We're beating up the wrong person again...

A taxi driver I rode with recently, upon learning I was a real estate agent during our conversation, said, "You're always the ones raising these prices..."

Now that I've read the news that an investigation has been launched in Konya against real estate agents as well as property owners for making exorbitant rent increases, I wanted to jot down a few words, at least to clean up my own act…

I would appreciate it if you read it...

I asked the taxi driver, "Why do you think real estate agents raise prices?" He confidently replied, "To make more money, of course..."

But is that really the case? Do we actually earn more when prices go up? Do we make more trades?

Actually, it's the opposite...

Unfortunately, many people either don't know or pretend to forget that the price of something is determined by its supply and/or demand. When a price is set above what is naturally determined by supply and demand, that product or service will not be in demand and will not be sold. Economics 101…

In other words, by comparing the pros and cons of its alternatives and observing that it has a reasonable level of demand, a property valued at, say, 10 million TL cannot be sold for 12 million TL. It won't find a buyer…

I'd also like to take a moment to address those property owners who might say, "You can sell it for a higher price... You can add to it..." No, unfortunately, I can't sell it for a higher price.

While I wholeheartedly wish for every client and friend to maximize their profit, whether buying or selling, the price is determined by the market, not by me, and neither I nor any of my colleagues possess a magic wand. One of our many responsibilities when determining pricing is to make fair comparisons and to accurately determine the price based on data gathered from the field and our experience. The rest (in short) is about effective marketing, effective communication, and effective process management...

Our service fee is not the money we earn from the sale of properties, but rather the total cost of the services and consultations we provide to those who sell their properties, both before and during the sale process. All these services and consultations are provided for all properties that are sold or leased, or for any reason, those for which a fee is charged are only for properties that have been successfully sold or leased.

In summary, if a real estate consultant misleads a property owner and overprices them, the transaction will not happen. Furthermore, they will not be entitled to any fee. On top of that, they will have knowingly incurred unnecessary expenses and/or wasted valuable time on properties whose transactions they failed to complete.

In fact, as alleged, a malicious real estate agent, only concerned with their own profit, might want the price to be below its actual value. They want the property to become a "bargain," thus increasing the number of buyers and ensuring a quick and easy transaction.

Because – and it's worth reiterating – while almost all professions pay for time spent, expenses incurred, services provided, and consultations, regardless of success or failure, we only earn payment and receive compensation for our labor when the process is successfully completed.

So, while it's a separate debate who actually deserves a metaphorical "beating," I hope we give up our habit of beating the wrong people or the easiest options available.