Calls grow for increased agent accreditation
The head of the Real Estate Institute of NSW is calling for tighter accreditation controls for commercial property agents.
REINSW president John Cunningham says the process to become a qualified real estate agent is inadequate, particularly for those moving into commercial property, which he says is “highly technical and far more complex” than residential.
Cunningham says good commercial agents are among the “most qualified in the country”, with a business degree often required in order to gain employment at a major firm.
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But he points out that many residential agents are also working in the commercial space without the right knowledge or expertise.
“When you are dealing with commercial property there are a lot of considerations a residential agent doesn’t even go into. A lot of highly technical and financial knowledge is required,” Cunningham says.
“It has really become a bit of a joke in our view. You can become a real estate agent in less than a day’s training and get your license from a dodgy RTO in a matter of weeks without having any experience whatsoever.”
A lot can go wrong if you are dealing with an inexperienced, unskilled agent
The REINSW is calling for agent accreditation requirements to be increased as part of a national recognised licence.
Among the experience that Cunningham says commercial agents need to have is knowledge of health and safety requirements, land tax, council regulations, zoning, strata, height restrictions and leasing incentives, which include rent-free periods and fit-out contributions.
Cunningham says agents without the requisite skills could cost their clients dearly, with one agent in Sydney’s reportedly underpricing an eastern suburbs commercial property by $3.5 million.
“That is why the commercial industry has gone down the path of requiring higher qualifications,” he says.
“A lot can go wrong if you are dealing with an inexperienced, unskilled agent.”
Pine Property agent Patrick Kelleher says residential agents who want to service a commercial property client but don’t have a background in commercial property should seek to work in conjunction with a commercial specialist.
“It combines the existing relationship with the expertise of the commercial agent who can provide an independent analysis and help manage the campaign, condition and educate buyers and tenants, and ultimately help achieve the highest possible rates per square metre or sale price,” Kelleher says.
