For some people, stepping into the real estate arena feels like stepping into the Colosseum with lions on the loose. When you are about to buy or sell your most important asset, conducting the transaction amongst contradictory advice and other people’s vested
interest is daunting.
It does beg the question, ‘Who can you trust in real estate?’ As a follow up, it’s also worth posing the question, ‘How will you select the right agent to work with?’
If you trade in real estate with regularity, you should have a better idea on how to conduct these transactions. Nothing replaces real world experience. Being able to trust your own judgment and knowledge due to experience, is an earned luxury.
However, if you lack regular experience in real estate, you may find yourself on a tough journey to work out how the game is really played. What surprises most people is the time-consuming element of buying and/or selling. It
can almost seem as though you have a second job.
If you are time poor, you will almost certainly be making decisions on the run, hoping that it turns out well.
Transacting real estate in this way can be a big mistake.
Different people take many different paths when selecting someone to trust in real estate. Some will select an agent who was referred by a friend, others will base their agent decision on the agent’s website, whilst others may conduct an exhaustive interview process. A lot of people still rely on the old ‘gut feel’ to decide which agent to work with.
When buying or selling real estate, it’s imperative to ask the tough questions upfront. Asking tough questions after you are partially or totally committed can be fruitless.
For example, as a buyer, you should ask the agent to justify their price guide with comparable recent sales, prior to investing money in due diligence.
If the price guide is $1 million and the recent sales evidence suggests $1.2 million, there is little point in turning up to bid $1.05 million on auction day.
As a seller, ask the agent why you have to pay their advertising bill if the auction fails to meet the price they quoted you. Ever since the First Fleet arrived, real estate agents have been over quoting to vendors. No surprises there.
However, vendors continue to invest thousands of dollars on the agent’s advice in the expectation of receiving a certain price.
When that price doesn’t eventuate, the vendor is left with no recourse or ability to hold the agent to account.
Agents who stand behind their promises are possibly worthy of your trust.
If the real estate market feels like a colosseum to you, do your due diligence before transacting.