Unless you've been living under a rock, you'll know there has been a lot of talk lately around the need for the real estate industry to raise its professional standards, such as increasing entry-level criteria and improving education.

Industry bodies around the country have been implementing initiatives to do so, which has garnered mixed support from State Governments.

PRDnationwide Chairman and Managing Director, Tony Brasier says consumers have always regarded real estate as one of the least credible industries. He says buyer's agents would help lift this negative perception.

"A critical missing element of a drive to professionalism is strong advocacy for buyer's agents. An agent representing a seller and another representing a buyer would have a game-changing impact on consumer protection, service delivery and ultimately the reputation of real estate agents.

"We have slowly seen the emergence of buyer's agents over the past 10 – 15 years, and although this trend will gradually keep increasing, an acceleration is required to effectively drive professionalism throughout the industry," Mr Brasier told WILLIAMS MEDIA.

Mr Brasier says a strong consumer campaign, implemented by all Real Estate Institute's (REI's) as well as State Governments to promote an agent on both sides of a property transaction would be a step in the right direction. 

"My experience over the past 40 years is when a problem arises in a real estate transaction, it is usually the purchaser feeling aggrieved and blaming the vendor’s appointed agent for a specific problem. The purchaser wrongly believes the agent is acting for them when in fact they are being retained by the seller. Although the majority of agents would be trying to act in the best interests of the purchaser, they are legally bound by their agency agreement with the vendor and must give priority to that relationship.

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"An agent on both of sides of the sale would ensure both parties interests are evenly represented, resulting in far fewer consumer issues and an improving image of agents generally," Mr Brasier said.

It's fair to say that the biggest financial decision most people will ever make in their lives is the purchase of a house or investment property. Yet, it's one of the least regulated professions.

"Most other professions, including legal, accounting, stockbroking and insurance represent their clients on both sides of most types of financial transactions. Yet, the largest financial commitment the majority of people make in life (buying a house or investment property) is mostly concluded without appointing a professional to represent them in locating and negotiating the acquisition," Mr Brasier told WILLIAMS MEDIA.

While buyer's agents are everywhere in the US and UK, it's a relatively new concept in the Australian residential market.

"The National Association of Realtors in the US quote 67 per cent of consumers would definitely use their agent again in future transactions – an agent acting for the buyer and another agent for the seller would be a strong contributor to this high percentage," Mr Brasier said.

"In the Australian commercial sector, the agents representing a buyer or tenant has grown significantly over the past 20 years, however, for some reason, the take-up of the buyer's agent concept in residential has been much slower where higher levels of inexperienced consumers should require greater protection.
  
"To truly create higher levels of professionalism in the residential sector, raising educational standards and training requirements alone won’t create the desired outcomes. Consumer protection based on specific professional representation will. Agents will never become the ‘trusted advisor’ until vendors and purchasers each have an agent acting for them.

"The industry and Governments should embrace the concept and promote it as the recommended practice moving forward," Mr Brasier concluded.

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