Dialogue: Salespeople in hot seat if property auctioned

By ROSS FOREMAN*

As with many other industries with a glamorous image, a lot of people are lured to a career in real estate thinking that the pickings will be easy.

The truth is very different. It is a demanding job where you are only as good as your last sale. Those who don't perform simply don't survive.

Unlike the image portrayed in Chris Skinner's article (Herald, August 31), selling property is a sophisticated business that requires trust and credible actions.

It is well documented that selling a house can be a stressful time. But it is the job of the real estate salesperson to make selling your house as stress-free as possible.

It is a partnership with the vendor and it is in the interests of both parties to make it work.

Mr Skinner's suggestion that real estate salespeople are untrustworthy is nonsense. Every professional in this business goes out of their way to ensure that there is no friction between them and the vendor.

A good real estate salesperson understands the need to build a trusting relationship.

Over the years I have worked with, and coached, hundreds of salespeople who know that their reputation is to be cherished and cared for.

In the real estate business, reputation and credibility are earned over time. They matter a great deal. If a salesperson acts in a questionable manner, they simply won't get any repeat business. Real estate is a word-of-mouth business, so salespeople understand the importance of not offending anyone. We live in a small country and you simply can't get away with treating people badly.

However, salespeople do have to know how to assess the going market rate so they can quantify it from a buyer's point-of-view. Every property's seller and buyer has a different set of demands and it is the task of a good salesperson to marry the right ingredients to get the best deal. A lot of energy goes into giving the right advice, even though sometimes that may not result in a sale.

Selling by auction puts a great deal of responsibility on the salesperson. They have to make a serious commitment to the vendor and they need to maximise all the marketing opportunities to ensure they find buyers. They are on show. The process is transparent and the salesperson is unquestionably in the hot seat.

Mr Skinner may not like auctions but the fact is they are the oldest selling system known to mankind - in fact auctioneering is the second-oldest profession in the world.

And auctions will continue to flourish. The process is simple - you either want the property and bid to where you are comfortable - or you don't bid. Nobody can force you.

It's the ideal way to build up healthy competition and gives vendors an opportunity to achieve a sale within a given timeframe, at fair market value, and get the highest price a willing buyer will pay on the day.

If there is a premium in the marketplace, the auction process gives the seller the opportunity to obtain it.

In Ponsonby, one of Auckland's most prolific auction environments, if you are not selling by auction, buyers are less likely to take interest.

More than half the homes for auction in this central Auckland suburb sell on auction day, with another 18 per cent selling beforehand.

The buyers in this area are sophisticated, young, intelligent and active - they're the movers and shakers and they know exactly what they want. They also want to go along to auctions to see what other people are prepared to pay. It's exciting and it's competitive.

Auctions require a set of specialist skills and sellers should always check the credentials of real estate salespeople before employing them. Experience, success in the industry, testimonials from satisfied clients - these are all important. And remember, all qualified salespeople must act according to the rules of their regulatory body.

Clearly, salespeople will try their utmost to get the very best price they can - that's what makes a real estate salesperson successful.

But there is no question that the real estate market in New Zealand has got tougher.

Since the market peaked in 1996, there has been a tightening effect due to the economy and the dynamics of the marketplace have also changed.

Today there is much greater choice - apartments, terraced housing, lifestyle blocks, and higher demand for inner-city living. This has had a major impact on house prices, particularly in Auckland.

This has all made the job much more difficult.

Often you have to take a price to a vendor which the market is prepared to pay, but which the seller is not prepared to accept.

There can be a gap to close and patience plays a big part.

But, whatever advice and support we offer, at the end of the day it is always the vendor's call. Ultimately, only they can decide whether to sell or not.

* Ross Foreman is an experienced real estate auctioneer.