Welcome to our blog series on the Top Ten Realtor Myths. On Monday we busted myth six, that all Realtors charge about the same commission. That means we're on to myth number five.
Myth: Realtors are generalists, and can sell anywhere.
Fact: Realtors can sell anywhere in the state they are licensed, but are rarely effective outside their area of specialty.
This is one of the most common Realtor myths we encounter. We constantly hear people say they'll sell their home with a friend who is a Realtor. Or, they'll call a friend and ask for a referral. The assumption is, as long as that agent is a Realtor, they can sell the home regardless of location. Although that's technically true, the reality is much different.
We'll start with the licensing of agents in Florida. To become a real estate agent, you must take a class on real estate law and pass the state exam. Once you pass the exam, you are licensed to sell throughout the state.
To become a Realtor, you must join the National Association of Realtors, the Florida Association of Realtors, and a local Realtor association (in our case, the Orlando Regional Realtor Association). By joining the local association, you are granted access to the Multiple Listing Service (MLS) and given an electronic key used to enter lockboxes. Here's where the first limitation on a Realtor's ability to sell anywhere comes into play.
Each local Realtor association can make its own rules (to a certain degree), have its own MLS, and have its own way of using electronic lockboxes. Each local association also charges its own fees. So, just because we are Realtors, we don't necessarily have access to the MLS in Miami. We'd have to join that board, pay the fees, and adhere to their MLS rules. As a matter of practicality, the vast majority of Realtors stick to their own local board.
Fortunately for us, the Orlando Regional Realtor Association has an agreement with neighboring boards that allows us to use our key to enter properties listed by members of their board. Also, the Mid-Florida Regional MLS is a massive MLS that covers a sizeable portion of Central Florida. That means we can sell anywhere in Central Florida, right?
Once again, technically the answer is yes, but practically the answer is no. For a Realtor to be truly effective at his job, he must know the area in which he sells. And, by area, we mean a very specific area of town. Not the entire city or county.
We simply cannot emphasize enough how important it is to find a Realtor who specializes in your area. He or she will know which neighborhoods are in decline, which have excellent investment opportunities, which have active Homeowners' Associations, and so on. This is knowledge that can only be gained by living in the area or selling multiple properties in the area.
The bottom line to this myth is simply that Realtors can sell anywhere, but rarely will they be truly effective outside their area of specialty. So, when you interview a Realtor to represent you, ask specific questions to test his knowledge of the area. Ask when he last sold a property in the area. If he cannot answer to your satisfaction, call another Realtor.
*Another quick disclaimer (big surprise, right?). Depending on the size of your city, county, or community, there might be Realtors who can cover the whole area effectively. However, in the greater Orlando area, it's extremely unlikely.
Within the next couple of days, the Orlando Regional Realtor Association should be releasing March's sales numbers. Therefore, we will be holding off on myth number four until we have completed our monthly Market Update. Please check back soon!
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Hi Drew,
Great post. Thanks for sharing and have a great week. Michael A. Caruso