Estate Agent

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GUEST OBSERVER 
Fundamentally I believe that it is too easy to get a real estate agent license in NSW and it is too easy to keep it.
We need to increase barriers to entry to reflect the high value of real estate and associated risks in both buying and selling.
The Certificate of Registration competencies appear to be significantly less than when I got mine through the TAFE system back in 2000.
CPD points are largely viewed as a box ticking exercise and not a way to keep current with best practise. The fact you can get 12 points by attending the REINSW Women in Real Estate Conference shows what a mockery this whole system is.
The fact that licensees in charge are required to supervise their staff would lend itself to having a supervision component of their CPD requirement. I would be in favour of 4 additional points per year, for example.
I support a return to the system where one could not get a license until they had 2 years industry experience.
Key issues for BUYERS AGENTS
Buyers agents have not been treated as a separate occupation, rather as as a subset of selling agents, with a cut­down version of the license.
This is a major problem because the RISKS associated with having an inexperienced/uneducated buyers agent far outweigh those of engaging a sub­standard selling agent.
Buyers agents actually need MORE training than selling agents ­ specifically in the areas of a) identification of property faults, b) assessing strata reports, c) valuation/appraisal, d) investment benchmarks/strategies, e) negotiation skills, f) buying at auction.
Buyers agents who buy investment properties need to advise their clients on what constitutes a good investment. This veers dangerously close to financial advice and yet this is currently not addressed in the licensing requirements.
I believe that more buyers agent licenses are acquired by people without experience than other types of license. It should not be possible for somebody without experience to be able to get their license and then set up a business advising consumers on the purchase of property. It is perceived by many in the industry to be an easy license to obtain.
Poor skill level in a buyers agent can result in potential losses to the tune of hundreds of thousands of dollars ­ in either short or long term.
The term “buyers agent” is often misused and adopted by many sales agent’s assistants (who are engaged in handling buyer enquiry for the stock listings held by their agency) and also by property spruikers (often peddling developer stock and offering “investment seminars” which are actually sales presentations).
Consumers are often confused by this and a distinction needs to be made.
This could be achieved by improving the qualifications needed to be able to use the term.
1.1 Are there additional risks that should be included in an assessment of training standards? The risks associated with inexperienced buyers agents recommending poor quality property, property that does not actually suit their client’s needs, or (THE BIG ONE) paying too much for the property.
1.2 Are there other issues that should be considered in assessing training standards? If so what are they? Who can actually call themselves a buyers agent ­ consumers need to be confident that a buyers agent actually has the relevant license or certificate of registration and is working under the supervision of a licensed buyers agent.
1.3 What do you think should be the minimum educational standard for each category and why? I believe a licensed buyers agent should hold a diploma ­ there is much more involved in property selection, assessment, due diligence and valuation/appraisal than is reflected in the current license. The certificate of registration should be specific to the requirements of a buyers agent.
2.1 Although it is clearly possible to enter the property services industry without any experience, how often does this occur? I have met many licensed buyers agents who became licensed without prior experience. Many REBAA members entered the industry in this way (I would guess 50 percent).
2.2 What are the practical consequences of the absence of a time based requirement to enter the property services industry? Buyers agents are learning “on the job” at the expense of their clients.
2.3 What does time based experience achieve? Exposure to industry practise (hopefully best practise ­ which is more likely to occur if qualifications are raised). Many buyers agents start out extremely naive, so time based experience would address this issue.
3.1 What needs do the current CPD requirements meet? I’d argue none.
3.2 What are benefits of CPD and what are the costs to business? Benefits are minimal unless the licensee in charge insists on specific courses. The costs can be as low as $99 per staff member and the course can take as little as 4 hours. Some licensees expect their staff to pay for themselves and do the course in their own time (or online).
3.3 What are the problems or issues with the existing CPD regime in NSW? As above. In my experience CPD points are not taken seriously. The RTOs I have had experience with over the years tend to give out the answers to the assessments. Rather than try to impart knowledge and skills, the focus was on being able to quickly complete the open book assessment at the end of the session.
3.4 Are the current requirements relevant? No.
4.1 What are the current problems with the delivery and assessment of training for the property services industry? The expectations of the organisations delivering it.
4.2 What problems have arisen and what are the impacts on the industry? Minimal actual education/skills development results in poor standards across the industry, particularly when people work for small, under resourced firms that provide little or no staff training. The impact is obvious, especially when compounded with the fact it is too easy to get a license in the first place.
4.3 What changes should be made to the delivery and assessment of training for the property services industry? Buyers agents should have their own category, which reflects the risk to consumers from getting advice from inexperienced practitioners. CPD points need to be taken seriously. The expectation of RTOs in terms of assessment of skills and learning outcomes needs to be beefed up.
5.1 What are the key issues in relation to cross border operations of property and achieve?
5.2 What are the current barriers to achieving mutual recognition?
5.3 How might we improve mutual recognition for auctioning of property and livestock? I am not qualified to answer these questions.
Veronica Morgan is principal, Good Deeds, and can be contacted <a href="https://gooddeeds.com.au" target="_blank">here</a>. This was her submission received during the public consultation period for the Review of Property Services Industry Training Standards in NSW.
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jchancellor-FAypfDUnLy

It's too easy to get a real estate license in NSW: Veronica Morgan

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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 <a href="https://www.just-think.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"> </a>
He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.
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Ignorance or stupidity? Edwin Almeida

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The Australian estate agent Ken Jacobs has joined the launch of Forbes Global Properties, a curated consumer marketplace that connects high networth buyers directly to the world’s finest homes.

Forbes, one the world’s most-recognizable business media brand, announced the launch of Forbes Global Properties last week.

Established as an invitation-only consortium of leading real estate firms, the start-up will capitalize on Forbes’ engaged audience of 140 million monthly global visitors to connect, inform, and inspire high-net-worth potential homebuyers and sellers about the finest properties for sale around the world.  

It is entering the arena occupied by Global Mansion, operated within the News Corp group as a marketing platform. 

But spearheaded by Jeff Hyland, co-founder and president of Hilton &amp; Hyland, and Bonnie Stone Sellers, an accomplished real estate industry veteran, Forbes Global Properties is primarily broker owned and led.

Forbes is also invested in the initiative.

Hyland and Sellers have appointed Alex Lange, an industry veteran who most recently served as the CEO of UpstreamRE, as its chief executive.

Jacobs is on the board of directors, though his recently established entity Private Property Global. He retains the Christie's International Australian affiliation through his Prestige Homes of Australia office in Double Bay.

“Unlike other branded real estate groups, Forbes Global Properties is not merely a listing tool for agents — it offers direct and measurable access to potential high-net-worth buyers through Forbes’ worldwide media penetration,” Hyland suggests.

Membership in the network is reserved for 100 elite brokerage firms with homes being presented to potential buyers across Forbes and Forbes Global Properties print, digital, and social media channels.

The current membership spans more than 75 locations across the U.S., Asia and Europe with the network accepting new member brokerages in the coming months "after a rigorous vetting process." 

Founding member brokerages are established leaders in their local luxury property markets and have offices in more than 75 locations across the U.S., Asia and Europe. The network will begin accepting new member brokerages in the coming months after a rigorous vetting process.

The Forbes Global Properties brand also has another Australian connection — the founders tapped Tracey Atkins of Australian-run firm Goldeneye Media to make the launch film, available here. 

Reserved for luxury properties, forbesglobalproperties.com currently showcases thousands of high value homes available for sale around the world, including homes priced above USD$160 million.

More than 200 homes are priced above USD$10 million, but none yet from Australia.
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Forbes, one the world’s most-recognizable business media brand, announced the launch of Forbes Global Properties last week

jchancellor

Ken Jacobs joins Forbes Global Properties network

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Joel Phillip Murray, an estate agent, was reprimanded and had his licence suspended for three months and conditions attached to it, after failing to have his trust accounts audited. 
The Victorian Civil and Administrative Tribunal found that Mr Murray, 41, of Berwick, contravened the Estate Agents Act 1980 and the Estate Agents (Professional Conduct) Regulations 2008.
Mr Murray failed to cause his trust account to be audited within three months of the end of the 2010-2014 financial years, and to lodge copies with the Director of Consumer Affairs Victoria, as required by the Act.
The tribunal found that Mr Murray contravened the Regulations by failing to exercise due skill, care and diligence in performing his functions as an estate agent, and by engaging in unprofessional conduct.
He was reprimanded and had his licence suspended for three months from 20 October 2015 until 19 January 2016.
His licence was also made subject to a condition that, on or before 19 October in each of 2015, 2016 and 2017, Mr Murray must notify the Director in writing whether or not he has complied with his trust account audit and lodging requirements for the previous financial year.
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Strict trust account audit requirements for estate agent Joel Phillip Murray

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The Sydney Eastern Suburbs agency Di Jones Real Estate has merged with LJ Hooker Wahroonga, inspired by the trend where 30 percent plus of its buyers for inner city Paddington are coming from the North Shore.
Di Jones Real Estate will be led by chief executive officer Rob Ward.
It's general manager will be Kylie Walsh, who will lead the effort to implement a strategic growth plan for the business throughout Australia.
Both companies combined in the last 12 months lay claim to in excess of $530 million worth of properties sold in last year. 
It will have $1 billion worth of properties under management.
"It is an important milestone that propels us into a future rich with opportunity for our clients, our people, and our company” said founder, Di Jones who oversaw its recent expansion into the Southern Highlands and Northern Districts late last year.
The <a href="https://www.dijones.com.au" target="_blank">Di Jones agency</a> commenced in 1992 in Woollahra and Paddington.
Robert Ward founded LJ Hooker Wahroonga in 2003, recently recognised as running one of the top 100 sales businesses in Australia by REB.
Rob Ward has personally sold in excess on $1 billion worth of real estate. 
Di Jones Real Estate launched their <a href="/news/45962-di-jones-announces-southern-highlands-division" target="_blank">Southern Highlands division</a> early September 2015.
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Di Jones expands to Sydney's North Shore

We sell our homes for all kinds of reasons, but what nearly every vendor has in common is passing on the sale of their biggest asset to a virtual stranger - the real estate agent.

Selling Houses Australia presenter Andrew Winter shares his expert advice to ensure you pick the right one for the job!&nbsp;

Big billboards, brands and flashy adds are all well and good but if you don&rsquo;t have a good rapport with your agent it could all be for nothing.

It&rsquo;s a good idea to spend a bit of time making sure you have picked the right one &ndash; think of it as a job interview for the right agent and right brand.

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There are a number of key factors to finding the right one for you:&nbsp;

- Does the real estate agent you&rsquo;re considering seem genuinely keen to sell your home or do they have bigger fish to fry?&nbsp;

- The number one agent in your area may be good but number two may be more hungry.&nbsp;

- Fish around online to see what kind of properties different agents in your area sell.&nbsp;Some agencies&nbsp;specialise&nbsp;in certain styles and price brackets.&nbsp;

It&rsquo;s false economy to hire someone with experience selling period homes if yours is the only new build.

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So you&rsquo;ve checked out the internet, interviewed a number of agents and made your selection, now it&rsquo;s time to sign on the dotted line.

- Make sure your agreement contains an estimate of total fees, charges and expenses.&nbsp;

- Understand their fee structure and pin them down to a sales figure they expect to achieve.

- If the offers are falling short of the mark and the agent is encouraging you to take lower offers this could be time to re-negotiate the fee.

- There commission is a big chunk of money and if you are getting less than you expected so should they!

- Don&rsquo;t feel intimidated by your agent &ndash; this is meant to be a partnership after all.

- If you really are unhappy go to the agency principle and express your thoughts.

- Don&rsquo;t be too concerned about rocking the boat there are always another agents.

You wouldn&rsquo;t buy a house without seeing it or doing your research &ndash; the same applies for selling. Get it right and you could be in the money.

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Property 101: Andrew Winter on selecting the right estate agent

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A Melbourne estate agency and its director have been fined a total of $7,000 over the agency’s poor conduct in the sale of a four-unit development in Malvern.
The Victorian Civil and Administrative Tribunal has also ordered, with the consent of the parties, that estate agent, Frank Valentic, 46, of Elwood, have his estate agents licence suspended for six months, starting from 1 April 2016.
Mr Valentic is sole Director and Officer in Effective Control of Advantage Property Consulting Pty Ltd, which provides buyers' advocate services.  
Advantage Property has also been ordered to begin a three-year compliance, education and training program to ensure it complies with the Estate Agents Act 1980 and the Estate Agents (Professional Conduct) Regulations 2008. 
Consumer Affairs Victoria took action against Mr Valentic and Advantage Property following a complaint from a purchaser of one of the units.
Its action alleged that:
<ul>
<li>purchasers were assured that they would have exclusive access to part of a courtyard that was actually common property, despite this needing to be agreed to by the owners corporation after the settlement</li>
<li>Mr Valentic twice entered a tenanted unit without the tenant’s knowledge or consent that the inspections were taking place</li>
<li>Mr Valentic appointed Advantage Property as owners corporation manager even though he had no authority to make that appointment</li>
<li>Advantage Property charged two purchasers a ‘consulting fee’ of $13,750 for services that should have been better described to them</li>
<li>Advantage Property instructed purchasers to backdate legal documents</li>
<li>Advantage Property required purchasers to use a particular solicitor to undertake the conveyancing work.</li>
</ul>
Director of Consumer Affairs Victoria Simon Cohen said this was a good outcome that highlighted that the regulator would pursue unprofessional conduct by estate agents.
“Victorians need to be able to trust that buyers advocates are acting in their best interests and not engaging in conduct that is motivated by self interest,” Mr Cohen said.
“The actions of Mr Valentic were reprehensible and designed to put the purchasers of these properties at a disadvantage, while profiting from his actions.”
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VCAT fines Frank Valentic's Advantage Property Consulting

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<div>Properties sold in Australia without an agent account for less than one percent of all property sales in Australia, according to research by real estate comparison service Which Real Estate Agent.</div>
<div> </div>
<div>In figures, of the half-a-million homes sold in Australia in the 12 months to November, just 5,300 were sold by an owner without an agent.</div>
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<div><a href="/images/2016/02/19/properties-for-sale.png" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/02/19/properties-for-sale.png" alt=""></div>
<div> </div>
<div>The UK’s property market is more mature than Australia's, and local property analysts often use UK data to predict Australian trends, it says.</div>
<div>
According to the research, for sale by owner has similar market penetration in the UK as in Australia. Of the 1.2 million properties sold in the UK every year, just 10,000 are sold by owners who don’t use agents. That’s less than one percent of all property sales.
This suggests that unless a disruptor arrives and turns the entire property industry on its head, Australia’s for sale by owner market isn’t about to change. It hasn’t happened in the UK, and it’s unlikely to happen here.
<a href="/images/2016/02/19/For-sale-by-owner-property-sales.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/19/For-sale-by-owner-property-sales.png" alt="">
Other key findings include: 
<div>
<ul>
<li>Half of the for sale by owner websites analysed had sold fewer than 200 properties in the past year</li>
<li>For sale by owner websites sold an extra 300 properties this year compared to last, but that growth dwarfs when compared to the thousands of homes sold every year by agents. </li>
</ul>
For the research, Which Real Estate Agent examined sales data for 12 for sale by owner websites to see how many properties sold in the last 12 months (December 2014 to November 2015), and in the 12 months before that (December 2013 to November 2014).
<a href="/images/2016/02/19/growth.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/19/growth.png" alt="">
To derive sale numbers, they counted the number of sales listed on each website’s agency profile on realestate.com.au.
While hiring an agent will cost you, it is probably better to hire one if you are not experienced in the property market. There's also the downside risk of selling for a lower price than what you could have achieved with an agent. 
The full article can be found <a href="https://whichrealestateagent.com.au/ultimate-guide-australias-sale-owner-market-sell-agent/" target="_blank">here</a>.
</div>
</div>
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Homes sold without an agent make up only 1 percent of Australia's property market: research

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A manhunt is under way for a Townsville real estate agent who has been found guilty of importing almost a kilogram of methamphetamine from Malaysia.
John Edward Brown, 39, was on trial in the Supreme Court in Brisbane on drugs charges, including the importation of 1kg of powder found to contain 629g of pure methamphetamine in 2012.
He moved to and became a Townsville estate agent shortly after he was charged.
During the five-day trial, the court was told Brown had imported the drugs in late 2012, via an air courier from Malaysia.
The Townsville Bulletin advised on <a href="https://twitter.com/tsv_bulletin?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor">its front page splash</a> that, after Brown was cross-examined by prosecutors on Wednesday, June 15, the jury was sent to deliberate, but when they returned with their verdict last Thursday, Brown was a no show.
<a href="https://webcache.googleusercontent.com/search?q=cache:QJYfCjCBeZMJ:https://www.realestate.com.au/agent/john-brown-1401866+&amp;cd=1&amp;hl=en&amp;ct=clnk&amp;gl=au">Brown was a contract estate agent most recently</a>, with the firm not aware he had been charged awaiting trial.
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