An auctioneer has defended the real estate industry from accusations it is full of ‘soulless’ and ‘sleazy’ grifters whose sole focus is their outsized commissions, as he shares his top pieces of advice for potential buyers and sellers.
Real estate agents are the least trusted professionals in the country, but Justin Nickerson, director of Australia-wide Apollo Auctions, argued that the much-maligned property industry is actually staffed with caring and hard-working people.
‘I know how generally the public feels about real estate people, but I think they are just the same as every other occupation,’ Mr Nickerson told Daily Mail Australia.
In Australia, real estate agents typically charge a commission of around between 2 and 2.5 per cent of the property’s total sale price.
For instance, if you’re selling a home for $1 million, you’d pay approximately $20,000 – $25,000 to the agent responsible for the sale.
Mr. Nickerson responded to critics who believe that agents don’t do enough to justify their high fees for selling a home.
‘Within the occupation there’s some fantastic and hard-working people but there’s also other people that don’t do the right thing, just the same as any other job.
‘I think the biggest misconception is just that the people don’t care, that they are just soulless in how they go about their job.’
Justin Nickerson (pictured), director of Australia-wide Apollo Auctions, argued that the much-maligned property industry is actually staffed with caring and hard-working people
Mr Nickerson has been an independent auctioneer for 15 years and has worked with thousands of different real estate agents.
‘The the vast, vast majority of those people are hard-working and committed professionals, the same as most other people are in their day-to-day roles,’ he said.
Mr Nickerson encouraged potential sellers to take the time to do research and find a good agent who can secure the best price for their home.
‘The difference of choosing someone good at what they do and someone that that isn’t good at what they do in this case can can literally be thousands or hundreds of thousands of dollars in your pocket,’ he said.
‘You want to do the research to make sure that you go with someone that you feel is the best possible chance to represent your home because they’re your ambassador to the market.
And then once you do that, you do have to trust that person. I know using the word ‘trust’ with real estate agents kind of flies in the face of stereotypical thinking which says that they’re they’re sleazy, and they’re just trying to get a deal.
Mr Nickerson (pictured) encouraged potential sellers to take the time to do research and find a good agent who can secure the best price for their home
‘But you do have to trust what they say because they are your eyes and ears to the market.’
For potential buyers, Mr Nickerson said the most important thing was to have a plan.
‘A lot of people walk into the auction without a plan,’ he said.
‘They’ll say, ‘I’ll wait and see what happens and see if it falls in my lap’.
‘But that’s like trying to win the lotto without without buying a ticket.
‘If if you want to buy it, you have to bid and you need to have a plan, or else you’re going to get overtaken by someone who does have a plan.’
The esteemed auctioneer recently made headlines when he shared a video of a tense exchange with a bidder at a recent auction.
‘A late registration ma’am, can I get you involved,’ Mr Nickerson was heard asking the woman.
She hit back and said: ‘I am involved, but I’ll wait for you to do what you have to do’.
Mr Nickerson informed the woman that he was ‘going to sell it.’
She snapped back and said: ‘That’s fine, you do it. Do your job.’
Home prices across Sydney are starting to cool with the high interest rates softening the market
After the third and final call, Mr Nickerson concluded the auction and sold the home to another bidder for $2,115,000.
‘It’s pretty unusual to have a situation like that,’ Mr Nickerson noted.
‘As much as it’s an emotional and stressful time, everyone usually stays in their lane.’
That said, he has experienced some ‘very unusual’ encounters at auctions.
‘We had one last year where just as we started the auction, a car drove past and mooned us,’ he added.
‘We’ve also had situations with a father and a daughter bidding against each other.’
His comments come amid a warning that the prospect of higher for longer interest rates has sapped some heat from the property market, as growth in house prices slows in the winter months.
National home values rose half a per cent over the four weeks to July 18, according to CoreLogic’s daily index, down from a 0.7 per cent increase logged in the same period last month.
The property data company’s economist, Kaytlin Ezzy, said easing growth likely stemmed from stubbornly low consumer sentiment knocked around by still-elevated inflation.
A rise in advertised stock levels in some markets was also playing a role, she said.
‘With many household budgets already stretched by the high cost of living and increased debt-servicing costs, it’s likely some potential buyers are holding off and delaying purchasing decisions until the outlook for interest rates becomes clearer,’ she said.
This had likely reduced demand and taken some heat out of the real estate market, the economist explained.
Two stronger-than-expected monthly inflation readouts prompted some economists to push out their timelines for interest rate cuts.
Much is riding on June quarter inflation data out later in the month, with warnings a disappointingly strong result could even put another interest rate hike back in play at the Reserve Bank of Australia’s August meeting.
The slowdown in dwelling values was most pronounced across houses, with units less sensitive to market conditions.
Compared to mid-sized capitals, which have been growing strongly for some time, prices in Sydney were cooling faster.
House prices are softening while units are less sensitive to market conditions.
‘Affordability continues to be an important determiner for the pace of growth, with the more affordable end of the market showing more resilience to the elevated interest rate environment,’ Ms Ezzy said.
Brisbane, Adelaide and Perth did see the pace of home price growth tick a little lower through early July, hinting at the first signs of easing demand.
Renters are also seeing light at the end of the tunnel, with the number of vacant rental properties rising nationwide.
Vacancy rates are now sitting at 1.3 per cent, according to SQM Research, with capital city rents lifting just 0.1 per cent in the 30 days until July 12.
Research director at the firm, Louis Christopher, said renters would still have a while to wait for material softening in the market but the ‘the days of 10-20 per cent plus annual rental increases have come to an end’.
