More than a third of vendors had an “average to poor” experience with their agent, of which 14 per cent rated their experience as “very bad or disastrous”, a CoreLogic report has revealed.
Kylie Davis, head of real estate solutions at CoreLogic RP Data, says disintermediation of the real estate industry has started and is happening now.
“And here’s why, the service that too many agents still offer their clients is not good enough,” Ms Davis said.
“In the recent Perceptions of Real Estate report, CoreLogic discovered that 34 per cent of the vendors we surveyed had had an average to poor experience with their real estate agent,” she said. “Of this, 14 per cent was described as either very bad or disastrous.”
CoreLogic figures show there were 494,564 dwelling sales across Australia last year (end November).
Ms Davis said it would be troubling if 34 per cent of vendors, representing 168,152 properties, decided not to use a real estate agent.
“Taking the 34 per cent as a benchmark, [that] is the equivalent to 121,445 houses which at a median house price of $600,000 nationally, is equal to nearly $73 billion in property sales and nearly $1.8 billion in commissions (based on 2.5 per cent commission),” she said.
“For units, the figures are 46,706 unit sales at a median sales price of $502,000, [which] is a total of $23 billion in sales and commissions of $586 million.
“Effectively, poor service levels are putting an estimated $2.3 billion in annual commissions at risk,” Ms Davis said.
However, there are a few simple ways to avoid disintermediation of the real estate industry.
Read the full story here to discover the three basic skills that saw real estate agents rated highly by vendors.