Everyone has an opinion, not all are experts. 01/07/12

The Real Estate industry is a very unique sector. Property is one of the most common discussed topics amongst adults whether it be at a lunch during work hours, a barbecue with friends or even over a few beers at the pub. Although everyone likes to discuss property and to have an opinion, not all are experts.

I remember in 2008 when was listing and selling property in Melbourne’s eastern suburbs, I was speaking on the phone with a potential seller and they had informed me that they are no longer selling as the real estate market had dropped 10% over night! this was news to me and my other colleagues in the office as we had a bit of a giggle around our new found “market knowledge”.

This is just one example of how often the public challenge real estate agents or industry professionals on their views of either market conditions, home values or future market projections, and although nobody has a crystal ball, I think it is fair to say that people working in the real estate industry may have a more educated opinion as to what may be happening in the not to distant future.

The reality is, if you go into the doctor in regards to a pain you are experiencing in your left shoulder and the Dr says it is dislocated, the likely hood of it being dislocated is pretty high and you probably wouldn’t challenge his diagnosis.

I have never understood as to why real estate agents / industry commentators, in many cases are told by people of the public who have no real estate or property market experience what is happening out there in the market and what property prices are doing now and / or in the near future.

Despite what you hear of real estate agents and the horror stories that float around in regards to the industry. Almost all real estate professionals are out there to help guide people, whether they are home buyers, investors or sellers through a very complex and fluctuant market.

Next time you are looking to make a property transaction, make sure you speak with the professionals even if it is for some quick free advice. You will find that most of the agents out there will have a solid understanding of what is really happening in the market, particularly in their immediate area of operation.

Real estate and property is a serious business, and although there are articles for all to read on the internet / paper the bottom line is, the professionals in the industry have a far better understanding of what is or isn’t happening in the real estate market.


Sam Rapke

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6 Responses to this article

 
Mehron July 2, 2012 Reply

Great article Sam it’s 100% correct what you are saying lot of people become experts when it comes to real estate but the doctor example you used is very true. 

 
Sam July 5, 2012 Reply

Great Article Sam. With all the very un-happy consumers out there, generally due to listening to what agents tell them when the Agent themselves is contratually obliged to look after the Vendors best interests, Id say another anaology similar to the Doctor one would be ” yes everybody knows how to buy a property just like everybody knows the law, however if a consumer needed to go to court they would engage a lawyer. Why is it that most people dont engage a professional buyers advocate to help them purchase property? Somebody looking out for their best interests. Vendors are represented, Buyers deserve to be too!

 
 
Sam Rapke July 5, 2012 Reply

Hi Sam,
Thank you for your comments. Yes I agree, The purchase is just as important (if not more important) than the sale so professional representation makes a lot of sense. As you would be aware, between 80 – 90% of buyers use a property advocate in the UK. However only about 4- 7% use one here in Australia. I feel more people are clueing on to this and buyers advocacy is certainly a growing industry.

 
Justin Dunne July 5, 2012 Reply

Having been a selling agent for 12 years and a buyers advocate for 8 this article comes across as naive to me. Most residential selling agents will tll you what they want you to hear in order to get what they want. Real estate is not rocket science. Don’t understimate the knowledge of the public. They have access to just a smuch information as agents do and know how to interpret it.

 
 
Sam Rapke July 5, 2012 Reply

Hi Justin,
Great to hear your thoughts! I can agree with some of the points you make here. I also have a similar work history, starting my career as a sales agent and moving on to buyers advocacy a number of years ago. I can’t agree with the statement ” agents only tell the the public what they want to hear to get what they want”. I have met many agents and worked alongside some top performing agents who have in fact made suggestions to potential vendors to hold off from putting their home up for sale due to market conditions. I also do not agree with the statement of the public having just as much access to information. As im sure you would agree, Agents have specialty programmes they are given access to to determine market value and generate market reports, information that is not available to the public. I certainly do not underestimate the knowledge of the public, or their ability to interpret the information they are given / read or hear about on the news, I do however question the publics ability to make sound judgements on the performance of the market when a lot of the available information is heavily one sided. After all, it is the public who engage individuals such as yourself to gain a further understanding of the market place to ensure better decisions are made.

 
Garry July 5, 2012 Reply

Interesting feedback so far. I might just add a couple of points though. I believe Sam was originally talking about general market information, not specifics related to a singular transaction. If you were to ask the selling agent the price of the property HE was selling what do you think the answer would be? However if you asked them the general price of a 3 bedroom property in the area you could rely on their feedback to a point.
Secondly, the discussion above is more about negotiation based information, not market information. When it comes to a negotiation, your position is strengthened by obtaining INDEPENDENT information. Market information is the stuff you chase when looking to do preliminary general analysis, and a real estate agent is a great source of information here.
Finally the discussion of using a buyer’s agent, or relying on the selling agent for information. It’s the real world guys, you ONLY get what you pay for and consumers don’t see the need to pay for an experienced buyer’s agent in a lot of cases. The fact that buyer’s agents are doing the same transaction day in day out, where the average consumer does maybe 2 or 3 in a lifetime doesn’t quite Gel with the public at the moment. Its not until you have experienced how well a transaction goes with a licensed agent on the buyer’s side, that you see the value in the service.
So for what it;’s worth I tend to agree with Sam that agents can be a great source of general info, so use them. But if you are really looking to buy right, and that’s when you MAKE your money then dig deep and pay for professional representation.The returns far outweigh the cost.

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