What is needed in the Real Estate Industry is Property Vendor Power!

Barry Osborne

Property_Vendor_PowerNow I am a part of the Real Estate Industry and it disappoints me greatly to see articles written in the top papers such as last week’s Weekend Australian like “Agents in auction-pricing ploy”. This was written by Rick Wallace. As I have stated in the past, I have a long seated dislike of the Auction system from my country days but it is not so much because it is a form of selling, but more because it is pushed by the Industries whether Rural or Real Estate as the only form of sale worth considering. But the question is “Who is it in the best interest of?” It is very interesting that if you are talking to Real Estate Agents or Industry bodies they are all in favour of it and even at the real estate course, you seem to be fed that it is the ideal method of Sale. But talk to the general public and you seem to get a total different story.

It is in the southern capital cities where the Auction system has really taken control as the preferred method of sale but not so much in Brisbane, thank goodness. But that would not be the case if the agents had their way. The article that I mentioned above states that “Data from property pricing app realAs shows that underquoting of properties going to auction remains rife.”


The games people play which is the real problem as to why Real Estate Agents have such a bad image.

The article goes on to say “Real Estate Agents in popular Melbourne and Sydney suburbs routinely underquote by up to 30 per cent, new research lifting the lid on one of the Industry’s dirtiest secrets has found.” In considering this as an issue, it is fortunate maybe that Queensland Legislation now stops agents from discussing price ranges with properties going to Auction and stop this sort of practice. But there is also the other practice of conditioning the vendor who has unrealistic expectations, and allowing the auction to bring them back to reality. However, I am definitely not in favour of this strategy by the Government because I prefer that all information is freely available. But consider, the issue for the poor buyer going to buy a home with a guess as an idea to the price of the property. No wonder in Queensland the Clearance rate for auction properties by RP Data is always in the 30%s. Yet, many vendors are being convinced to take their property to auction and spend large marketing budgets to promote supposedly the auction that only 1 in 3 will sell at.

But my feelings are that the issues can be easily resolved by simply the vendor becoming more informed about various practices and they taking more control of what is happening to their property. So I am in favour of The Australian in publishing such articles. I think that maybe many of the real estate vendors are not good at deflecting the good salespeople who are very convincing. But the real facts can easily be researched by anyone on Google. People have gone to even now checking everything a Doctor (the real Gods of our Society) says to them by going onto the internet so they can cross examine their doctors on what they are being told. So why is it that the Real Estate Salesperson is getting away with so much? The real issue is that a lot of the information in this industry is being withheld or made difficult to find, like having to phone someone. Very backward compared to other industries.

But if we just stood back from the situation we could very quickly understand who were really in control?

Of course, the Vendors are and should now demonstrate their property vendor power.They own the properties and they are the ones who decide who gets the gift of selling their property. What other industry is there where you don’t even have to buy the stock you sell? Worse still, are then asked to pay for the marketing to sell it. There is no other industry like it. The important thing is not to be taken in by the good sales spiel. You need time to think and research and if a Salesperson is insisting on signing now .... then don’t. Take your time to research the market and talk to a number of agents and particularly some of the new ones who wish to be different. You, as the real estate vendor, are in the controlling seat.

Vendors deserve a better deal and the way to achieve that is to ask some of the new innovative agencies to quote on doing the sale. You may be pleasantly surprised as to the cost and more importantly as to their creativity in marketing real estate and for your property to gain the exposure it deserves.