A recent report has revealed that Australians continue to view real estate agents as unethical, and with a number of reports of unethical or deceptive practices making their way into the news, honesty in real estate is becoming a more prevalent conversation for consumers.
Alain Warisadi from Xynergy Realty said that although there are a handful of untrustworthy agents who partake in unethical practices, the majority of agents are doing their job correctly and with the client’s best interest at heart.
If you believe you are being taken advantage of, Alain said there are common warning signs to spot early on and offers his advice on how to best address concerns.
Real estate agencies need to set realistic expectations.
Each agency and agent has their unique ways to meet the expectations of their clients, but Alain said expectations should be an open discussion that occurs at the beginning of each engagement.
”These expectations need to be made clear and agreeable for both parties, therefore having an understanding of expectations and what’s achievable is essential prior to any engagement.”
Alain said a common example is when a vendor has the expectation that an agency will sell their property at the highest dollar amount but with the lowest marketing cost.
"A candid agency should communicate this information at the beginning of an engagement so that a vendor has a realistic idea of how much more they would need to invest in their campaign in order to gain more exposure and better results.
“It’s also good practice to get a second opinion before you sign an agreement to ensure there are no empty promises or unrealistic expectations set.”
In order to prevent and mitigate any dispute that could occur in the future, an agency needs to effectively communicate the agreed services to a vendor and all further steps should be formalised in a written document and be signed by all parties involved.
Follow all legislation and guidelines even if it is against the customer’s request
Real estate agencies and agents have obligations under the acts and regulations to deliver services accordingly, and there are government rules in place that are widely known to protect customers that agencies also need to follow and abide.
“In the rare occurrence, an agency or agent may attempt an unethical shortcut if there is a decision or an outcome from the business process that would not satisfy the expectations of a customer.
“A vendor may expect an agency to do something that is breaching the law but agencies need to advise consumers of the regulations and situations for each particular case. As much as an agency would like to provide 100 per cent customer satisfaction, there are still certain conditions that cannot be legally addressed,” said Alain.
Full disclosure of information to customers
Although there are regulations in place to prevent unethical and misleading practices in the industry, unethical practices are usually uncovered when an issue comes to the surface.
“For example, agents are required to disclose all information pertaining to a property, even if such information is likely to affect a customer’s decision. This can include not informing of any damages the property has experienced, or the property’s history, for example, if someone has passed away in it.
“From the customer side, if a vendor believes or is uncertain about any matters, they should ask for further information to clarify the issue through Estate Agent Resolution Service (EARS) or Consumer Affairs Victoria (CAV) as the first point of contact.
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