Would You Support a Royal Commission into The Real Estate Agent Industry?

Trying2SaveABuck on 01/06/2019 - 12:23
Last edited 01/06/2019 - 12:24

I've seen enough under quoting, blatant lying and shifty business to warrant a inquire… but have others?

I think on both the sales and property management side the Real Estate industry has basically become incredibility untrustworthy

Laws on under-quoting etc have not been effective in stopping the blatant unethical and at times illegal practices in the industry….

I actually know agents that have sold properties to family, friends and developers at less then it was worth even when higher offers were given they didnt pass them onto vendors because they got a 'kick back'

I know and have be subject to essentially lies about properties… example being 'block size' ive literally seen houses advertised for 400sq (Approx) land and in the contract it was under 350sq…..

Would you support a royal commission into the RE industry?

Why or Why not?

Poll Options

  • 110
    Yes - i would support a RC into the RE industry
  • 25
    No - We dont need a RC into the RE industry
Home & Garden

Comments

  • A M on 01/06/2019 - 12:49
    +4

    In banking, resources, and politics also.

    Fat chance though.

    Or, it will be a toothless waste of time like the recent Banking RC.

    I think the crash to come will be the best we can hope for, regarding reform in that sector. So far we don't even have a proper approach to the whole 'towering inferno' flammable cladding situation. Nor the deathtrap towers that weren't built to standard and are crumbling within years of completion.

    Someone will be out of pocket by tens of billions, at least. My bet is that once again those costs will be socialised.

    Australia: Corrupt Top2Bottom (how's that for a ~3 word slogan?)

    • Diji1 on 01/06/2019 - 16:18

      In banking, resources, and politics also.

      Fat chance though.

      Didn't we just have a banking inquiry that found the banks are large scale criminal operations?

      You are right though in that based off past behavior there will be a "cost of doing business" fine, no one will go to jail and the illegal operations will continue because they made considerably more money than they lost.

      If you or I laundered $700 million dollars for drug dealers and terrorists we would recieve a long prison sentence and a fine that would bankrupt us for the rest of our lives. If you're the Commonwealth bank you get a cost of doing business fine as the government continues to guarantee that the business will never fail using tax payer dollars.

      This is your fault if you voted Labor or Liberal.

      • A M on 01/06/2019 - 16:57
        +2

        I didn't vote for either major party. But the nature of our system means you can't help but indirectly vote for them. Nice little racket they have…

    • Roney on 02/06/2019 - 20:47

      Car, travel insurances. Not surprising how unscrupulous these they can be with their 'fine print' interpretations.

    • realestate on 27/05/2020 - 10:32

      Hi I came upon this thread after searching the premise in google today. I have actually launched a petition in the past 2 weeks and intend garnering 10,000 names, which are all being submitted to the Housing Minister, several other politicians and the ACCC. It's time for a big shakeup in australian real estate and I would hope everyone in this thread will add their signatures to this online petition - www.realestateroyalcommission.com

  • whooah1979 on 01/06/2019 - 13:06
    +11

    Why or Why not?

    No. Spending $50m on a royal commission is a waste of taxes.

    • [Deactivated] on 01/06/2019 - 13:13
      +4

      Exactly this.

      Spending $50m to confirm what everyone knows to be true doesn't make a difference.

      There are laws already in place to prevent the issues you mentioned but they are not enforced and people do not do their due diligence/report the REA.

      The banking commission was a similar waste of money.

      Royal Commissions do not change anything, it is purely investigative.

      • Diji1 on 01/06/2019 - 16:19

        Spending $50m to confirm what everyone knows to be true doesn't make a difference.

        You didn't know jack about what the banks were doing and here you are saying you'd rather not know like a fool.

        • [Deactivated] on 01/06/2019 - 16:56

          I didn't?

          • kahn on 01/06/2019 - 19:12
            +6

            @[Deactivated]: It matters very little what you, as an individual, claim to know. The issue is making all the suspicions of illegality and unethical behaviour public and undeniable. It's the same issue with many of the Wikileaks revelations. It's easy for an individual to sit back in his/her armchair and say "oh yeah, I always knew about that" but without proof in the public domain, another person can just as easily label you a conspiracy theorist and point to plausible deniability.

            • brendanm on 02/06/2019 - 13:44

              @kahn: And what came of it? How many people went to jail over blatant fraud?

        • Changskies on 01/06/2019 - 17:12
          +2

          Everyone knew who were in the industry, knew by whom worked in the industry, or being curious. It was a waste of money and an ultimate slap on the wrist compared to what they've done. Hard for you to say diji

        • brendanm on 02/06/2019 - 09:32

          Everyone knew what the banks were doing. What has changed now? Absolutely nothing. They got away with it all. In a couple of years they'll be doing exactly the same things again.

          • MrBear on 03/06/2019 - 10:14

            @brendanm: I didn't know everything the banks were doing and only found out through the royal commission.

            Also, people "knowing stuff" and evidence stated under oath are very different things. One of them can have consequences and not the other.

            • brendanm on 03/06/2019 - 10:17

              @MrBear: So what were the consequences? How many people are going to jail for fraud?

              • Cliche Guevara on 03/06/2019 - 12:54

                @brendanm: That wasn't the goal of the RC. Banking practices have been changed and some people have seen refunds in their accounts. I think that's a pretty positive outcome. Not all outcomes have to be punitive.

                • brendanm on 03/06/2019 - 13:02

                  @Cliche Guevara: What would happen to me if fraudulently took millions of dollars from people?

                  You say things have changed, but they are now talking about lower deposits to 5% for first home buyers, and lowering the "worst case" interest rate so they can borrow more. That won't end badly at all haha. Give it a couple of years, it'll all be the same as it was.

              • MrBear on 04/06/2019 - 08:55

                @brendanm: I said "can"

      • nomoneynoproblems on 01/06/2019 - 20:06

        If everyone knows, where is the accountability? The whole point of a royal comission is to investigate, yes, but you don't cross your arms in a circle and frown once it's said and done.

        It should happen to put these scum bag real estate agents to the sword.

    • realestate on 27/05/2020 - 10:35

      Hi, i understand your frustration. It is very hard to get change occuring especially when the largest real estate website in australia is owned by the largest media conglomerate as well. This means teh company at the heart of the problem also controls the narrative almost totally and the same goes for the number 2 site which is also owned by the second largest media group.

      If you think anti-competitive behaviour cant be amended because of the power centres that are in place then just remind yourself about the Telstra Monopoly and what the state of play is today. Please give change a chance before thinking it cant work - www.realestateroyalcommission.com

  • [Deactivated] on 01/06/2019 - 13:06
    -5

    Pretty good chance that would send house prices tumbling, damaging the victims.

  • ihbh on 01/06/2019 - 13:20
    -1

    under quoting

    In a bull market there's a reasonable chance of under quoting. Is it still the case in this market?

    You can't design draconian rules to protect silly unsophisticated people - e.g. haven't been to a couple of prior auctions to find out that there could be some under quoting.

    sold properties to family, friends and developers at less then it was worth even when higher offers were given

    Were the properties advertised? Were the offers made on time?

    There's some contradiction in underquoting and selling for less than worth, but I realise they would be different situations.

    houses advertised for 400sq…

    You can quickly see the land size on the RE portals.

    • Trying2SaveABuck on 01/06/2019 - 17:53
      +3

      I dont only talk about Melbourne

      • House in Williamstown in the mid 700s to 800…. bidding hit 870 and they still where not 'at market' one bidder lost his shit and has reported the agency then property got passed in … tho im pretty sure the agency will get fined but they should have there doors closed for 12months

      • I know a agent in altona who sold a property to family member (i suspect) for 650k telling the vendor there wasnt much interest i know a guy who said he offered 700k for the same property

      • as for land size it should be ADVERTISED as said in the contract! no a square meter different

      these things have all happened in the falling market over the past 3 months….

  • buckster on 01/06/2019 - 14:06

    Not sure anything would come from it that could be useful for us moving forwards - i.e. underquoting now suffers fines and no RC was needed to cause that.

    • realestate on 27/05/2020 - 10:38
      -1

      Hi Buckster, something will come from it. I know because 14 years back i fought REA to force them to take agent assisted private sales. It was super hard and the REA almost won the day but in the end the ACCC saw it our way and REA folded in that endeavour. Please get on board - www.realestateroyalcommission.com

  • brendanm on 01/06/2019 - 14:42
    +9

    How about a royal commission into how many royal commissions we have?

    • bdl on 01/06/2019 - 17:54
      +3

      Incept-commission

  • bdl on 01/06/2019 - 15:24
    +1

    They'd find a lot of hot air and emptiness between the ears of most real estate agents

  • poohduck on 01/06/2019 - 16:13

    royal commissions keep a few academics wealthy and are a short term panacea for the masses. Embarrass a few scapegoats then back to business as normal. Do real estate agents actually catch anybody out? The bad ones seem a bit too obvious. I've met some good ones I'd listen too - the others I just don't accept anything they say which makes them kind of pointless.

  • Traveller107 on 01/06/2019 - 18:21

    Absolutely but not sure if it would make any difference! I deal quite a lot with REAs and am yet to find one who is not dodgy.
    Have made unconditional offers for properties only to see them sell for a Lot less eventually.
    Have seen old people's properties being undersold heavily to agents friends and families.
    And worst was when an agent asked me how I could 'sweeten' the deal for him if he gets me an old widows property at a seriously cheap price.

    • poohduck on 05/06/2019 - 18:50

      those dudes, who who sell cheap to friends and family, should simply go to jail.

    • realestate on 27/05/2020 - 10:41

      Hi traveller107, there are rock solid alternatives to traditional agents now. Regardless of whether you use a traditional agency or sell your own home, the problem at the core is the pricing policies and control of realestate.com.au. We need to force the government to claw back that power or to fund competition. The monopoly must go and you can help right here - www.realestateroyalcommission.com

  • JIMB0 on 01/06/2019 - 19:42

    We need one on price jacking and dodgy promotions.

  • nfr on 01/06/2019 - 20:45
    +4

    No, real estate agents are guardians of the Australian economy. It is my dream to see everyone becomes a real estate agent so we could trade houses all day. Imagine all the commissions we will make if we all do it together.

  • loropy9 on 01/06/2019 - 21:25

    Actually, come to think about it, I kind of like those movies where the good looking real estate agent is showing the house to that also good looking buyer… If they can add a scene like this, then yes, I'm all for the commission. The royal one.

  • ghoulie1 on 02/06/2019 - 08:02
    +1

    A RC into overseas money laundering through real estate would be very interesting. RE is one of the few industries where amounts of cash over $10k isn't tracked.

    • A M on 02/06/2019 - 18:20
      +1

      The 2nd tranche of the Anti-Money Laundering measures/regulations/laws have been sitting in draft form at the epicentre of corruption in Canberra for over a decade.

      They would have targeted non-banking sectors like real estate, lawyers, other white collar criminals, etc. We're one of the few western nations that has not enacted such laws, since it is such an easy way for money to be laundered (countering terrorism was the motivation, for tranche 1).

      Such measures would have also shut down the real-estate ponzi like a kill-switch. Still waiting for a response why they've been sitting on it for so long, from my recently re-elected local rep.

      There are some good articles on the topic at MacroBusiness.

    • poohduck on 05/06/2019 - 18:59

      you'd have to include our government too then - they're supporting the Chinese economic colonisation of australia https://www.weeklytimesnow.com.au/agribusiness/decisionag/ch…

  • [Deactivated] on 02/06/2019 - 09:42
    +2

    Yes, I want to know why no real estate agent has eftpos facilities for rental payments. KTHXBYE!

  • panorama on 02/06/2019 - 10:06

    Yes the Lawyers need another round of huge money, they just love royal commissions it's like sharks at a feeding frenzy

  • Peck on 02/06/2019 - 11:44
    +1

    Real Estate Agents are Used Car Salesmen In more expensive suits and handling assets worth huge amounts of money. Their industry should have been included in the Banking Royal Commission.

    • realestate on 27/05/2020 - 12:03

      I think you make a valid point Peck. I am an agent and I would agree with you. Having said that, there are plenty of good agents as well but here is the rub. If you are a good agent you must still operate within a poorly constructed industry.

      I liken it to being a good person ( lets say wearing a white suit or white dress ) and you then dive into a dirty river ( work in the real estate industry )

      People think agents control real estate but who controls the controller? The answer is realestate.com.au and who majority owns that? - new limited. Agent - portals - media - monopoly. The result is rampant price gouging on a level not seen in any other industry I know of with the possible exception of a pharmaceutical company or two. Please add your own name for a vote to have a royal commission into realestate.com.au , here - www.realestateroyalcommission.com

  • HeWhoKnows on 02/06/2019 - 13:52

    Almost all Royal Commissions are a total waste of tax payers money.
    Look where the banking royal commission got us.
    Like most other RCs…Nothing. Zip. Zero.
    Who got any benefit from this RC? nobody at all!

    The banks are now going back to their old habbits.
    Wont be any different with any other one

    • Trying2SaveABuck on 02/06/2019 - 14:04

      Well besides the billions in dollars they will pay out from all the class actions against the banks and insurance companies like AMP? also the giant amount of awareness people now have that banks cannot be trusted with your livelihood in super and life insurance…

      ALSO we learnt that ASIC was asleep at the wheel and was clearly littered with corruption

      Also the Mortgage brokers where basically in league with banks to rip off people for GIANT bonuses and trialling commission $$$$ thus the industry has been completely transformed

      These changes may not seem like much to the lay person but they are huge!

      Sure we all wanted the banks to bleed more but without the RC dead ppl would still be paying fees, regular ppl would still be getting ripped off and the community would be non the wiser….. believe it or not the hit to the reputation of the banks is a giant cost to their credibility - hence why Westpac is putting this moronic ads on tv to repair their image

    • nfr on 02/06/2019 - 15:24

      I see it as a costly but worthwhile educational exercise. The RC generated publicity about the banks' dodgy practices, now we got all that sh*t on record. If consumers fail to learn from this new information, of course banks will have no incentives to change. That's not RC's fault though. Just because people are stubbornly retarded doesn't mean we should give up on education.

    • brendanm on 02/06/2019 - 17:03
      +1

      The lawyers probably did alright, they are out there buying waterfront property right now with the proceeds.

  • afah0447 on 02/06/2019 - 20:13
    +1

    There are no laws against being greedy bastards.

    People have to realise you don't have to use a real estate agent to buy/sell property.

    Morons and idiots will always be taken advantge of by the informed. People just need to smarten up.

  • myusername on 03/06/2019 - 11:38

    but what do you expect out of it?

    i mean like the royal commission into banking did sweet f all honestly.

    the Wood Royal Commission into pedofiles found a great deal of dirt only to be slapped with a 90 year suppression order by John howard

  • thebathlagroup on 03/06/2019 - 20:59

    Cross-party supports in building for the royal commission into the financial industry. We should build on it for every year to come and we should also maintain the same. With this, we will be supported to keep working as we do.

  • mrshorty on 29/01/2020 - 17:43

    If the royal commission found a lot of dirt in banking, they would have a gold mine if they did one in real estate

    Funnily enough I would feel like a royal commission into real estate industry would be as important than one in finance industry. After all the Australian dream is buying a property and is one of the biggest investments an aussie would make

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