Buyers of commercial property deserve agents with specialist knowledge: REINSW
Real Estate Institute of NSW president John Cunningham slammed unqualified real estate agents selling and leasing commercial properties, calling it “a bit of a joke”.
“A lot can go wrong if you are dealing with an inexperienced, unskilled agent,” Mr Cunningham said, citing a commercial property in Sydney’s eastern suburbs which had been underpriced by a residential agent by $3.5 million.
“That is why the commercial industry has gone down the path of requiring higher qualifications.”
REINSW President John Cunningham is pushing for greater accreditation requirements for the industry. Picture Supplied.
The founder of Cunninghams Real Estate Agency is pushing for stricter training and national accreditation requirements within the industry for both residential and commercial real estate licenses.
“It has really become a bit of a joke in our view,” Mr Cunningham said.
“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.
“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.”
Residential agents can enlist the help of a commercial agent when dealing with commercial property. Picture: Supplied
The industry authority added that a business degree is a general prerequisite to work for a major commercial firm, where specialist agents are experts on land tax, council regulations, zoning, strata, height restrictions and leasing incentives.
Commercial-specific market knowledge, a strong database with potential commercial clients and networks with lawyers and strata managers are other assets commercial specialists have.
“The professional has it all wrapped up – both the technical knowledge and market knowledge,” Mr Cunningham said.
“The qualifications to get a (real estate) agent’s license don’t take that into consideration.”
Commercial agency Pine Property’s director Patrick Kelleher said agents dealing with commercial property who don’t have specialist knowledge are doing their client “a disservice”. Picture: Supplied
Patrick Kelleher, director of commercial agency Pine Property, said residential agents should work with commercial specialists who could “help achieve the highest possible rates per square metre or sale price” for commercial property.
“It combines the existing relationship with the expertise of the commercial agent who can provide an independent analysis,” Mr Kelleher.
“If you don’t hold that commercial knowledge you are doing your client a disservice (and) for the inexperienced, it has the potential to cost the client dearly.”
