Do you trust real estate agents?
According to the latest Governance Institute of Australia Ethics Index, real estate agents are the least trusted professionals in Australia. Unsurprisingly, real estate agents passionately disagree.
Australia is currently facing a mass housing crisis and no one is safe from it. The cash rate now sits at 4.1 per cent, the highest since 2011, and data from property valuers PropTrack shows rental prices went up by 13 per cent over the last year.
Aussies are more vulnerable than ever when it comes to housing, and they clearly don’t trust real estate agents to look out for them during these trying times.
Braden Walters is a Byron Bay real agent who takes issue with the assumption people in his profession are untrustworthy.
Mr Walters says he doesn’t “love” real estate agents, but does love what he does. Not exactly a glowing endorsement of his fellow colleagues, but that doesn’t mean he is turning the back on his entire profession.
“There are really good ones,” he insists.
Okay, great.
“And some that ruin it for the rest of us,” he admits.
Mr Walters can definitely see why real estate agents have been slapped with the “untrustworthy” label. Ultimately, they are dealing with most people’s most significant assets, and a mistake can cost people everything they’ve ever worked for.
“You can ruin someone’s life. An agent can do a lot of damage in one go.”
There is also just the reality that real estate agents typically like to present themselves in a flashy way.
Fancy cars, expensive suits, a nice watch. It’s an industry that can lend itself to workers feeling like they must perform.
“I think real estate agents can feel like they have to act like someone else. Agents can try to come across like the slick guy or act like they are more successful than they are, yet being genuine actually works best,” he explains.
Although Mr Walters is happy to “take the mickey” out of himself and his profession, he also wants to clarify that thanks to compliance laws, things have changed.
“You can’t be a rogue real estate agent anymore. We are so watched, and if you try and do something wrong, you’ll be heavily penalised for it.”
Ultimately Mr Walters says while he can see why people get the wrong impression of his industry, he has faith.
“I’d say the majority of agents that I know are trustworthy.”
Mat Steinwede went from being a homeless drug addict on Australia’s Most Wanted List to amassing a multimillion-dollar real estate empire to become one of the country’s most successful agents. He understands the power of labels.
Mr Steinwede explains while he thinks the industry is “changing,” he can see why the “untrustworthy” label gets thrown around.
“It is changing, but the lack of training in this industry is unbelievable,” he says.
Mr Steinwede says people being untrained results in agents not being equipped and failing to realise that “transparency” is key.
“You get people that join real estate with low skills in emotion, negation and handling people’s money,” he shares.
This can create ongoing issues.
“I’ve seen agents say one thing to an owner and a completely different thing to a buyer, creating a trainwreck.”
Still, Steinwede is optimistic about the future of real estate and thinks there is “drastic change” for the positive on the horizon.
Douglas Driscoll, CEO and owner of boutique agency Starr Partners, says while he understands the knee-jerk reaction to laugh off a survey calling real estate agents “untrustworthy,” he thinks it’s a serious issue his industry is facing.
“Is it fair? No, but it is something we have to deal with.” He points out.
In fact, Mr Driscoll thinks the whole industry needs to work “harder” to change the popular opinion.
“The public’s perception of us is ultimately our reality.”
Still, Mr Driscoll can understand why it is an enduring perception, saying he doesn’t think real estate agents do themselves “any favours”.
“The public sees an agent rolling up in a German sports car and wearing an Italian suit and carrying themselves in a particular way.”
Yet Mr Driscoll points out the reality is different.
“Most real estate agents I know are working their socks off,” he declares.
Mr Driscoll reveals days starting at 7am and ending at 8pm aren’t uncommon for hardworking real estate agents, and most people are “sacrificing” their lifestyle for weekend work.
“The public might see them a certain way, but they work bloody hard, and most are still working every Saturday.”