It’s hard to say
which has changed the world of real estate more—the state of the economy, or
the Internet revolution. With more power and knowledge going to the buyer than
ever, the old rules no longer apply. Before you hire a real estate agent in
this new climate, here are some things you need to know.
Number one: just because your cousin,
friend or cousin’s friend just got her real estate license and joined a firm does not mean they know what they are
doing. Unfortunately, real estate
school is about learning to pass a government exam, which includes a puzzling
section on ethics. If I need to study up so that I can prove that I don’t
discriminate based on race, sex or handicap, then I sure as heck shouldn’t be
trusted with anyone’s home!
This is all to say
that real estate courses teach you nothing about solid deals and good business,
which are what really matters in real estate. An agent fresh out of school is
like a hairdresser who has just learned all about the history of hairdos. And here’s something to think about—your
hairdresser has almost certainly spent much longer in professional training
than your real estate agent.
 |
| credit: beaut.ie |
Number two: the amount of listings your
real estate agent has doesn’t matter. Anyone can list a house—the real issue is
selling it.
I have a friend
who has over 40 listings. She must be a top producer, right? Wrong. I run with
her a few days a week and every time, as we’re running, she gets calls from
angry sellers who feel neglected. She signs the listing up, then the seller
never sees her again. You want someone who will care about getting your house
sold, not getting listed on the firm website as part of the Top Producer Club.
 |
| credit: agentharvest.com |
Number three: more time on the market
will get you less money. If your agent asks for a 12 month listing, run!
I’ve
seen my fair share of real estate firms teach their agents to take listings at
a high price and walk the client down later, once they’re locked in. So don’t
let an agent’s high number give you an unrealistic idea about value. Even if
they list your house at an incredibly high price, they’ll often accept a low
offer for you and tell you it’s the smartest move you could make. It’s fun to
dream sometimes, but this market is not the time for dreaming. If your house is
overpriced, all you're doing is helping your neighbors sell their more realistically priced home.
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