The Real Estate Institute of Western Australia (REIWA) has long been a beacon for real estate professionals, setting standards and recognising achievements within the industry. However, there’s a glaring issue with their current awards system: the celebration of high sales volumes. This misguided emphasis is warping the priorities of real estate agents, pushing them towards quantity over quality, to the detriment of their clients.
Quantity Over Quality: The Dangerous Pursuit of Volume
When accolades are dished out based on the sheer number of transactions closed, it creates a precarious environment. Agents are incentivised to churn through deals at breakneck speed. The more properties they sell, the higher their chances of being recognised by REIWA at their annual awards and the better they can market themselves to homeowners. This leads to a frenzied race where the endgame is volume, not the quality of service or the satisfaction of the client.
In this pursuit, the individual needs and desires of clients can get lost in the shuffle. Instead of taking the time to secure the best possible deal for each property, agents might prioritise new sign ups and quick sales. This approach can lead to suboptimal outcomes for sellers, who might be pressured into accepting lower offers just to expedite the process.
The Erosion of Trust and Performance
This volume-centric approach corrodes the trust between agents and their clients. Sellers entrust their agents with one of their most valuable assets, expecting them to act in their best interest. When agents are primarily motivated by the prospect of high sales volumes, this trust is undermined. Clients may start to feel like mere numbers in a transaction mill, rather than valued partners in a significant financial journey.
Moreover, the focus on volume can dilute an agent’s performance. High sales numbers do not equate to high-quality service. An agent might be spread thin closing deals left and right, but if these transactions are not yielding the best possible outcomes for clients, then the agent’s performance is inherently lacking. The current REIWA awards system fails to account for this crucial distinction.
A Proposal for Change: Rewarding High-Quality Outcomes
To realign the industry’s incentives with the best interests of clients, REIWA needs to overhaul its awards criteria. Instead of lauding agents for the number of properties sold, the focus could shift to the prices achieved in specific property categories. This shift would place a premium on the agent’s ability to negotiate and secure top-dollar deals, directly benefiting their clients.
Imagine an awards system where agents are recognised for achieving the highest prices in categories such as family homes, luxury properties, or investment units, or suburb records for 3×1 or 4×2 homes. This would encourage agents to hone their negotiation skills, deeply understand market trends, and strive to exceed client expectations. Clients, in turn, would benefit from higher sale prices and more dedicated service.
Aligning Incentives with Client Interests
Such a transformation in REIWA’s awards system would foster a culture where the agent’s success is intrinsically linked to the client’s success. Agents would be motivated to invest more time and effort into each transaction, ensuring that every sale is optimised for the best possible outcome. This alignment of incentives would elevate the industry standard, leading to more satisfied clients and, ultimately, a more trustworthy and effective real estate market.
Conclusion: The Path Forward
The current REIWA awards system, with its emphasis on high sales volumes, is fundamentally flawed. It drives agents towards a quantity-over-quality approach, eroding trust and undermining performance. By shifting the focus to rewarding agents for achieving the highest prices in specific property categories, REIWA can realign the industry’s incentives with the best interests of clients. This change would not only enhance the quality of service provided by agents but also lead to better financial outcomes for property sellers. The path forward is clear: it’s time for REIWA to prioritise quality over quantity and restore the true meaning of exceptional performance in real estate.
