Australia: Estate Agents

Overview

Most property in Australia is bought and sold through estate agents, who sell property on commission for owners. When buying property in Australia, always use a licensed agent. The Real Estate and Business Agents Act imposes obligations and requirements on licensed agents, which protect both buyers and sellers by creating a source of legal redress in the event of error, loss, misrepresentation or negligence. The act protects deposits paid by buyers and prevents conduct which could be misleading or prejudicial to buyers, and is backed by disciplinary procedures and a Fidelity Guarantee Fund. However, the act doesn’t apply to private sales where no agent is involved.

The Real Estate Institute of Australia, Level 1, 16 Thesiger Court (PO Box 9068), Deakin, ACT 2600 (02-6282 4544, www.reiaustralia.com.au) is the umbrella organisation for state real estate organisations, e.g. the Real Estate Institute of New South Wales, and you should check with them that an agent is a member. In July 2000, the Property Agents and Motor Dealers Act came into force, whereby estate agents are obliged to adhere to a code of conduct and incur harsher penalties for false or misleading representations. Estate agents must adhere to a code of ethics (of which you can request a copy) and must have professional indemnity insurance. Clients also have access to a Tribunal and Complaints Fund.

There’s a multi-listing service in all states, whereby homes are advertised in estate agents’ offices throughout the state, which costs vendors nothing until their home is sold. However, some agents may only show you, or at least try to push, properties for which they have an exclusive listing (when they don’t need to share the commission with anyone else).

Estate agents usually act for the seller and it’s their job to obtain the highest price they can for a property, so don’t expect impartial advice if you’re a buyer. If they offer to make a considerable reduction on the advertised price, it probably means that it’s overpriced and has been on their books for a long time. An estate agent usually tries to get you to view as many properties as possible (irrespective of whether they fit your requirements or price range), as this shows sellers that he’s doing a good job. You should try to sort out the possibles from the improbables before making any appointments to view and, if you’re shown properties that don’t meet your specifications, tell the agent immediately. You can also help the agent narrow the field by telling him exactly what’s wrong with the properties you reject.

Don’t see too many properties in one day, however anxious you are to find somewhere, as it’s easy to become confused as to the merits of each property. Many vendors hold an ‘open house’ at weekends (possibly with a ‘home open’ sign outside), although the total inspection period may be just a few hours. Otherwise, it’s essential to make an appointment with an owner or agent to inspect a property. It’s possible to inspect Australian properties on the internet from anywhere in the world, as most large estate agents, builders and developers now have websites.

Viewing

If possible, you should decide where you want to live, what sort of property you want and your budget before visiting Australia. Obtain details of as many properties as possible in your chosen area and make a shortlist of those you wish to view (it’s also wise to mark them on a map). Most Antipodean agents expect customers to know where they want to buy within a 30 to 40km (20 to 25mi) radius and some even expect them to narrow their choice down to certain towns or villages. If you cannot define where and what you’re looking for, at least tell the agent, so that he knows that you’re undecided. If you’re ‘window shopping’, say so. Many agents will still be pleased to show you properties, as they’re well aware that many people fall in love with (and buy) a property on the spot.

Agents vary enormously in their efficiency, enthusiasm and professionalism. If an agent shows little interest in finding out exactly what you want, you should go elsewhere. You should make an appointment to see properties, as agents don’t like people simply turning up. If you make an appointment, you should keep it or call and cancel it. If you’re on holiday, it’s acceptable to drop in unannounced to have a look at what’s on offer, but don’t expect an agent to show you properties without an appointment. If you view properties during a holiday, it’s best to do so at the beginning so that you can return later to inspect any you particularly like a second or third time.

You should try to view as many properties as possible during the time available, but allow sufficient time to view each property thoroughly, to travel and get lost between houses, and for breaks for sustenance. Although it’s important to see enough properties to form an accurate opinion of price and quality, don’t see too many in one day (between four and six is usually enough), as it’s easy to become confused about the merits of each property. If you’re shown properties that don’t meet your specifications, tell the agent immediately. You can also help the agent narrow the field by telling him exactly what’s wrong with the properties you reject.

It’s wise to make notes of both the good and bad features and take lots of photographs of the properties you like, so that you’re able to compare them later at your leisure (but keep a record of which photos are of which house!). It’s also shrewd to mark each property on a map so that, should you wish to return, you can find them without getting lost (too often). The more a property appeals to you, the more you should look for faults and negative points; if you still like it after stressing all the negative points, it must have special appeal.

© Survival Books Limited 2006

“Buying a Home in Australia & New Zealand” 1st Edition, Graeme Chesters.
Reproduced with the permission of Survival Books Limited.

Further information on this topic can be found in “Buying a Home in Australia & New Zealand” 1st edition, by Graeme Chesters.

For extensive information about buying a property in Australia & New Zealand, you can purchase this book at www.survivalbooks.net