💸 when cash raises suspicions...

GOOD MORNING FROM ELITE AGENT

Good Morning👋 from Elite Agent

Here’s something to smile about. When a homeless man found a $10k cheque, his first thought was to return it. Real estate broker Roberta Hoskie, the owner, was stunned by his honesty. Moved by his honesty, she gave him more than just thanks - she found him a home, paid seven months’ rent, and what’s more - put him through real estate school.

Today’s read time: 4 minutes, 28 seconds.

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LEGAL

Would you know if you've been involved in a money laundering transaction?

A report from the Australian Institute of Criminology (AIC) and AUSTRAC is throwing some serious shade at organised crime’s dirty tricks, linking them to money laundering through real estate - but unfortunately, agents are left with little more than a shrug when it comes to fighting back. Leanne Pilkington, President of the Real Estate Institute of Australia (REIA), pointed out that while money laundering hits multiple industries, the financial sector takes the biggest hit, being targeted three times more than real estate.

But here’s the kicker: small real estate businesses are left playing detective without the tools or know-how to spot the shady stuff, and even with tougher rules, criminals just jump ship to less regulated markets. Kristen Porter, Director of O*NO Legal, didn’t hold back, saying money laundering is far from victimless - it’s the gateway to a whole criminal circus and she’s urging agents to be on the lookout for red flags. “It’s about making it a lot harder for serious crime to take root here in Australia.”

Small real estate businesses lack the resources to detect suspicious activity

Many real estate agencies are small businesses that don't have the expertise, tools, or manpower to identify and address potential money laundering activities. The report also notes that stricter regulations haven’t necessarily reduced money laundering but have led criminals to shift to markets that are less regulated.

Ms Pilkington said without sufficient support or training, small agencies are left vulnerable to becoming unwitting participants in illicit transactions.

Red flags for money laundering include unusual buying behaviour

Ms Porter outlined several warning signs that real estate agents should be aware of, including clients paying large cash deposits, purchasing properties without inspections, or making sudden changes to a transaction when you ask for more information. “Not every red flag means something shady is going on, but if your gut’s telling you otherwise or if you spot multiple warning signs, it’s time to dig deeper and be extra vigilant.”

Agents need to be ready to reject suspicious deals

Ms Porter advises real estate agents to create anti-money laundering (AML) programs that reflect their specific risk levels, which may vary based on the types of clients they deal with, the services they offer, and their geographic location. “For example, high risk looks like an overseas client from a high-risk country wanting to snap up a property fast with lots of cash and little questioning, while low risk is your local, long-term client with a clear track record and standard financing.” Agents should also be comfortable saying 'no' to deals that seem questionable, even if it means losing a potential sale.

ICYMI, yesterday we covered some tips on how to turn setbacks into comebacks

SMART SNIPPETS

Capital cities see listing surge
Spring is here, but we’ve already seen listings start to flood the market. New listings in Sydney, Melbourne, and Canberra hit their highest August levels in over a decade. PropTrack reports an 8 per cent monthly increase in capital city listings, and it could start to weigh on prices.

Higher standards for strata managers
Australia's strata management industry is facing a shake-up. Real estate bodies in New South Wales and Victoria are calling for increased professional standards amid reports of misconduct from the ABC. The REINSW warns of severe consequences for managers who fail to act in clients' best interests, while REIV is pushing for mandatory minimum qualifications.

Pancho Mehrota: How to cultivate calm in high pressure sales
In sales, the pressure to perform can feel overwhelming, but what if we could "harness that urgency without succumbing to crippling pressure?” Instead of viewing stress as the enemy, agents may find it a "powerful tool waiting to be wielded effectively." Managing the "fear of loss" that often drives stress is key to calming both ourselves and our clients, said Mr Mehrota, CEO of Frontier Performance.

”A shift in mindset, from fear-driven stress to intentional action, can be transformative.”

Rounding up your overseas investors
Agents can now market Sydney as a buzzing hub for art enthusiasts, with the city ranking as the fourth-best in the world for art lovers, beating out the likes of London, Paris, and Berlin! According to a recent analysis by Printful, Sydney is home to a staggering 1,469 pieces of street art, turning its streets into a colourful canvas, plus 66 art galleries for locals to explore.

SOUND WAVES

What does NASA have to do with selling real estate?

In today’s curated listen, we find out why space data analysis and research goes hand-in-hand with selling luxury homes. Who knew?!

Read the original article from Real Estate Agent Magazine here

AGENTS ON SOCIAL

When your neighbour lists their house with another agent, it's like finding out they threw a party and didn't invite you … except this party has a giant "For Sale" sign that you have to drive past every day. 😬🙅🏼‍♀️

Seen an Agent On Social we should include? Let us know here (email link)

Wishing you a productive day

Elite Agent is crewed by Mark Edwards, Catherine Nikas-Boulos, Rowan Crosby, and Samantha McLean. We aim to uplift the real estate industry by delivering forward-thinking, hype-free news and education that fosters knowledge and fuels ambition.

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