If studies show certain things, then we have to have a look at them, see what lies beneath it and usually there is an educational component that comes out of it. I think that with such a poorly trained industry – in general terms – the entry levels and licensing levels have been watered down so much that anyone can enter the industry. Then there are the CPD’s which some cases can be done in less than one hour online which is a rort on the whole industry. I am concerned about the rorting of some of the online systems, as well as some of the 'in class' systems where everyone just passes.
“The rorting of CPD’s are in our sights”
Real Estate Agents today seem to treat their role as a purely marketing position. While marketing is a massive component of their role, knowledge is king and how you disseminate that knowledge to your clients is extremely important. Giving buyers and sellers good advice is what pulls everything together.
As you know McGrath Real Estate recently went public. Do you feel that if more groups went public, then you may see agencies run to benefit the shareholders rather than the clients or the industry as a whole?
That’s an interesting question. There are two dynamics in the industry – the large franchise groups and the boutique individuals. The franchises are getting smaller, the offices are getting smaller and I think it is because of the restrictive nature of the franchises. That is just my personal point of view as a practitioner. I am sure some will go down the listing path. Some obviously will not be looking at that anywhere in the near future – such as Ray White and Raine and Horne, which are private and family run.
But the reality is, is that this is a business about personal interactions. Once you put that corporate control on top, which is purely driven by a bottom line, you may start to delve into an area where the customer may start to suffer, maybe. It’s a new world we are facing and we are going down a path we have never seen before.
What are you views on Aggregators
I have big concerns about them. In all their incarnations, they are trying to get a slice of the pie, and that is fine. I am concerned when they purport that they do not charge fee, in my mind that is misleading and deceptive conduct. They get paid from the agent whom at the end of the day is paid by the vendor. They will only recommend those agents who have signed up with them and have agreements in place. Again, this is a business about personal interaction and that 80% will want to deal with a trusted advisor and there will always be that 20% who are looking for a discount.
"The value of a real estate agent’s license needs to be valued higher"