| Let me start by offering my credentials. After all, | | | | bombard the homeowner with "expert" opinions |
| what good is advice from someone who lacks | | | | about the value of the home to remove any |
| any credible knowledge or experience on the | | | | doubt that the homeowner should not only list |
| topics about which he or she purports to be an | | | | with that agency, but should also list at the |
| expert? | | | | suggested and over-inflated price. What do you |
| I was a licensed real estate agent in New England | | | | suppose happens in nearly every one of these |
| (I am deliberately vague for reasons that will later | | | | scenarios? The homeowner becomes frustrated |
| become obvious). I took the courses required to | | | | when months pass without a contract and, out of |
| even sit for the real estate exam and | | | | desperation, reduces the price of the home. Such |
| subsequently passed the exam with one of the | | | | a drastic reduction in price signals many things to |
| highest scores on record for that state. Even my | | | | a potential buyer, none of which helps the seller. |
| broker was shocked to learn that I scored better | | | | The buyer will think that the home has significant |
| on my exam than he had. Thereafter, I became | | | | problems or that the seller is desperate to sell. In |
| a member of the National Association of Realtors, | | | | any event, the seller loses most, if not all, |
| earning the right to the title of Realtor. I paid my | | | | bargaining power and will either have to remove |
| required dues, and they were substantial, and | | | | the home from the market or accept much less |
| attended all the required continuing education to | | | | than they should to sell the property. |
| maintain my license and Realtor title. I was | | | | Marketing - more and more buyers are turning to |
| recruited by and joined the ranks of Century 21, | | | | the Internet to help them search for their next |
| the #1 most recognized and trusted name in real | | | | home. Very few buyers turn to newspapers or |
| estate, and endured several more weeks of the | | | | other periodicals anymore. Thus, as long as your |
| most intensive training in the industry. I completed | | | | real estate agent is a member of their regional, |
| an exhaustive course in marketing, wherein I | | | | online multiple listing service (MLS), then your |
| learned all the many facets of competing for | | | | home will have the same exposure as the other |
| listings and representation of buyers. In my first | | | | homes similarly listed. MLS services are great |
| few months as a licensed real estate agent, I | | | | equalizers. They generally have rules and |
| grossed more than $2 million in sales. Shortly | | | | regulations prohibiting any one agency from |
| thereafter, I left New England and my real estate | | | | developing advantages over another. |
| career behind. That, however, is another article in | | | | Nevertheless, this doesn't stop agencies from |
| its own right. | | | | attempting to create a perceived marketing |
| Thus, I have first hand knowledge of the many | | | | advantage over their competitors. Some will claim |
| tricks of the trade and marketing exploits | | | | that multiple ads in magazines, newspapers and |
| employed to win the confidence and, ultimately, | | | | other publications will give your listing more |
| the business of homeowners and buyers. Some | | | | exposure and, thus, sell your home faster. |
| of these methods are legitimate marketing tools | | | | Although such claims are not impossible, they are |
| utilized by reputable real estate agents. Others are | | | | extremely improbable given the overwhelming |
| nothing more than cons designed to manipulate | | | | propensity of buyers to rely on the ease and |
| naïve and, perhaps, desperate people into | | | | convenience of the Internet. So, be cautious if an |
| signing contracts that can, and usually do, result in | | | | agent claims to offer significant marketing |
| financial hardship for the unwary homeowner or | | | | advantages. |
| buyer. | | | | Brand Name Recognition - indeed, some agencies |
| Please do not misunderstand me. There are a | | | | will claim that its very name will provide you some |
| number of extremely dedicated and trustworthy | | | | advantage in selling your home. This rarely |
| agents out there. I have had the privilege of | | | | happens. The fact is that sellers just want to sell |
| working with some of them myself. Even so, I | | | | their home for as much as they reasonably can, |
| doubt I have to elaborate on the reasons why | | | | and buyers want to buy their home for as little as |
| real estate agents are the subject of so much | | | | they reasonably can. That's it. Neither could care |
| scrutiny and distrust. In recent years, real estate | | | | less what name appears on the listing. Some |
| agents have been the target of numerous | | | | people may claim some allegiance to a particular |
| lawsuits alleging fraud, misrepresentation and | | | | agency because that agency helped them in the |
| negligence. Much like lawyers and used car | | | | past or someone they know works there. |
| salesmen, real estate agents have earned a nasty | | | | However, I worked for the #1 ranked agency in |
| reputation as sleazy, money-hungry vultures in | | | | the world, and I can tell you with unabashed |
| polyester suits. I, for one, never wore polyester! | | | | honestly that it seldom helped me to compete for |
| More importantly, my extremely heightened | | | | listings. I lost listings to smaller, nearly unknown |
| sense of justice precluded me from mastering | | | | firms for a variety of reasons. |
| the finer points of consumer deception. My | | | | Experience and Reputation - this is, by far, the |
| opinions, therefore, on the tactics of some of the | | | | most important element in choosing a real estate |
| masters were not well received. | | | | agent, in my opinion. Other than the listing price, |
| The most disreputable of all the agents I knew or | | | | the only other factor that can make or break |
| had the misfortune of working with was, ironically, | | | | your plans to sell your home or buy a home is in |
| the hometown boy whom everyone knew and | | | | selecting an agent whose reputation and |
| believed to be honest. Despite the fact that this | | | | experience will work to your advantage. |
| man deviously plotted for months to open his | | | | Longevity in the business, while important, is not |
| own agency, while employed by a prominent and | | | | the only consideration. I know several agents who |
| long-established agency, and subsequently stole | | | | have more than ten years experience, yet cannot |
| agents and clients from his employer, the tiny, | | | | decipher the simplest contract terms. Scary, huh? |
| unaware community continued to offer him its | | | | You, the consumer, place your trust in these |
| support. What relevance does this have to my | | | | individuals. Don't do so lightly. Whenever possible, |
| article? This same man, who boasted about his | | | | choose a Realtor, as they are bound to abide by |
| rather lax standards and admitted with glee to | | | | a stringent code of ethics. Interview agents. Ask |
| selling the wrong property to a buyer, now claims | | | | them penetrating questions. Put them on the spot. |
| a significant portion of the real estate business in | | | | Ask for references, and actually call them. You |
| that area. He is charming, clean cut, and appears | | | | want results. You want an agent who has sold |
| to be knowledgeable. Before long, unsuspecting | | | | enough homes, successfully, that they have a |
| potential clients begin to feel comfortable with him | | | | large clientele and repeat business. Such an agent, |
| and actually buy into the cunning bill of goods he | | | | after taking your listing and pricing your home |
| sells. He is not unique. Therein lies the danger. | | | | correctly, will likely already have an idea of a |
| I am sharing this information with you now to help | | | | suitable bank of potential buyers for your home. |
| the average homeowner or buyer gain a much | | | | Now, I caution you to steer clear of marketing |
| deserved and overdue advantage in the | | | | scams used by even the most well-known and |
| treacherous world of real estate. | | | | successful names in real estate purporting to |
| Real estate agents earn their living strictly by | | | | have buyers waiting to buy your home. Incredibly, |
| commission. They do not get paid unless they | | | | I received such a postcard from an agent, |
| close a real estate transaction. In any given locale, | | | | employed by a prominent agency, claiming that I |
| there are literally hundreds (in some cases, | | | | should list my home with her because she had |
| thousands) of real estate agents all vying for a | | | | buyers interested in my home. Instinctively, I |
| very limited number of real estate closings each | | | | picked up the phone to question her about her |
| year. Competition is more than fierce. Therefore, | | | | claims. Of course, it was a scam. She was |
| agents are forced to find ways to set | | | | embarrassed when she found out that I was a |
| themselves apart from their competition. | | | | fellow agent, though she angrily tried to explain |
| Commission wars, like airline fare wars, are quite | | | | away her actions. Learn as much as you can |
| common. However, what use is a reduced | | | | about a real estate agent before you hire them. |
| commission if the agent you hire completely | | | | Found out if the agent is respected and involved |
| botches your transaction and causes you to lose | | | | in his/her community. Ask local lenders, home |
| your shirt anyway? | | | | inspectors and appraisers which agents in your |
| Real estate agents are shrewd salespeople. They | | | | area are reputable. These individuals work with |
| are quite adept at picking up on the fears and | | | | real estate agents every day. I guarantee you |
| naiveté of potential clients and will, | | | | they will have opinions and stories to share with |
| unfortunately, not hesitate to tell you what they | | | | you that may help you to choose the right agent |
| know you want to hear. They justify their actions | | | | for you. |
| with the argument that they, too, need to earn a | | | | Be Informed and Decisive - finally, know what |
| living and must protect their income stream. Who, | | | | your goals are in selling or buying a home. Decide, |
| then, is protecting you, the consumer? Only you | | | | in advance, what results you can and cannot live |
| can protect yourself from the pitfalls of hiring the | | | | with. Do your own homework. Research the |
| wrong real estate agent. | | | | home sales and buying process. Know key terms. |
| Here are some of the important things to | | | | Unscrupulous people, regardless of the industry, |
| consider when choosing a real estate agent: | | | | most fear an informed consumer. Choose NOT to |
| Price - the single most critical factor in selling your | | | | be a victim of fraud and questionable business |
| home, especially now that home values are | | | | practices. |
| stagnating or receding. The market has definitely | | | | Seek Legal Assistance - above all, remember that |
| turned in favor of buyers. Therefore, you MUST | | | | YOU are in charge of your own real estate |
| know the comparable sales of homes in your | | | | transaction. Real estate agents work for YOU. |
| neighborhood or town and price your home | | | | Ask questions. Demand answers. If something |
| appropriately. A good real estate agent will | | | | sounds fishy or too good to be true, then it |
| provide you with a Comparative Market Analysis | | | | probably is. When in doubt, seek the advice and |
| detailing all the sales of like homes in your area | | | | representation of a qualified attorney. Don't allow |
| and will have a definitive opinion about the listing | | | | things to escalate to the point of disaster. I base |
| price for your home. In fact, the best agents will | | | | this advice on personal experience. Before I |
| likely refuse to take your listing if you, the seller, | | | | became licensed, my husband and I had a terrible |
| have unreasonable expectations for listing price. | | | | experience with an agent who claimed to have |
| Be wary of any agent who promises you that | | | | more than 15 years experience. We thought we |
| you can get more for your home than the | | | | were in good hands. Nothing could have been |
| comparable sales will allow. One of the favored | | | | further from the truth. Thankfully, we were sharp |
| bait-and-switch methods of unscrupulous agents is | | | | enough to realize that our transaction was in |
| to convince you that your property is so much | | | | serious jeopardy and sought legal assistance. |
| better than the comparable properties (this is a | | | | Buying or selling a home is a complicated and |
| play on human nature and our natural yearning for | | | | difficult endeavor under the best of |
| compliments). They will often disparage more | | | | circumstances. Consequently, you need a genuine |
| honest agents who may have quoted you a fair | | | | professional, a truly dedicated and experienced |
| and reasonable listing price just to get you to list | | | | advocate, to guide you through the process. Be |
| with them. If questioned, these agents will assure | | | | diligent in your efforts to find the right agent for |
| you that if all else fails, you can simply reduce | | | | you. Don't yield to sales pressure. Take your time. |
| your price. I have seen questionable agencies | | | | Your efforts will pay off in the long run. |
| parade dozens of its agents through a home to | | | | |