“Oh, you don’t want to buy that home. It’s in a low lying area and is subject to flooding. And, it’s got a lot of other problems. Stay away from that one.” The agent explained to me as if she’d written it down word for word.
We’d just driven by the house and I mentioned that I was interested in that property. Now, I was wishing I hadn’t said anything; wish I kept my mouth shut.
But, too late. She’d planted the seed. I never did look at the property again; never really seriously considered it following that negative onslaught from the agent.
Now, I drive by that house almost every day. You see, it’s two doors down from my house and it’s a beauty. It would probably sell easily today for upwards of $750,000. When I was interested all those years ago, it was selling for the mid $200k range.
Now, here’s something that may surprise you. Remember the agent who “poo-pooed” the house? The one who told me to “stay away.” She wasn’t the listing agent. The home was listed with another real estate agency.
Are you surprised?
Of course not.
But, let me ask you a question … Do you think this same agent would have told me something different if she was the listing agent? Do you think she would have been so negative? Do you think she would have sung a different tune? Maybe even said a few nice things about the home? Maybe left out some of the negative items?
Well, there you have it. One of the big faults in the current way we conduct real estate transactions in Australia …
Your agent is only going to show you properties listed with their agency!
Why’s that?
Because they can’t make any money showing you other agency properties. So, they aren’t going to.
“So, big deal!” You say.
Well, just think of a world where you could go to your favorite agent and see all the properties for sale, not just the ones he or she has? Would that be ok? Would that save you a bit of legwork? Would that be more efficient?
Why would an agent every agree to show other agency listings?
Because they get paid, that’s why. In other words, why don’t the agencies share the commission? If another agency brings in a buyer, share the commission.
“Crazy!” You say.
Maybe, but that’s how they do in the USA.
“We don’t want to do it like they do in the USA!” Someone yells out.
Ok. I agree. We don’t have to. But, what if it makes sense?
We don’t have to take all the ideas from the US but if they’ve got a good one, why not grab it? Why not use it?
And, if something is a bad idea, then leave it alone. Just take the good ideas!
And, I reckon this is a good idea.
Should we take it?