real estate agent i immediately think of the dozens of poor working class families that dealt with that person that actually paid/are paying for it via past commissions.

    All the show off smart arse exhibitionism used by some agents have zero effect on me.

    • tonyjzx on 30/01/2018 - 12:42
      +2

      end of the day, if you're a buyer then what do you care? the vendor pays the 2.5% - you just want to pay the lowest market price

      if you're the vendor, you're locked into your contracted commission.

      whatever car he drives isnt all that important

      • magic8ballgag on 31/01/2018 - 09:04

        I think grog secretly has something against real estate agents, because at the end of the day everyone has to make a living one way or another.

      • blawler05 on 31/01/2018 - 09:10

        If you are buyer you care, because he might be over inflating the price, which is pricing you out of the market, In order to get the repayments on his fancy car.

        Anecdotally, the best real estate agents I have dealt with all drove different types of VW Golfs. Don't know why.

        • tonyjzx on 31/01/2018 - 10:42

          Yeah but is that realistic in the main cities?

          If you're not buying someone else is… agents can 'inflate' all they want but if buyers are willing to pay the asking price then who's fault is that?

          I get ya though… if you have a place in mind and a budget and someone comes in at $50, $100k over then why is that the agent's fault?

          The market is stupid.

          Further to this, getting a high price although beneficial to the vendor doesnt help that much to the agent.

          Why you say? Let's use my example.

          You have a $500k property. It's $10k commission at 2%.

          Just say he gets $550k for you. This is fantastic.

          So how much extra commission does he make?

          $1,000. Thats it. That's not even a car payment.

        • blawler05 on 01/02/2018 - 08:48

          @tonyjzx: It is definitely not the agents fault. But if the Agent is driving an R8 you might get the feeling he only sells the more expensive properties, and not necessarily look at him. Now if your a seller not a buyer, then the Agents car would also have an impact, the other way. Someone with a R8 i might think he gets better prices. The car a person drives does make an impression whether we want to admit it or not.

          Your extra commission is an extra 10%. That is huge extra. Upscale this to the sydney market (Where I am) and we are talking more like 20K property for the agent. That is good commission if you can regularly sell properties. But here is the thing. During a boom time that is easy. When the market slows down (sydney is starting to show signs) then those commission start to wind up.

          I have worked with some great Agents, and some terrible ones. The great ones are worth every penny they make IMO. I have noticed since the recent housing boom there has been an influx of REA who are not that great.

        • tonyjzx on 02/02/2018 - 18:10

          Let me say that being in the business for two decades I've never seen any agent with anything nicer than an Audi Q7/A8 or Mercedes AMG or Bmw X5 or that sort. And these are the principals who have a team of sales agents feeding commission back to him.

          Be that as it may, you're basing everything on a 'feeling' - do I feel jealous or uncomfortable when the agent ferrys me around in his AMG? Yes, sort of.. but at the end of the day, there's only two things important…

          As a vendor, I need to know what the commission is and if I'm comfortable paying it.

          As a buyer, I want my bid or tender to be served if I feel the property is priced right.

          That's it.

          Nothing else matters. I'm able to overlook my 'feelings' based on the numbers. Apparently many people can't.

        • blawler05 on 09/02/2018 - 10:05

          @tonyjzx: Unfortunately many people cant. That is correct. I guess that was the original point of this post. And because many people cant, it could potentially affect the impression of the Agent.

  • roundnumbersonly on 30/01/2018 - 11:32
    +1

    I don't think you necessarily require a mercedes or BMW, but a sedan that is probably no more than 3 years old and is kept in pristine condition.

  • miicah on 30/01/2018 - 11:38

    G6E or Hyundai Genesis?

  • ESEMCE on 30/01/2018 - 12:06
    +4

    Personally whenever I see someone driving a stupid expensive car I think "I'm paying for that".

    • Quantumcat on 30/01/2018 - 12:37
      -1

      Similar to when you see lavish prime-time TV ads for a financial services company —- they don't make you rich, they make themselves rich first (so they can afford such ads)

  • tonyjzx on 30/01/2018 - 12:18

    My dad is an agent and has always had a large SUV because chances are some people will come over like, a couple and their old folks and expect a lift to the house they want to inspect etc.

    That's 4 people so a large SUV suits all… PLUS you need to bring signs basic tools and other nonsense.

    It doesnt make sense to buy a super expensive SUV like a Mercedes GL or a BMW X5 as who wants randoms in your vehicle all over your leather etc.

  • tsunamisurfer on 30/01/2018 - 12:23
    +1

    Yes…it's probably wrong but I judge a Real Estate agents by their cars.

    • tonyjzx on 30/01/2018 - 12:39

      it swings both ways… if you're a john mcgrath in double bay then you know the answer, you need an A7 or GL whatever.

      but you know you're gonna get soaked but maybe you're so loaded you dont care

      i went to visit and agent and they had an A6 or A8 or something and i felt they though i was willing to take an $800k mortgage on a $1 mil place (!!!)

      if you're after a modest unit or whatever and the agent has a Ford G6E then you're probably more at ease

      • tsunamisurfer on 30/01/2018 - 12:59

        You are right….a crap car is not really a valid indication of anything.

        A good real estate agent maybe just starting out hence a modest car.

  • JCrown9 on 30/01/2018 - 13:30

    look at it this way…

    Look at those people you are trying to be like who have upgraded their cars. Since doing this has it helped their career in selling more houses? or has it hurt them?

    Based on the above, if your in a position to buy the new car, is the new car going to increase your sales again by X % to justify the purchase still? or would you just be making roughly the same but now with higher operating costs?

  • Larkdord on 30/01/2018 - 13:42

    First thing I would look at as someone else pointed out is the attitude - how humble, modest you are and second would be the commission you are charging, and if all other things are equal and if I had to choose between an agent with a flashy car and non-flashy car I would chose the later.

  • pao2x on 30/01/2018 - 13:49
    +1

    Anything respectable for a car. Not too flashy, try a Lexus. Something that shows success but not wankiness

  • OldBugger on 30/01/2018 - 14:02

    I can't remember the colour let alone the model of the real estate agent's car who I bought my house from. My friend is a successful real estate agent and he gets around in a moped.

  • Oz8argain on 30/01/2018 - 14:13

    The last 2 real estate agents i saw 1 drove a M6 (older guy) and the other one had a porsche 911 (youngish guy maybe in early 30s). Oh also a older lady when a family member was buying their house, she drove a mazda 3 i think

    • Geoff-bargain on 31/01/2018 - 16:38

      i know an agent who fits your 911 description…

  • ihbh on 30/01/2018 - 15:36

    I'm in a position to buy outright

    I suggest you think and plan long term. You've been fortunate to be part of a very long and big boom. Remember, no one rings a bell at the top of the market. When prices start to fall, sales volume (not to mention prices) will drop, and have already, and the next 5-10 years could be pretty tough, if you stay in the game.

    Either way (stay in the game and battle the tough conditions, or leave the industry), it doesn't make sense.

    • tonyjzx on 30/01/2018 - 15:38

      dont buy outright

      there's huge tax benefits to taking out a std. business hire purchase or lease or $1 lease etc.

      your accountant will defintetely tell you cash out front is not a good idea for a business asset

  • askme69 on 30/01/2018 - 18:21

    Since when does anyone get to see a real estate agents car anymore.

    They would do the least work of anyone nowadays.

    • wordplay on 30/01/2018 - 21:12

      i thought they were always driving around - never in the office when you ring with a problem, just get 'send an email'…

    • JIMB0 on 31/01/2018 - 09:05

      One of our local agents puts branding all over their cars. Even on the expensive BMWs.

  • [Deactivated] on 30/01/2018 - 19:36

    buy a ferrari you show off.

  • [Deactivated] on 30/01/2018 - 23:17

    I couldn't care less what the REAs drive.

    All I see when I see an expensive car belonging to someone unlikely to be able to afford one (being able to pay outright doesn't mean much) is their poor understanding of money.

    I am probably one of those fools but… Vroom vroom.

  • [Deactivated] on 31/01/2018 - 09:42

    I have a couple of mates in the RE business and they go through a cycle of making a good commission, buying a flash car, hitting a down patch and having to sell it, and on and on.
    One has just bought a new Merc C63, so I'll see how long he manages to keep it.

  • Azzy on 31/01/2018 - 10:17
    -5

    Not sure of the protocol here, but you don't accept messages, so if your interested…

    Let me know if you're from Qld, I have a better idea than just a new car for you.

    I have the QLD 7 digit Custom rego Plate:

    RE AGENT

    I used to work in Real Estate in Qld, I paid an absolute fortune for this plate, its time it went to a good home.

    regards Aaron

    • LordSydney on 31/01/2018 - 23:02

      Cool story bro.

  • Slippery Fish on 31/01/2018 - 10:21

    Buy a comador bra, we can do skidz in the lunch break!!!

    Manaroooo

  • jhmtaylor on 31/01/2018 - 11:05
    -1

    Hyundai Genesis is about right.

    Luxurious fitout, drives beautifully, looks good. Indicates successful but not too successful because it is an Hyundai.

    I am wary of dealing with any salesman driving a luxury brands because I think I will be leaving too much money on the table if he can afford to drive one of those.

  • Geoff-bargain on 31/01/2018 - 16:40

    Save your cash for a down period - if more people start using purple bricks and the others like them it might be tough times for agents in the future.
    If you are auctioning your property and the market is strong I dont see that agents add much value.

  • kylarstern on 01/02/2018 - 00:46

    As a property investor, none of the real estate agents I've dealt with really drive anything too flashy. Sure, their bosses might drive Mercs/BMWs but the average agents I've dealt with have Mazda's/Toyota'a/Hyundai's and to be frank, none of your clients would really care. Driving a flashy car as an average agent just makes you look like you make way too much off your customers. Unless you actually OWN the real estate business, I'd keep your current daily (the VW Passat is a great car as a daily and as an agent vehicle) and buy a weekend fun car like a BMW M2, Audi RS3 or Mercedes-AMG A45.

  • Illian on 04/02/2018 - 15:16

    I wouldn't trust anybody with enough bad taste to drive a BMW lol. Strangely enough, I would be impressed by a new Volvo, shows good decision making (well, not so much with depreciation but with taste, because those with taste don't care about depreciation).

    • [Deactivated] on 10/02/2018 - 13:49

      I'm not sure that you are allowed to but a Volvo unless you are over 50 years of age and have the reaction times of a Three Toed Sloth.

      • Illian on 10/02/2018 - 16:25

        You're a decade or so behind on Volvos lol, I remember those old ads though 'bloody Volvo driver'.

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