Agent comparison websites may come with the promise of helping property owners decide which real estate agent to choose, however a number of Bendigo agents who’ve dealt with the companies warn house hunters and sellers to be wary of how they really operate.
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While the services claim to research every local agent, identify their past performance and suggest to prospective property buyers which ones best suit their needs (at no cost to the consumer), the reality is quite different.
Craig Webster from Webster Real Estate Bendigo said the list may just be agencies that are willing to pay or purchase their own business. “Most clients feel they are getting the service for free, when in fact the agent they engage will be paying the referral company a substantial fee when the property is sold, in some cases sharing up to 20 per cent of the total commission,” he said. “I don't believe they offer a great benefit to prospective vendors or landlords, as it’s engaging a company that offer and sign up many licensed estate agencies with a form online - there’s no interview, criteria, etc.”
A Bendigo real estate agent who wished not to be named said their agency is contacted frequently by agent comparison sites, and thinks it’s a risky way for house hunters to approach the market. “Property is generally the biggest asset for any individual. To make a choice based on a recommendation from someone, based on information they’ve garnered, is very dangerous. Whatever people do, they should never rely on the information provided by a third party, who are inadvertently getting paid for it.”
Another agent who wished to remain anonymous said their agency receives emails inviting them to inspect a property, as long as they’re prepared to pay a fee, a message they believe would be sent to every agency in town. “They claim that they are giving the best agent to the client. We say they only give it to agents which pay.”
They added that rating agents as top sellers is also misleading. “These agencies are not in Bendigo, they’re generally based in either Sydney or Melbourne (and) have no clue who sells which property in any office. “They do not know the local market, but refer only to agents who will pay their commissions.”
It was suggested by one agent that the services could be used as a guide, but shouldn’t be the way you make a final decision. “You have to like them and build a relationship, otherwise you’re never going to trust them. You should be very careful when choosing an agent - speak to someone who already has their house on the market, listen to how they’re finding the experience with thier agent, that‘s the best thing.”