Agents in Australia and New Zealand are some of the best in the world, particularly when compared to their North American counterparts as they have closer ties to vendors and a greater motivation to sell their home, an industry professional has claimed.
“Australian agents can definitely learn a lot from other agents around the world, however, Australian and New Zealand agents are widely acknowledged as being amongst the best in the world,” said regional owner of RE/MAX WA, Geoff Baldwin.
Mr Baldwin made the claim based on a comparison with how agents worked in the US and Canada, which he said was very different to how agents operated in Australia and New Zealand.
“Through my close association with RE/MAX which has its head world office in Denver, Colorado, I have been able to work closely with successful agents throughout North America and in other regions,” he said.
“In Canada and the US, agents tend to spend as much time and resources marketing to each other as they do to the public, with around 90 per cent of properties being sold through conjunctional dealings between agents.
“An example of this is that when a US salesperson holds an open home open it is more for the purpose of inviting and exposing the home to other agents than directly attracting potential buyers.
“On the surface the above approach may sound sensible however it is made possible through the average selling fee being between five per cent and seven per cent of the selling price, approximately double the average fee charged by Australian agents.
He said an “average” US real estate office would employ anywhere between 50 and 200 agents, all working on a contract basis.
“Agency owners in the US make their main income from charging contractor salespeople a monthly set fee for brand exposure, office space and administrative support, and have little contact with clients leaving that up to each contractor,” he continued.
“In Australia the agency owner, or principal, is more results oriented as he or she is paid from a share of the commission charged, and hence [has] a more direct relationship with clients and a huge motivation to ensuring their expectations are met.”