An auctioneer has defended the property industry against accusations it is riddled with “soulless” and “sleazy” scammers whose only aim is their outsized commissions, as he shares his top tips for potential buyers and sellers.
Estate agents are the most untrustworthy professionals in the country, but Justin Nickerson, director of Australia-based Apollo Auctions, argued that the much-maligned property industry is actually made up of caring, hard-working people.
“I know how the general public feels about people in the property industry, but I think they are the same as in any other occupation,” Nickerson told Daily Mail Australia.
In Australia, real estate agents typically charge a commission of between 2 and 2.5 percent of the total sale price of the property.
For example, if you are selling a home for $1 million, you would pay approximately $20,000 to $25,000 to the listing agent.
Mr. Nickerson responded to critics who believe agents do not do enough to justify their high fees for selling a home.
‘There are fantastic, hard-working people in the profession, but there are also others who don’t do the right thing, just like in any other job.
“I think the biggest mistake is to believe that people don’t care, that they have no soul in their work.”
Justin Nickerson (pictured), director of Apollo Auctions, an Australian firm, argued that the much-maligned property industry is actually made up of hard-working and caring people.
Mr. Nickerson has been an independent auctioneer for 15 years and has worked with thousands of different real estate agents.
“The vast, vast majority of these people are hard-working, committed professionals, just like most other people in their day-to-day roles,” he said.
Mr. Nickerson encouraged potential sellers to take the time to research and find a good agent who can secure the best price for their home.
“The difference between choosing someone who is good at what they do and someone who is not good at what they do in this case can literally be thousands or hundreds of thousands of dollars in your pocket,” he said.
‘You need to do your research to make sure you choose someone who you feel has the best chance of representing your home because they are your ambassador in the market.
And once you do that, you have to trust that person. I know that using the word “trust” with real estate agents goes against the stereotypical thinking that they are corrupt and just trying to get a deal.
Mr. Nickerson (pictured) encouraged potential sellers to take the time to do their research and find a good agent who can secure the best price for their home.
“But you have to trust what they say because they are your eyes and ears in the market.”
For potential buyers, Mr. Nickerson said the most important thing was to have a plan.
“A lot of people come to the auction without a plan,” he said.
They’ll say, ‘I’ll wait and see what happens and see if it falls from the sky.’
“But that’s like trying to win the lottery without buying a ticket.
“If you want to buy it, you have to bid and you have to have a plan, otherwise someone who does have a plan will beat you to it.”
The esteemed auctioneer recently made headlines when he shared a video of a tense exchange with a bidder at a recent auction.
“Ma’am, you checked in late. Can I help you?” Mr. Nickerson was heard asking the woman.
She responded and said, “I’m involved, but I’ll wait for you to do what you need to do.”
Mr. Nickerson informed the woman that he was “going to sell it.”
She snapped, “Okay, do it. Do your job.”
Sydney house prices are starting to cool as high interest rates soften 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,” Nickerson said.
‘Even though it’s an emotional and stressful time, everyone usually stays in their own lane.’
That said, he has experienced some “very unusual” encounters at auctions.
“Last year we had a case where just as we started the auction a car drove by and showed us its rear end,” he added.
‘We’ve also had situations where a father and daughter compete against each other.’
His comments come amid a warning that the prospect of higher interest rates for longer has taken some of the momentum out of the housing market as house price growth slows in the winter months.
National home values rose half a percent during the four weeks through July 18, according to CoreLogic’s daily index, down from the 0.7 percent increase recorded in the same period last month.
Real estate data firm economist Kaytlin Ezzy said the growth slowdown was likely due to persistently low consumer sentiment, weighed down by still-high inflation.
Increased levels of advertised stock in some markets also played a role, he said.
“With many household budgets already strained by the high cost of living and rising debt servicing costs, some potential buyers are likely to be putting off their purchasing decisions until the interest rate outlook becomes clearer,” he said.
This has likely reduced demand and taken some pressure off the housing market, the economist said.
Two stronger-than-expected monthly inflation figures prompted some economists to push back their timelines for interest rate cuts.
Much depends on June quarter inflation data due later in the month, with warnings that a disappointingly strong result could even put another interest rate hike into play at the Reserve Bank of Australia’s August meeting.
The slowdown in home values was most pronounced for houses, and units were less sensitive to market conditions.
Compared to mid-sized capitals, which have been growing strongly for some time, prices in Sydney are cooling more quickly.
Home prices are softening as units become less sensitive to market conditions.
“Affordability remains an important determinant of growth momentum, with the more affordable end of the market showing greater resilience to the high interest rate environment,” Ms Ezzy said.
In Brisbane, Adelaide and Perth, the pace of house price growth slowed somewhat in early July, indicating the first signs of easing demand.
Tenants are also seeing light at the end of the tunnel, with the number of vacant rental properties rising across the country.
Vacancy rates now stand at 1.3 percent, according to SQM Research, and rents in the capital rose just 0.1 percent in the 30 days to July 12.
The firm’s research director Louis Christopher said tenants would still have to wait a while for the market to soften, but “the days of 10 to 20 percent annual rent increases are over.”
(tags to translate)dailymail
