Why do some real estate agents feel compelled to mislead both buyers and sellers?
This episode reveals the dark side of the industry and how these actions erode the trust that is so crucial for successful transactions. I dissect how agents misinform buyers about auction prices and create false impressions of competing offers, as well as the issue of misleading sellers about their property's expected sale price.
Drawing from over 30 years of experience in the field, I advocate for greater integrity and emphasise the importance of real-world experience in training effective agents.
I also tackle whether flashy displays like expensive watches or cars really equate to professional success.
Finally, I discuss the economic realities in Australia, addressing the high cost of living despite average salaries.
Why do some real estate agents feel compelled to mislead both buyers and sellers?
This episode reveals the dark side of the industry and how these actions erode the trust that is so crucial for successful transactions. I dissect how agents misinform buyers about auction prices and create false impressions of competing offers, as well as the issue of misleading sellers about their property's expected sale price.
Drawing from over 30 years of experience in the field, I advocate for greater integrity and emphasise the importance of real-world experience in training effective agents.
I also tackle whether flashy displays like expensive watches or cars really equate to professional success.
Finally, I discuss the economic realities in Australia, addressing the high cost of living despite average salaries.
Tom Panos:
But as I shoot this video, I've had a lot of thinking time. Yesterday, when I was sitting on the beach, I was thinking to myself if real estate was a better industry, if real estate agents had a better reputation, what would it look like? And why don't they have a great reputation? And I've got to tell you it's because of one word misleading. Misleading of people involved in the real estate transaction. And to me, the big two misleading pathways that real estate agents use is misleading a buyer. And you see that in the world of auctions, like it's going to sell for $2 million, right? The owners want $2.3 million and you have a real estate agent that potentially is telling buyers upwards of $1.5 million.
Tom Panos:
That is one of the main reasons why the real estate industry has a bad name and that is misleading buyers on price. And it's not just misleading buyers during an auction situation. Hey, everyone, hey Robert, hey Justin, it's not just misleading buyers in an auction context. I'm talking about misleading buyers. Hey, freddie, I'm talking about misleading buyers. Oh, we have another buyer that's already offered that, or I've got another buyer If you don't buy it. Blah, blah, blah.
Tom Panos:
And then the second part of the misleading bits that I'd love to actually, you know, look at slowly suffocating out of the industry. Hey Patrick from Perth is misleading sellers, misleading our owner, misleading an owner on what price they're going to get for their house. And I listen, I've worked in the industry for nearly 40 years now, nearly 40 years, and I've got to tell you one other thing that's got to happen in real estate is we need a couple of great real estate people that want to take the next step in their life and maybe they don't want to be, you know, working Saturday, sundays or not working late hours at night, I don't know what it is. But I've got to tell you there is a deep need for some really good people that have got good values, understand real estate, to hey Anthony, to actually look at contributing to the industry as a real estate educator, trainer, because, quite frankly, one of the reasons I've been able to have such a very long career in training in real estate is I'm one of the few people that actually have run a real estate office. I'm one of the few people that actually have run a real estate office. I'm one of the few people that have been to thousands of listing presentations. I actually sit there with vendor meetings, so I'm a practical educator. I mean, there are real estate agents that are getting advice in our industry of people on how to list a property and that person giving them the advice has never done a listing presentation. We have people that are telling principals how to run an effective business and they don't even run a business themselves that's effective or never even run a business.
Tom Panos:
So I've said it before. You know, look, don't get me wrong. You don't have to be the world's best real estate agent to be a great real estate coach, but you've got to understand the dynamics. I mean, how are you going to tell someone what chocolate tastes like if you've never tasted chocolate? You get the drift.
Tom Panos:
But the misleading of sellers where you're basic, and I understand it's hard because you're going to see an owner and the owner wants X amount and it's normally 10, 20% more than what. It's hard, because you're going to see an owner and the owner wants X amount and it's normally 10, 20% more than what it's worth, because every owner thinks their house is worth more than what it truly is. Right, I get that. And every owner thinks they've got the best looking kid. I get that. And every owner thinks that their kid is the smartest kid. I understand all of that.
Tom Panos:
But great real estate agents are able to impart influence without lying. Bad real estate agents go in and say your house will get 2.3. You want 2.3? I'm your person. Good real estate agents actually say we don't know exactly what it's worth. I know that you want 2.3. And I have to somehow go out there and find a buyer who has the same view on value as you. That's my job. So my job is not actually really valuing your property. My job is actually coming up with a business plan that is going to get as many people aware of your property as possible and then to get those people to get emotionally involved with that property and then to get one person to fight over the other person using a law called scarcity, where you take something away from someone, it becomes scarce and you actually use social proof to show other buyers look, it must be good, others want it and to actually have a great marketing campaign.
Tom Panos:
The point I'm saying to you, rob, I've got to tell you. You say I look 15 years younger. I have to tell you I'm so grateful I was thinking about it. I would not have believed at 57 years of age, after everything that I've gone through, after all the chemo, after all the radiation, after all the antibody trials, that I would feel as good as this and I'm so grateful and I'm so grateful. And to anyone that's got a family or a friend or a relative that is suffering through cancer, I've got to say to you when there's hope, the odds are not as important. Hope is the biggest thing. A person that's going through a major, life-threatening illness, whether it's cancer or anything else hope is what you want and that is something that I hung on to the whole 20 years of my cancer ordeal, over three times.
Tom Panos:
So, team, great real estate people have got the ability to say to an owner if we got you 2.3, that would be an extraordinary number and I would love to be aligned and that is my goal. And I've got to tell you there is no better person than me to get you that number. And I want to show you my exact business plan that is going to help you achieve house maximization. That is my goal. That is my goal Right. So they are two things that I would love to get stamped out of the industry the misleading of buyers, misleading of sellers. The third thing is that I think would make the real estate industry even more attractive and you'd be more proud working for it, if all of a sudden, real estate agents just took the notch down a bit on self-promotion. We do not see doctors saying hashtag 50 patients today, hashtag my best week ever, hashtag number one doctor in Newtown. You don't see doctors doing that. You don't see plumbers doing that, but we see it in real estate. So we've got this thing in real estate that, because we've got a profile in the community that we often use that profile not to promote a vendor or a vendor's property or information about the marketplace, but we promote ourselves.
Tom Panos:
And I've said it before, anyone that is big on self-promotion is probably overcompensating for deficiencies that they probably acquired as they were brought up and want to say look at me, those that feel strong on the inside don't really worry about spending too much time and energy, right? But in real estate we've got this obsession about the cufflinks, the nice watches, the nice cars, the beautiful video that promotes the agent looking, you know, jacked and not worrying about making the house look jacked, right. That's what I don't like. The agent has become the superhero. The vendor should be the superhero. So, team, the last thing I'm going to say to you is stock levels. They're going to be massive. I treat real estate as if it's tennis Grand slams. Four seasons I've had the pit stop and next weekend it is a full Saturday of auctions I don't know how many there's on 10, 15. And I've got about 50 appointments next week. So really looking forward, feeling rejuvenated, feeling fantastic.
Tom Panos:
And I just have to say to everyone out there, particularly those that are watching from the part of the world, that I live in Australia. What a wonderful country that we have. It just reminds me every time I travel. Don't get me wrong. Greece is beautiful, but I've got to tell you someone said to me Byron Bay or Mykonos, are you serious? Just do the audit on everything Water quality, byron Bay wins. Food quality, byron Bay wins. Vibe Byron Bay wins. Just smashes it left, right and centre, right in, right in Under our noses, team. Not only that Australia, even though it's been quite challenging in recent years with inflation, I've got to tell you the average salary of someone here, when we equate it into Aussie dollars, it's about a grand a month, a thousand a month. Yet this coffee, this coffee here, was six bucks. Do the numbers?
