1 week ago
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Thomas McGlynn, president of the Real Estate Institute of NSW, has watched the vendor advocacy phenomenon grow steadily over the past few years.
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“Agents need to understand that there is a need for this because of how people feel about agents and how stressful choosing one can be.”
But he said sellers should proceed carefully because vendor advocates are not yet governed by state-level regulations like buyer’s agents are.
He also questioned whether vendor advocates should be paid out of the real estate agent’s commission.
“If you are appointing someone to represent you, you probably should be remunerating them directly,” he said.
“Buyer’s agents are paid directly by the buyer, and that ensures that they are representing the buyer’s interests, rather than aligning themselves with the selling agent.”
Saturdays can be busy in real estate, but a vendor advocate can offer an extra pair of hands.Credit: Oscar Colman
Buchanan advised the Greenes to paint and recarpet their home and undertake minor renovations upstairs. She organised the relevant tradespeople on their behalf.
“The process was seamless,” Greene said. “Because of her contacts, Julie was able to get people there promptly.”
Buchanan then solicited proposals from prominent agents in the area, whittling down the shortlist in consultation with the Greenes.
Working with the couple’s chosen agent, she oversaw property styling, photography and open homes.
The Greenes received an attractive offer and sold the property before the scheduled auction.
“We certainly were very happy with the price that we got, and Julie was a key reason we achieved that,” Greene said.
Buchanan said most of her clients lead busy lives like the Greenes. Many distrust real estate agents.
“What’s valuable to them is knowing that someone is watching their back and has their best interests at heart,” she said.
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A vendor advocate acts as a trusted extra pair of hands, Buchanan said.
“It could be as simple as arriving early to an open home and making sure the house is set up properly. Agents are rushing from house to house on a Saturday, but with us, they know they can turn up to a house and it’s ready to be shown.”
Fiona Martin, principal of Melbourne vendor advocacy firm Golden Alliance and a former real estate agent, decided to represent sellers after seeing how other agents were conducting business.
“Most agents have a very transactional approach. It’s not that they’re trying to do the wrong thing by their clients, but essentially, that’s what ends up happening, because they’re working for themselves and doing what is easiest and fastest.”
An effective vendor advocate holds a selling agent to account, Martin said.
“I’m essentially the agent’s colleague throughout the sale. We work on everything together, and that benefits the vendor because it keeps the agent working hard throughout the sale.”
Martin would welcome increased regulation of vendor advocacy. She urged sellers to do their due diligence.
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“Absolutely, there are transactional vendor advocates, same as there are transactional selling agents. You have to be really careful about who you pick.”
She said some vendor advocates did little more than manage communications.
“They will put themselves in the middle, between the vendor and the agent, and not allow transparent communication, so it looks like they’re taking initiative, but all they’re doing is passing messages between the parties.”
McGlynn said sellers who could identify conscientious and professional real estate agents themselves had little need for a vendor advocate.
But he conceded that not all sellers had the time or the savvy to identify such agents.
“For those people, there is a definite need [for vendor advocates], and that’s why I see this trend continuing.”
