Australia, 26th Jun 2024 – The Australian real estate industry is facing a critical juncture as resistance to change continues to hinder the evolution of a more balanced and equitable market. Despite the clear benefits of buyers agents, the industry remains entrenched in a culture driven by high commissions, with select selling agents dominating the landscape. DDP Property founder Zaki Ameer, aims to shed light on the reasons behind this resistance and advocate for the necessary changes to serve property buyers better.
The Traditional Model: A Seller’s Market
For decades, the real estate market in Australia has been predominantly seller-focused. Selling agents, incentivised by high commissions, have traditionally held significant sway over property transactions, often prioritising the interests of sellers over those of buyers. This dynamic has left many buyers navigating the complex real estate landscape on their own, frequently relying on the advice of selling agents who are not obligated to represent their best interests.
The Role of Buyers Agents
Buyers agents offer a transformative shift towards a more balanced real estate market. By working exclusively for buyers, they provide impartial advice, market insights, and expert negotiation skills. Buyers agents streamline the property search process, secure better deals, and grant access to off-market opportunities, ensuring that buyers receive comprehensive representation.
Resistance to Change: Key Factors
- Financial Incentives: The high commissions earned by selling agents create a robust financial motivation to maintain the status quo. Any shift towards a more balanced system threatens their income, leading to resistance against the adoption of buyers agents.
- Entrenched Practices: Long-standing practices and established relationships within the industry make it challenging to implement change. Many agents have built their careers on the existing model and are resistant to altering a system that has proven profitable for them.
- Lack of Awareness: Many property buyers need to be made aware of the benefits offered by buyers agents. The dominant presence and marketing efforts of selling agents often overshadow the services provided by buyers agents, perpetuating the reliance on seller-centric advice.
- Fear of Disruption: Change is inherently disruptive. For many within the industry, introducing buyers agents represents a significant shift that could upend their business models and require substantial adaptation.
The Need for Change
Zaki Ameer mentions that the real estate industry must evolve despite the resistance. A buyer-centric approach is essential for creating a more equitable and transparent market. Buyers’ agents play a crucial role in levelling the playing field, providing buyers’ representation and advocacy to make informed decisions.
Moving Forward
The path to a more balanced real estate market requires collective effort. Buyers must be educated about the advantages of engaging buyers agents, and industry leaders must recognise the long-term benefits of a fairer system. As a proponent of this change, I believe that the widespread adoption of buyers agents will lead to a healthier, more sustainable real estate market in Australia.
Conclusion
While resistance to change is understandable, given the financial and cultural dynamics at play, the benefits of a more balanced and buyer-centric approach are undeniable. By overcoming this resistance, we can create a real estate market that is fairer, more transparent, and ultimately more successful for everyone involved.
Zaki Ameer is a leading real estate expert and advocate for the role of buyers agents in the Australian property market
Media Contact
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Country: Australia
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