How to spot a bad real estate agent: Experts reveal warning signs

Choosing a good real estate agent is an important step in the selling process.

Nowadays, there’s so much information online that can help you choose a real estate agent. The problem is, not all of it can be trusted.

So, how do you know which agent to use when selling your home?

REVIEWS AND RAPPORT

While reviews are important to consider when selecting an agent, it pays to be mindful of where they are coming from, says REIA deputy president Hannah Gill.

“You see so many comments now on Facebook message groups and similar saying, ‘can anyone recommend a good agent?’,” she says. “And you get hundreds of responses, but half the time it’s friends or family or colleagues of those agents responding for them.

REIA deputy president Hannah Gill.

“So just be mindful of what the audience is and whether that data can be manipulated.”

A platform like Google Reviews is much harder to manipulate, while good old fashioned word of mouth from family and friends can’t be beat, she says.

Ray White AKG group CEO Avi Khan says sellers have moved towards looking at reviews left by past clients on the major real estate platforms.

MORE: Aus council shock plan to ban popular backyard item

Hidden group buying two in five NSW homes

“Sellers are really big on testimonials right now because that’s one way to cut through all the marketing metrics,” he says. “They also want a good human being. Everyone is time poor.

“They want to go with their gut – they want to go with someone they like as well.

“That’s becoming more and more of a reason to select an agent rather than just their stats alone.”

Ray White AKG group CEO Avi Khan.

WHAT COMMISSION IS FAIR?

There’s no simple way to gauge if an agent’s commission rate is a good one. Gill says agent commissions can vary from below 1 per cent to more than 4 per cent, while some agents even charge a flat fee instead.

“I’d always recommend talking to two or three agents to get a feel for what is available and what is being offered in the market,” she says. “It’s a bit of a cliche, but cheap isn’t always best.

“Consider when you’re talking to an agent, if they’re really quick to drop their price for you, what does that mean if they can’t demonstrate their value to you as a selling agent?

“What does that mean when they’re talking to a buyer? Can they effectively negotiate? Or are you at risk of getting lower offers because they’re not in a position to get the best outcome for you?”

Tread carefully with agents who are willing to drop their sales commission without a fight.

While choosing someone with a “trusted name” can be good because you know their brand and reputation, someone newer in their career without as much of a track record can be a risk, Gill says. But both scenarios can have pros and cons. An established agent may be juggling multiple listings but have good team support behind them. A newer agent may not have the same experience behind them but can give you their undivided attention if they are only taking care of your listing.

Gill says in any case, it’s better to choose someone you get along with. It’s also important that they are responsive.

“How they interact with you is probably a pretty good mirror of how a buyer may experience dealing with them as well,” she says. “If they’re not getting back to you quickly, what does that mean for a prospective buyer?”

Look for a good track record of proven success.

RED FLAGS

Khan says promising a price that is way above market value is a definite red flag.

“You should never trust an agent who’s just coming out arbitrarily giving you random prices that’s way above the recent sales,” he says. “The agent’s just telling you the price you want to hear, rather than telling you the process, the marketing, the negotiation that they’re going to use.”

An excess of negative reviews is another warning sign of a bad agent, he says.

An agent needs to have excellent negotiating skills to drum up more competition. Picture: Daily Telegraph / Monique Harmer

WHAT MAKES A GOOD AGENT?

Ray White AKG group CEO Avi Khan says sellers should look for these things in a real estate agent.

1. A good track record – What are the agent’s properties selling for and how quickly are they selling?

2. Market knowledge – Buyers are searching further than just one suburb nowadays, and agents should have expertise across two or three surrounding markets.

3. Happy clients – How many good reviews have they received from clients? What do testimonials say about the agent’s services?

4. Good marketing skills – Look at how well their properties are marketed. Does the agent present the property as the hero in the campaign, or do they make themselves the hero instead?

5. Excellent negotiating skills – You want someone that will negotiate on your behalf. Can they create competition for your property in order to get the best price possible?

MORE: ‘Rate cut inevitable’: Signal RBA won’t ignore

‘Coveted’ Sydney mansion sets new price record

‘World’s best’: rare look into Trump’s US palace

The post How to spot a bad real estate agent: Experts reveal warning signs appeared first on realestate.com.au.