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Real Estate Agents Unveiled: A Lawyer's Practical Guide to Selection and Collaboration
Published in
May 2025
Real estate agents often get an unfair rap. It's easy to criticise them when things go sideways—but in reality, most agents are genuinely good, honest, enthusiastic people who work extremely hard in a competitive environment. We know this because, as lawyers, we deal closely with agents every day, working alongside them to help you buy and sell property smoothly.
Agents typically only get paid when a deal settles, which means all their behind-the-scenes work—viewings, marketing, countless phone calls and emails—often goes uncompensated. This structure naturally motivates them to bring deals together effectively and efficiently, but it can also create pressures that clients need to recognise and understand.
So, what can you do to make sure you're choosing the right agent—or working effectively with the one already involved in your transaction?
For Sellers: Selecting Your Agent Wisely
Selecting a real estate agent might initially seem straightforward: ask friends who sold recently, pick someone friendly, or go with the agent who promises the highest sale price. But we encourage our clients to dig deeper, particularly because an agent's real value shows when transactions become complicated.
When things go smoothly—quick offers, straightforward negotiations, no legal issues—any competent agent can look excellent. But real estate deals frequently encounter bumps along the road: complicated negotiations, title or LIM issues, or challenging market conditions. It’s in these moments that the difference between a good and a great agent becomes clear.
Practical Tips for Vendor Due Diligence:
Ask for Challenging References: Instead of solely speaking to an agent's most successful clients, ask if you can also speak to someone whose sale didn't go perfectly. Just like references from someone who left a job, these testimonials are often candid and highly insightful.
Look Beyond Price Estimates: Beware of automatically choosing the agent who quotes the highest potential sale price. Realistic, data-supported valuations are better indicators of an agent’s integrity and market knowledge.
Compare Marketing Strategies: A strong marketing strategy tailored specifically to your property and area often makes a big difference. Ask agents to clearly explain their plans and why they believe their approach will succeed.
Leverage Your Lawyer’s Experience: Lawyers, particularly those focused on property transactions, regularly interact with many agents across numerous deals. Your lawyer may offer valuable insight into which agents consistently perform well—especially in complicated scenarios.
For Buyers: Working Effectively with Agents
For buyers, it's vital to remember that the listing agent primarily works for the vendor. While this doesn't mean they're not helpful or trustworthy, their legal obligation is to achieve the best possible price and terms for their client—the seller. Understanding this dynamic helps you keep clear boundaries and realistic expectations.
Practical Tips for Buyers:
Stay Sharp and Informed: Use agents as a source of valuable information about the property and neighbourhood, but ensure you conduct your own thorough due diligence. Independent checks, such as obtaining LIM reports and professional inspections, are essential.
Clear Communication: Be clear with agents about your needs, but maintain a healthy perspective that their ultimate duty is to the vendor.
Contracts: “Standard” Doesn't Mean Simple
Agents often describe sale and purchase agreements, listing agreements, and other documents as "standard"—and they usually are. But standard agreements still involve significant obligations, responsibilities, and risks. We understand it's not always practical or cost-effective to consult us every time, particularly for straightforward transactions. However, we strongly encourage at least a quick legal check-in on anything substantial or unfamiliar. This simple step often saves complications down the track.
How Your Lawyer Can Help
As lawyers, we don't just offer traditional legal services—we also offer insight into the broader property market and the professionals working within it. We regularly observe agents in action and witness firsthand how they handle pressure, negotiate conflicts, and manage complex situations. Whether you’re selling and want a recommendation or buying and need reassurance about dealing with an agent, we’re here to help.
Next Steps: We're Here to Help
If you're considering buying or selling a residential property, feel free to get in touch. We're happy to share our experiences and insights about real estate agents throughout Auckland. And of course, we're always here to review, explain, or help you negotiate agreements before you sign—ensuring peace of mind every step of the way.