February 10, 2006
Real Esate Agencies on the Coast and the Need for a Code of Ethics
Agents are torn between the discordant function of protecting their client’s best interests and finding them a great property while making their commission.
There are a few companies on the Costa del Sol that sell in an ethical manner but over the years there have been numerous examples of those that don't. The industry has suffered from a disastrous relaxation of business ethics, due to real estate agents offering inferior property at over inflated prices and selling on the basis of future price increases to create irrational expectations. Agents have also been guilty for selecting property purely on a basis of maximising their commission and not on what is most suitable for the client.
The sales methods employed by most of todays agents operating in the market place are quite different from the original roles of offering quantitative analysis, good advice and good property. The fault is not entirely the agents: vendors demands of high prices, and poor standards of customer care in the construction sector have led many agencies to choose between trying to sell inferior product at over inflated prices or simply advising their clients not to buy.
The pending drop in property prices in certain sectors will cleanup the market by dramtically reducing the amount of new build property being constructed and either force vendors to become more reasonable with their price expectations or not sell. This will also help put an end to unsustainable real estate practices.
Awareness of the high commissions charged coupled with inferior service, has led to a growing reluctance to use estate agents. Companies have to provide a better quality service, for a smaller fee and a higher level of transparency in order to survive, and they also have to concentrate on presenting the right property at the right price.
A good agent services should incorporate the following:
After all hunting property is not without its problems and pitfalls, a good real estate agent should be able to provide the required solutions and this is where they earn their commission.
Category: The Great Housing Debate