Ignorance or stupidity? Edwin Almeida

We can educate “ignorance” but “stupidity” is another ball game.

Allow me to share with you two scenarios. I will in turn give you the opportunity to ponder which of these is made through ignorance and which one is made through stupidity personified. Like always, pour a cup of coffee and read on.

First scenario: 

I attended to a home in the Northern Beaches to provide a Comparative Market Analysis (CMA) and bid for the vendor’s custom. Like always, local agents were also called in.

After discussing the process and the method of sale with the vendors, they began to enlighten me about my competition. Names withheld to protect the dummies. 

The following is a short transcript of the discussion. 

Agent (A): What has the out-of-area agent (Me) told you the home is worth? 

Vendor (V): After recommendations made; fixing and cleaning parts of the home, he felt $1,500,00-$1,600,000 is achievable and would advertise along these lines. 

V: What do you believe the home is worth?

A: The figures sound right. But we would not advertise it like he suggests.

V: What do you suggest? 

A: We would auction the home and ask for offers above $1,350,000.

V: But you told me the house was worth between, $1,500,000-$1,600,000. 

A: Yes that’s right, but we don’t want to scare any buyers/enquiry and we can work them up at the auction. 

Second scenario: 

We have on the market a home for sale, in Eastlakes. As usual, other than normal enquiry, we also receive enquiry from agents that are curious. Agents that work in the area, their patch. 

The conversation went along these lines.

Local Agent (LA): Hi, I noticed you have a property in the area, I was told you had sold it? If so, what did it sell for? 

Me: Not sold as yet, but presently working with two offers. How can I help you?

LA: Well, I’m a local agent and I have listed a home around the corner, just wanted to see what you sold your home for? 

M: Nice, how does it compare with my one?

LA: Very similar but land a bit smaller. Also fully renovated and 4 bedrooms, single level. 

Me: If I can ask, what’s your price guide? 

LA: We are quoting $1,500,000-$1,800,000.

Me: Wow, that’s a very broad price-guide isn’t it?

LA: Well it’s hard to determine the value of property.

Now, you tell me which one of these agents is ignorant and which one is simply stupid. Or do you think both fall in the same category? Or perhaps the words arrogant and deceptive spring to mind? 

One thing is for sure; not all vendors are sympathetic to “under-quoting” and deceitful marketing strategies. Nonetheless, is it up to the vendor to guide the real estate industry into best practice, or up to the professional? 

What I can say to most of my realtor friends is; if the kitchen is too hot, then go back to selling used cars and take the nonsense of charging vendors for the sale and marketing fees with you.

EDWIN ALMEIDA is licensee in charge of Just Think Real Estate.

He is also the creator of Oz Real Estate.TV and a presenter for propertyinvestingvault.com.