Airing out the Laundry: 5 Things your Real Estate Agent probably doesn’t want you to know
Lydia Taylor April 21st, 2008
The Real Estate Industry has a pretty slimy reputation. And I’ll be the first to agree with that assessment- and you know what? I think a lot of professional real estate agents would agree! There are lots of reasons for this. For one thing, most states have very lax rules on who can be an agent, and the licensing exams are not that much of challenge. As a result, some real estate agents are less than qualified to actually hold a license and be trusted with six figure transactions. And since real estate agents work so closely with the mortgage and lending industry, both groups get tarred with the same dirty brush. Then there are the outside groups that come in the equation- companies and websites that try to supply buyers and sellers with worthless information and lousy marketing, and then sell their contact information to lead hungry agents that harass them at every turn. It’s no small wonder most people hate real estate agents. Professionals (and I’ll humbly put myself in this group) hate all this because we really try to do the best for our clients and hold their trust in the highest regard.
And with that introduction, I’d like to take a shot at airing out a little dirty laundry: how would you like to know what many real estate agents don’t want you to know?
- Many real estate agents are part-time workers. Yes, lots of the people that actually hold a license have a second job since they don’t make very much money in real estate. They either are very poor at marketing (don’t list your home with these people), try to pick up a few extra bucks now again helping family members, are semi-retired or homemakers, or just have so little drive and ambition they never get anywhere. Do your homework- stick with a full-time agent who is fluent with contracts and negotiating techniques, is up-to-date with the current market trends, and has been successful marketing themselves and their listings. You deserve as much. As you are reading this, think about how many agents don’t even have a blog or a horn on the internet to promote your home (like this blog or my main website).
- The majority of real estate agents don’t want you to know the business they’ve done. Why? Either they fall solidly in the first group, or they fall in a second category: about half the licensed agents in the US sell only 1 (or no) houses per year. Yes, you read that correctly. Many license holders handle less than 2 transactions per year. There is a good reason- many professions require or encourage you to get a license even if you don’t actually handle sales (like property management firms). Still, proof of business is one reason I show you my Recent Sales. I really almost have to, because usually I move my listings so quickly I look like I have nothing going on! Overall, something like half of all real estate agents wash out of the business in less than 3 years.
- Many agents can’t handle routine paperwork correctly. Have you actually read, much less filled out, a Georgia Real Estate Sales Agreement? Well, of course you probably haven’t, and that is too bad, because they make great bedtime reading (sarcasm)! Boring or not, these are legally binding documents- it is critical that they be understood, and filled out correctly and precisely. I would run out of fingers and toes before I counted up how many times I’ve seen errors in contracts. I’ve no idea how some agents stay in business. Once again, try to stay with someone who has been around the block a few times. Chances are, they know the ins-and-outs of contract writing.
- Home buyers can look at as many houses as they want to. Now why is this on the list? Because many unfortunates have been booted after looking at only 3 houses! A lot of old school agents used to have a rule: if a home buyer nixed the first 3 houses they were shown, the agent would give up on them, “A waste of time!” and move on to some other profit-generating activity. Strangely enough, this is often still the case- I hear buyers talk about it all the time. I’m not saying I’ll show you a hundred houses… After all, I’ve got tons of paperwork, marketing, and other activities to do, not to mention other buyers I need to show homes to as well! But, you deserve a fair look at the market, and you deserve to find the house of your dreams (if it’s out there). If you go out house-hunting, don’t see anything you like, and suddenly your agent plays hard-to-get, give me a call, please, because I value your business. Only once have I brought in another agent to help me with a buyer because they were too much of a strain on my time.
- They don’t bother (or know how) to do a CMA (Comparative Market Analysis). A CMA is a critical part of the home buying or home selling process. In short a CMA is an analysis that takes into account recently sold prices for comparable properties in the immediate area of the home in question. For example, if you wish to purchase a 3-bedroom, 2-bath home listed for $150,000, your Realtor should perform a CMA on that home to see the prices other 3-bedroom homes in the area with similar amenities, square footage, and layout sold for. If other comparable homes in the immediate area are selling for an average of $135,000, your offer should reflect that! Likewise if you are listing a home for sale, the CMA will tell you the fair market value of the home so you can set your asking price correctly. If you have bought or sold a home before, did you get a CMA? I think many people will say “No” to that, because many real estate agents don’t bother to do it. Even I bought and sold two homes of my own (before I entered real estate as a career) and both times I did not know that I should have seen a CMA to inform myself as to real market values. Protect yourself: Make sure your agent does a CMA for you when considering buying or selling a home.
Well that’s about enough dirty laundry for one day. I’m not writing this to deter home buyers and sellers. Anything but! I am proud of what I do, I love my job, and want to leave the profession a better place. And there ARE lots of really good and professional Realtors out there. In fact, I am hoping a few of my pro Realtor friends will drop by and let us know more (good and bad) in the comment section. ‘Till next time, and keep yourself armed with information!
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- Comments(4)
I ran across an interesting post proving my point about getting a CMA. You can find it here:
http://www.ericbramlett.com/blog/buyer-suing-real-estate-agent-in-california/
great post!
Now that’s very unfortunate for home buyers.
But one thing for sure, if you want to last in this industry,
excel at your work, and earn handsome commissions, one
must be skillful and competitive enough to handle the things
that you have mentioned.
Good thing I’m a real estate investor, not an agent.
Thank you for bringing this topic up. As a listing agent in Austin — I see this all the time. I get calls from mostly younger buyers who want ask me questions about my listings. Sometimes they want me to show them the property. When I ask them the obligatory “are you working with an agent question” they say, “well– I am going to use my friend in Real Estate.” Then I press them further, why doesn’t your “friend in Real Estate” show you the house.
Then I figure out that some co-worker of theirs is a part time agent and they have somehow enrolled their friend in using them to do little more than write up the contract for a commission. Sometimes that “friend” has agreed to kick back some portion of the commission. Sometimes not. But its really crazy that people would choose representation by someone with no expertise at all.
I feel like asking them, are you using your “friend in real estate” or is your “friend in real estate” using you?
I am also very surprised at the number of homeowners who are willing to give listings to Realtors with very little web presence. And very little knowledge of online marketing.
People have to realize that just because someone has a real estate license doesnt mean they are truly qualified to represent them in the their largest purchase to date.