What Is the Biggest Complaint About Real Estate Agents?
When dealing with real estate agents, complaints often arise when clients feel their needs aren’t met or the process falls short of expectations. In Australia, the most common grievance is poor communication, but a variety of other issues, such as deceptive practices and lack of transparency, also generate frustration. In this article, we’ll explore the biggest complaints about real estate agents, differences in how they’re handled across Australian states, and what clients in Gawler and surrounding suburbs can do to avoid these problems.
The Biggest Complaint: Poor Communication
Poor communication tops the list of complaints about real estate agents. Buyers and sellers expect regular updates and clear, concise information. When agents fail to deliver this, clients are often left feeling frustrated, neglected, and unsure about their property’s progress.
Common communication problems include:
- Lack of updates: Clients may feel that agents aren’t providing timely feedback on inspections, offers, or market conditions.
- Mixed messages: Inconsistent communication can lead to confusion about pricing, contract details, or the negotiation process.
- Overpromising: Some agents may inflate their promises about what they can achieve in terms of price or timeframe, leaving clients disillusioned when expectations aren’t met.
In fast-growing areas like Gawler, where properties move quickly, buyers and sellers can’t afford to be left in the dark. It’s essential to choose an agent who prioritizes open and frequent communication.
Other Common Complaints About Real Estate Agents
- Deceptive Tactics: Another common grievance in the real estate industry revolves around deceptive practices. At Gawler East Real Estate, we have seen firsthand how some agents attempt to secure listings by providing inflated appraisals without sufficient market data to back up their claims. This approach appeals to vendors eager to achieve a higher price for their property, but it often leads to disappointment later on when the market doesn’t meet those inflated expectations. You can read more about these tactics in our dedicated post on Agents Deceptive Tactics.
Once the agent has the listing, they may begin the process of “conditioning” the seller—gradually lowering their expectations to align with actual market values. In some cases, the agent might even suggest an auction, where the true market value is revealed through bidding. While auctions serve to highlight an accurate market price, this tactic often leaves vendors feeling misled.
A Four Corners segment aired in March 2023 highlighted these deceptive tactics, particularly overquoting, which remains a prevalent issue in many Australian real estate markets.
Overquoting: A form of deceptive practice, overquoting occurs when agents present exaggerated estimates to sellers, only to later adjust the price once they’ve secured the listing. In New South Wales and Victoria, underquoting is heavily regulated, but complaints persist. Sellers in South Australia, especially around Gawler, should be vigilant and ensure that their agent provides data-backed appraisals.
High Fees and Lack of Transparency: Many clients feel that real estate agents charge excessive fees, often without adequately explaining their commission structures. In some cases, additional costs, such as marketing fees, may not be disclosed upfront. Clear, transparent discussions about fees are critical to building trust between agents and clients.
Lack of Local Knowledge: For sellers in regional markets like Gawler, a lack of local knowledge is a major concern. An agent unfamiliar with the area may price a property incorrectly, market it poorly, or miss out on potential buyers. Working with an agent who knows the Gawler market intimately is key to achieving a successful sale.
Regional Differences in Complaints
Across Australia, complaints against real estate agents can vary depending on state regulations and local market conditions:
New South Wales & Victoria: In NSW and Victoria, underquoting is a significant issue. Despite stringent laws against underquoting, many agents continue to list properties with unrealistic price guides, leading to client frustration when expectations aren’t met.
Queensland: In Queensland, complaints often focus on inconsistent service levels, particularly in rural areas where agents may be less regulated or face fewer competition pressures.
South Australia: In SA, poor communication and deceptive practices like overquoting are prominent concerns. The South Australian Consumer and Business Affairs department handles formal complaints against agents and can assist in resolving disputes. If you’re based in South Australia and have a complaint, you can visit Consumer and Business Affairs to start the complaint process.
Protecting Yourself from Common Complaints
To avoid the frustrations associated with real estate agents, here are a few steps you can take:
Choose an Agent Who Communicates Well: From the beginning, ensure your agent sets clear expectations for communication—whether that’s through phone, email, or in-person meetings. You should receive regular updates about viewings, offers, and other key developments.
Work with a Locally Knowledgeable Agent: Especially in regional markets like Gawler, it’s important to choose an agent who understands local conditions, pricing trends, and buyer preferences. They should be able to provide comparable sales data and a detailed marketing plan tailored to the area.
Watch Out for Inflated Appraisals: Be cautious of agents who provide inflated appraisals to secure your listing. Ask for data that supports their price estimate, and don’t be afraid to seek a second opinion if their numbers seem too good to be true. Gawler East Real Estate is committed to providing accurate, data-backed appraisals to ensure that your property is marketed effectively from day one.
Understand the Fees Upfront: Make sure your agent explains their fees, including commission rates and any marketing costs, before signing a contract. This will help you avoid any surprises later on.
What to Do If You Have a Complaint
If you’re unhappy with your real estate agent and feel your concerns aren’t being addressed, there are several steps you can take:
Raise the Issue Directly: Sometimes a simple conversation can resolve misunderstandings. Clearly explain your concerns and give your agent an opportunity to address them.
Seek Mediation: Many real estate agencies offer mediation services, which can help resolve disputes without the need for formal action.
File a Formal Complaint: If the issue persists, you can file a complaint with your state’s consumer affairs body. In South Australia, complaints are handled by Consumer and Business Affairs, where you can submit a form to start the dispute process. Visit SA Consumer Affairs for more details.
Conclusion
The biggest complaint about real estate agents—poor communication—can often be avoided by selecting the right agent from the start. Additionally, being wary of deceptive tactics, understanding fee structures, and working with an agent who knows your local market can ensure a smoother, more successful real estate experience.
If you’re selling or buying property in Gawler or the surrounding suburbs, Gawler East Real Estate offers trustworthy service, deep local expertise, and a commitment to transparency. Read more about the deceptive tactics used by some agents in our Agents Deceptive Tactics post, and be sure to choose an agent who always has your best interests in mind.
For expert advice and assistance in navigating the property market, contact Gawler East Real Estate today!
