It is a common perception that real estate agents are not trustworthy and will do anything to get a deal across the line.
First of all this is not true but because of this perception we are the most heavily legislated and most watched industry in Australia, with over five government departments keeping us in check.
Most real estate agent’s although they won’t admit it, just want to do their job to the best of their ability and make money without getting sued or fined.
If anyone does break the rules, they are normally caught immediately.
Problems can easily be picked up by a trust account audit.
The buyer hot list
Because it is a tough market for buyers we constantly have people missing out on properties.
They do their best to try and become friends with us and think that we will risk our sales license to give them an amazing deal.
When this doesn’t happen buyers seem to think that we have an inside club that we only sell good deals to.
Don’t get me wrong we do have hot lists but they’re certainly not made of friends and family.
They usually consist of cashed up easy to deal with no nonsense property investors, developers/builders and renovators.
Buyers don’t realise that there is a catch if we sell properties below market value.
If we do this sellers will start to think that we sell properties too cheap, and therefore don’t want to sell their house with us.
If we don’t have properties to sell we lose our reputation and the ability to put food on the table.
We do our best to work with both parties but at the end of the day we have a fiduciary requirement to work in the best interest of the seller.
If we don’t do this we can easily be taken to court, fined and possibly lose our sales license.
Believe me this does happen.
A day in the life of a real estate agent
Real estate agent’s spends most of our working life looking for properties to sell trying to meet our targets to feed our mortgage.
We spend many hours late into the night SMS, calling, emailing, and even door knocking trying to find that next listing that is going to put them on the map and help them build their profile.
Basically our lives involve prospecting, prospecting and some more prospecting.
Our lives revolve around meeting targets
Believe it or not the average wage for a real estate agent is about $48,000.
We have to meet our targets before we get paid our wage let alone make extra commission.
Every day is an emotional rollercoaster.
Funny enough we have a lot of people that actually like to lie to us on a daily basis. Some of us have grown large egos to handle the rejection.
This helps us bounce back when people say they are going to give us their property to list for sale but then we wake up in the morning, switch on our computer and see that it is listed with one of our competitors.
This is one of our pet peeves as we normally hate our competition, especially if they have “bought the listing” (agent quoting a high price to get a property listing).
We go to sleep thinking about where our next listing is going to come from.
We live and breathe real estate, there is no such thing as time off for us.
By understanding the psyche of a real estate agent it will help you communicate better with them.
How to get onto real estate agent’s hotlist
- Trust — do what you say
- Remember their name
- Remember what house you saw them at
- Ask them many questions “they love to show off what they know”
- Ask for their opinion
- Don’t be a know it all — be humble
- Ask to be on their mailing list
- Call them up and talk about their sales
- Help them out –send them a selling lead
- Give them your real address, mobile and email (contact them if information is not coming through)
- Make an offer
- Sell a house with them
- Help them sell your property with paid marketing
- Send them a memorable gift if they helped you
- Give them a testimonial
A real estate agent’s ego and sense of worth is attached to their commission.
If you pay them standard commission with a bonus, not only will they love you and work like crazy, they will feel like you understand them and appreciate all the years they have put into themselves.
Besides, if they found you a good deal with profit in it, why not reward them as an incentive to bring you more.
There are a lot of advantages of having the best agent in your suburb on your side.
Hopefully I have given you enough insight to understand where we are coming from and change your perception of us.
If you apply these tips it will help take the bumps out of your property journey.
SUBSCRIBE & DON'T MISS A SINGLE EPISODE OF MICHAEL YARDNEY'S PODCAST
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
PREFER TO SUBSCRIBE VIA EMAIL?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.