How to protect yourself from real estate rip-offs

You might remember hearing last week about the case of an elderly couple who claimed they were ripped off by a real estate agent?

The case appeared on A Current Affair, where the couple claimed the man had shown up on their doorstep, convinced them to sell their home and charged them a 7% commission. 

The agent later changed the commission to 2.2% after pressure from the elderly couple’s children and the media.

So how can you stop something like this from happening to you?

While the Real Estate Institute of Victoria wasn’t able to comment directly on the A Current Affair case, they were able to provide some tips for dealing with real estate agents.

REIV president Joseph Walton told Starts at 60 said the real estate market was competitive, which meant as a seller you are in a strong position to negotiate commission fees with agents.

 “Your home is often your most valuable asset so before selecting an agent it’s important to understand their commission fees and marketing strategy,” he said.

Here are some of Walton’s tips for protecting yourself from being ripped off by a real estate agent:

1. Make sure you get appraisals from at least three sales agent before choosing one to sell your home.
2. Attend a few open houses or auctions to see how different agents conduct themselves and their knowledge of the local area.
3. Ask the agents what services they provide, and what their commission fees and market expenses are.
4. Remember that standard commissions range between 1.5 and 2.5%, depending on the real estate agency and the area they operate in.
5. Remember the cheapest agent might not always be the best.
6. Take your time, and if you have doubts, seek independent legal advice.

Depending on what state you are in, there are various places you can turn to for advice and support if you need to.

The Real Estate Institute of Victoria offers a free information phone service from Monday to Friday, 9am to 4.30pm, on 03 9205 6666.

As well as:

The Real Estate Institute of South Australia from Monday to Friday, 9am to 4pm, on 1800 804 365.

The Real Estate Institute of Western Australia from Monday to Friday, 9am to 12pm and 2pm to 5pm, on 08 9380 8200.

The Real Estate Institute of Queensland from Monday to Friday, 8.30am to 5pm, on 07 3249 7347.

The Real Estate Institute of Tasmania from Monday to Friday, 8.30am to 5pm, on 03 6223 4769

The Real Estate Institute of the Northern Territory on 08 8981 8905.

The Real Estate Institute of the ACT on 02 6282 4544.

Have you ever been ripped off by a real estate agent?