The misconceptions of the real estate industry: Alain Warisadi

EXPERT OBSERVATION

The real estate industry is a rewarding and fulfilling industry to be a part of, whether you are an agent or a property manager, with real estate agents commonly working around the clock in order to get the highest possible return for a property.

Despite the hard work of many real estate agents, research indicates that there is a lingering negative perception of the industry, with only seven per cent of Australians rating the profession as either ‘high’ or ‘very high’ for ethics and honesty, the third lowest profession out of 30 surveyed.

Broadly speaking, the negative perception of the industry stems from a lack of trust between customers and agents, but there are steps that agents can take to improve the overall perception, and build trust with clients along the way.

Myth #1 Property managers do not care about the owner's property

Property managers are often perceived to only contact tenants or landlords when there is money needed, but a crucial role of the property manager is to ensure that a property is properly maintained.

This involves the management of all financial components involved, including rent and any additional expenditure that is needed for maintenance. From the owner’s perspective, expectations are that a property manager will look after their property and keep it in the best shape possible, but when repairs or upgrades are needed, owners can often be difficult to contact when money needs to be spent.

It can be a challenging job for property managers to act as the middleman to control the variables that are beyond their capacity, as there are regulations that agents must follow and comply to.

This is where regular communication with clients is a must; being confident in your knowledge and experience will filter through to a client feeling more comfortable that the property is safe in your hands. And when it comes to having conversations about additional expenditure, clients will trust that their money is being spent for their own benefit.

Myth #2 Real estate agents make a profit from the marketing fee for a property campaign

Marketing should be considered part of the investment when selling or leasing a property, as any proposed marketing tool is for the sole benefit of the campaign, but one of the most common misconceptions is that real estate agents profit from the marketing. Every dollar used for marketing materials or tools is put towards promoting a property in order to gain more exposure and better results.

A common expectation is that an agent should cover the marketing costs, all whilst selling the property for the highest amount within a short period of time.

According to a recent survey undertaken by Pureprofile, over 90% of vendors have unrealistic price expectations. If this situation arises, it’s the property managers duty to inform and educate the client in order to set up realistic expectations from the get go.

Myth #3 Real estate agents and property managers are dishonest

All real estate agents and property managers are legally bound to be honest and provide correct information without bias. An agent should never offer limited or incorrect information to clients with the expectation they would gain the business or deal.

The increase of online rating systems such as RateMyAgent and OpenAgent are instrumental in encouraging complete transparency, as any dishonesty or poor service will be exposed for all to see. These systems also provide real estate agencies with the opportunity to continuously improve their system and practices.

At the end of the day, each agency is responsible for its own agents and educating them on best practice. This not only includes legal requirements, but how to effectively build trust with clients, while managing expectations along the way.

Alain Warisadi is a Licensed Estate Agent and the General Manager at Xynergy Realty