Home : Blogs : Kathleen "Kate" Elim LAKE ANNA, VA Real Estate : Lake Anna VA Real Estate Specialist - Kathleen Elim

Should REALTORS® Actually Know the Areas They Sell?

One of the tenets of being a professional REALTOR® is knowing your market.

How can someone possibly help their client buy a property in an area that is unknown to them 75-100 miles away in a very different environment?

I often ask myself this question when I receive calls from agents some distance away asking for information on property here at Lake Anna. They have never been here and yet plan to work with clients interested in buying at the lake.

One day I received a request from an assistant to a "high producing" Northern Virginia agent. I was asked Lake Anna - Photo by Kate Elim to do a CMA for Lake Anna. Lake Anna is 17 miles long with over 250 miles of shoreline and pproximately 120 subdivisions. We sell waterfront homes, water view homes, access homes, waterfront lots, water view lots, and water access lots with or without assigned boat slips.

Would you like to do such a Comparative Market Analysis? Would it tell you very much? Would you be able to help your clients with this information?

I suggested to the assistant that I would be very happy to accept a referral. That seemed like the logical step to me. The assistant said the agent preferred to work with her own client.

Who's best interest was paramount on that agent's mind?

When I first became an agent I worked in Northern Virginia. I had been living there for several years and there was still quite a learning curve getting to know the area. It is huge. My office was located in what is known as inside the beltway, fairly close to D.C. It was the area where many people chose to start their search for a home. At that time most of the jobs where in D.C. or close in. Little by little we would venture further out when they realized they were able to buy much more home for the money.

After moving to Lake Anna I experienced another learning curve. This time I had to learn about the lake. Lake Anna has it's own story. Then I had to learn about surveys, septic systems (alternative and conventional), about wells (drilled and bored), the building permit process, and other things that were more unique to Lake Anna. Just getting to know where the nearest towns and shopping areas were as well as medical resources and schools took some time.

There definitely is a case to be made for referrals and they do not necessarily have to be just across state lines or outside a MLS.

Do you provide the best service for your clients even when that may mean not working with them?

Please think about that the next time someone tells you they are interested in an area you do not know.

__________________________________________________________________________________________________

Welcome to Lake Anna - Photo by Kate Elim If you or someone you know is thinking of buying or selling property at or near Lake Anna, Virginia please contact Kathleen "Kate" Elim, REALTOR®.

Kate lives at Lake Anna, knows Lake Anna, loves Lake Anna, and specializes in Lake Anna area real estate.

Contact Kate at 540-226-1964 or lakeanna.kate@gmail.com. Be sure to check Kate's Web site http://lakeannacountry.com/.

Posted by Kathleen "Kate" Elim LAKE ANNA, VA Real Estate on 01/06/2009 11:53 PM

Comments (49)

Selling What You Know in the Sales Strategies / Tactics Channel

realtor, lake anna, virginia

Originally posted at: Lake Anna Country: Should REALTORS® Actually Know the Areas They Sell?

This post has been included in Virginia Information Spotsylvania County, VA Information Spotsylvania, VA Information
Post is included in group: VIRGINIA
Post is included in group: The Lounge at Active Rain
Post is included in group: RE/MAX Active Rain Bloggers
Post is included in group: Realtors®
Post is included in group: Northern Virginia Real Estate

49 Comments on Should REALTORS® Actually Know the Areas They Sell?

JAN

This is a very good point. When we were thinking of buying property in Charlottesville, we contacted another agent...I could have represented myself, but I think it is important to have local perspective, to know the local 'chatter' and be familiar with the history of the area.

What an alien concept... actually having thorough knowledge of the market you are serving! We couldn't agree more with your thinking 100 percent. It takes more than the ability to fill out the contract forms to truly help your client make the best purchase decision. Better to refer to the best possible agent in the area rather than muck it up from a 100 miles away.

AJ Heidmann, ABR, CRS, e-PRO

Coldwell Banker Residential Brokerage

310 King Street, Alexandria, VA 22314

Licensed in Virginia

I also work on a Lake... in Georgia and we have this same problem. Atlanta is about an hour and half away and constantly agents who sold someone a primary home are also trying to sell their clients a home on MY lake. I think it's a totally bad idea. Once in a while it is an agent who happens to also own a vacation home here and that makes it a little better, they may know about their area, but they don't know the lake like I do. We have 417 miles of shoreline and over 15,000 acres. It's difficult for me to know that much well. I have to work hard to stay on top of new developments and such.

Your point is well stated here and I truly hope consumers can see the value of using an agent who KNOWS the area instead of bringing an agent into an area and ending up with not what they really wanted.

Excellent, excellent point.

I have gotten some calles from MA agents about NH -- they don't want to give the referral, but they want me to do all the work and keep the client! I have had a couple of clients I have worked with a long time venture to towns I work in less often -- I am upfront and give them a choice. If they insist they want to have me represent them, then I call agents I know in the area and get up to speed. I go to the town hall and check the town website to educate myself. The most important thing is full disclosure to the client.

This is a huge pet peeve of mine...not only are there agents working 100 miles out of their area, but I also had an incident with an FHA appraiser that was from 2 states over (the deal fell through based on the appraisal, and the appraisal sticks with the home for any future FHA buyers for the next year!! I called FHA headquarters and spoke with the head of the appraisal dept. to ask if there was any type of regulation and he said the appraisers regulate themselves...if they say they are familiar with an area then they can proceed with the appraisal!! Although in this case we were representing the Buyers I couldn't help but think of the potential harm to the Sellers!

As far as out of area agents...as the listing agent they want you to send them the CMA's, open the house for their clients because they inconviently "can't make it down on this particular day" (or any other day), open the house again for the inspection (again which they can't make) and then the appraiser and the list goes on!

I try to keep of the mindset that all parties are working in good faith and to the best of their abilities, but sometimes....

Thanks for the post, obviously you struck a nerve!:)

Excellent, Kate~! About a year ago, I moved to a new market 150 miles from my former area. I haven't felt truly comfortable working in this environment until NOW! You have conveyed a VERY important message. Thank you! ~Pat

This is why i refer my "Lake Anna" clients to you!

Happy New Year!

your friend for Charlottesville Real Estate!

Excellent post!

I have only helped one buyer out of my normal area, and that is because it was in the city we lived before we moved here, one where our family lives and where we stay aware of the market because we intend to be able to help my ILs with selling advice sometime in the next few years. There is no way I would consider helping someone anywhere else. If I don't know the market, I can't give my buyers the assistance they need to negotiate.

Amen !!! I refer out when I don't know an area, or want to go that far. I hate it when agents come in here and try to sell in a market they no absolutely nothing about.

It's even worse with BPO's for foreclosure's, "where did they come up with that price?"

I whole heartily agree. When I first got into real estate I went all over the state with clients. It was stressful, tough and very time consuming. But most of all I realized there was so much about those areas that I knew so little about and that was not good for my clients. No more do I travel out of my area, instead I have built a referral network to give my clients the best possible service. Happy clients = happy me.

Kate, I was just speaking to someone yesterday about this....the agent she was working with was not from Long Island where she was moving and knew next to nothing about the neighborhoods. I suggested she get a buyers agent in the particular areas of Long Island to work with....and think she will.

Hi Kate,
I learned this lessons early on in my career. Onslow County is a very large county covering. I had a client from out of state interested in an area of the county about 50 miles from me which I was not familiar with. It did not take me long to figure out that I was trying to sell an area that I knew nothing about and was like a fish out of water!

JAN

Hi Kate,

Everything you said is so true. I also am in a unique place..Edisto Beach & Island , SC. I am still involved in the learning curve after being a realtor two years and owning property for 13! Septic systems, wetland restrictions, high tide marks etc..

I will not attempt to show properties outside of Edisto and will happily refer outside to someone with the expertise of that area that I do not have. This is best for my client and that is what I'd expect someone to do for me! I hope others will do the same.

Thanks,

Cindy

Kate, I agree that agents MUST know their areas! I won't hesitate to refer clients to an agent in a specific area, if I'm not completely knowledgable about that area. That's the only thing that scares me about the CA statewide MLS.

Join my NEW group for professionals who work from their home office at http://activerain.com/groups/virtualoffice

Regina P. Brown

It definitely helps to know the area you are selling. I know the buyers appreciate it.

I have set my boundaries that I am comfortable with knowing, and keeping track of the market it. It basically extends through the county I live in...anything outside of that I refer...no questions, no second thoughts....

Absolutely bang on the money! It is imperative for an agent to know an area otherwise it can be at their own peril that they represent a buyer in an area that they have little knowledge of. Great post, thanks for sharing it. Take care and happy blogging!

Hi Kate, I certainly agree with you. I couldn't go to No. VA to sell or market homes. I would not be doing the client any justice. Sure I can drive anywhere in No. VA thanks to a GPS but I just don't know that area at all. Since I live in Locust Grove, I stick to the north east end of Orange, Spotsylvania, Fredericksburg and Stafford. You can be assured if I have someone for Lake Anna I will be calling you with the referral because I do not know the lake. Just because I know where it is does not make me knowledgeable about Lake Anna. Happy Wednesday to you!

Well I have to go against the grain.. I specialize in waterfront properties and have made my living for 10 years off a lake approximately 125 miles away. And yes, I do know it well. I have referred a few deals but mostly I work them myself.

Happy New Year Kate! I agree in most ways - however, I have learned that an excellent agent is hard to find, so if you have a fantastic agent who will get the information and be diligent for the buyer that is sometimes the better choice. Little do they know how great they would be doing by hiring YOU!!

Now as for listing a property 100 miles away...that is another subject. It's not fair to the seller unless you have someone right there ready to help out with the property.

I can understand buyers wanting to hold onto their agent. Maybe that agent will send referrals later?

Distance diminishes knowledge and reduces quality of service in most cases.

Kit Kat, I have a real problem with long distance agents. I feel every person is entitled to representation but unless they (the Realtor) does the work necessary including all the showings I don't feel comfortable with a total split. With that said...I must sound like a doo-doo head. Oh well.

Hugs, Deb

Working in a resort area myself I see it happen far to often. However if the sell one of my listngs that is a good thing.

Anything that is about 15 miles away from me, I try to refer out. There's only so much territory that one agent can know well.

I prefer to stay VERY local! I have referred to the other side of the county - I just don't know it well enough to do justice to a client!

I'm licensed in Maryland and Virginia.

I could sell anywhere in those states. Do I? Of course not, I haven't lost my mind.

Sell what you know and refer, refer, refer the rest. Referral business is good business.

Fortunately, I've been around long enough and have enough curiosity to learn the market in many geographical areas of MD and Northern Virginia.

Lake Anna isn't that far away from me. I know Lake Anna. I've fished there many times. However, the listings are not all in my MLS and I wouldn't be doing a competent job for a buyer if I decided to go there.

Shucks, I'd just refer to Kate.

Kate, you make some very good and valid points. For some reason, it always seems that it's the long-distance listing agents that never call you back and the long distance buyer's agents who always have some rather silly questions about the area. Trust me, anybody wanting a home in Lake Anna would not be represented by me -- I'll be giving you a ring.

Kate, your story is spot on! I also live in a lake community and it is unique and has its own set of circumstances that make the values higher than most areas surrounding it. Agents don't understand the prices and scowl at us when we price the lake homes as compared with an off the lake home in the same area. The most important issue is that there is a limited quantity of product which raises the price!

I can't imagine being asked to do a CMA for an out of area agent who obviously has no business working where she is unfamiliar. Jeez. Sell what you know!!

Clients first. If you cannot give them 100% you have no business working with them. A referral fee is better than having your client say negative things about you because you did not know the area. I am licensed in two states because of where I live. I could be licensed in a third but have not done so because I know nothing of the area.

Hi Kathleen, Great post! We have agents here that indicate that they represent our entire county. Now how can that possibly be? I saw an ad that indicated that an agent worked in 3 different counties - wow - now that's really ridiculous!

I think this all the time. It is so true that you can't know the area and represent the client well in other counties unless they are very close. We also have different well & septic rules and even Cert of Occupancy rules. So true.

Being in a small rural market of about 28,000 across the county and only 4000 in Viroqua, I see a lot of agent who, have buyer will travel, from larger urban areas with a client buyer. We're 35 miles from a city of 150,000 and 90 miles from a city of maybe 500,000 or more. Many agents from these urban cities will come out to sell in our area and not refer. It is a completely different market with rural property and farm issues that many do not know or understand. It is very different than residential issues. Now we have also started also working their market instead of referring, since it is slower and have the time too. What I see is, often they are very surprised, like what are you (small town country agent who does not know the big city) doing here.... but the street does go both ways.

real estate is real estate !! Right ?? Wrong, each market is too different for one agent to try to represent buyers and sellers across wide rangning geography

Great points and absolutely right. I have referred clients out to areas that I could drive to in 15 minutes, but I knew there were nuances that I could not readily handle. I always would want the expert in their area.

I am with you on this one. I refer clients who want to buy in San Diego County, just 30 minutes away because it is so different from Riverside County and I just have not taken the time to learn it so I don't want to misinform anyone.

Kate - I would hope that the answer to your question is a resounding YES... Yes. How else could we be efficient? And be the expert of our domain?

It's kinda like looking at your Eye Surgeon to see if you have issues with your nose? We wouldn't even think about that for one second.

Not Realtors(R) are made the same. Some work in all areas their cars can take them too, and there are some who just work in specific areas. I believe in knowing your market like the back of your hands.

Absolutely which is why I gave out your name this morning to an agent in our office looking for a Lake Anna agent!

I am so happy that you brought up this topic. It has been one of my biggest pet peeves since joining the real estate industry. I am the queen of referrals. Metro Atlanta is comprised of 9+ counties and growing, there is absolutely NO WAY to be able to be knowledgeable about the entire area. It IS best to specialize in one or two counties or maybe multiple cities. Whenever I ask an agent, "where do you work?", I always get, "I'll sell a house ANYWHERE!" I constantly ask them how they are able to give their clients the best service if they don't know an area. I think that it is extremely unprofessional for real estate agents to take their clients around to areas they have never been. I wish that some agents would raise the level of professionalism with which they operate. It reflects badly on the industry as a whole.

JAN

Kathleen, I agree with you! I wouldn't sell outside of my comfort area, but give a referral to a client for the area. Or I would give a higher referral fee to another agent for showing us around while I went with my clients if I had a relationship with them already. I wouldn't have done a CMA for another agent also, since those take up your time and you're not really getting anything for your help. I live in a resort community, and we get tons of agents from the flatlands that think they can sell cabins up here. They have no idea about our area, so how are they going to sell a cabin when they're used to selling tract homes? 180degree difference!

I would reduce that to 10 miles from my farm. Anything beyond that, in my opinion, is a disservice to my clients. Exceptions would be specific specialties such as lake front properties, senior projects, etc....

JAN

There are parts of Maui I don't want to work in too, and only because I don't know the territory, so would rather refer it out. Life is too short to try and do it all.

JAN

MORNING KATE! Can't agree more! I refer out just 12 miles on the other side of town -- there are many communties on the "other side of Tucson" that I wouldn't even begin to try and help clients with. Too many questions could come up that my answers would scream "she has no idea! -- Gabrielle

JAN

Kate, I can assure you I have no real estate knowledge of Lake Anna and if I had a referral for the area you would be my choice. It is my firm belief we should only serve the areas we know best. For example, we have lived in Lake Ridge for 26 years - I challenge anyone to know the Lake Ridge as well as my husband and I do, Karen

Holly...I am sure you received the help you needed to find the right place. Good decision.

AJ...That's right. No one benefits when we aren't able to do a proper job.

Tammy...Glad to hear you live on a lake also. You understand exactly what I mean.

Tony & Libby...Thanks.

Joan...Makes you wonder how those agents can expect free services like that from fellow agents. I'm sure you disclose to your clients the areas you know the best and which ones you don't.

Trish...I've had concerns about appraisers also. Not all of them understand waterfront/water access property and the values.

Pat...I'm glad to hear that you are feeling much more knowledgeable and comfortable with your new location.

Charles...Thanks, Friend.

Kate

Brenda...You're doing the smart thing.

Missy...It is a shame that it seems to be happening all over the place.

Martha...Smart choice. It doesn't feel good when you are trying to be an expert in an area where you are not.

Carole...Hope that person took your advice. They will be much better off with a local agent.

Cynthia...We all feel so much better when we really know what we are doing.

Cindy...Our reputation is the best thing we have going for us. Knowing what we are doing makes a difference.

Regina...So that's what is happening in California. You will probably find some agents drifting out of their area of expertise.

Steven...It is what we owe the buyers and ourselves.

Adam...Make the most of the area you know and understand and people will want to work with you.

Jason...You have the right idea.

Eunice...I will be sure to think of you in return.

Kate

Gayle...That may work for you and I sure do not know how many square miles there are in eastern Tennessee but few agents would believe they are experts in that much territory. It must take a considerable amount of time to cover that area.

Dawn...I think it may be easier to list out of your area simply because you can do a CMA that gives you a feel for that neighborhood, etc.

Deb...Should I worry that I understood what you said???

Scott...Yes, we do want our listings to sell, however, I would rather the "distance" agents would refer their clients to agents that know more about the area.

Tim...In Atlanta 15 miles probably does cover a lot of territory.

Leesa...It is best to work where we are the local experts whether it is part of a county, the whole county or a couple of them. We just need to be honest with ourselves and our clients.

Lenn...Thanks and I hope you catch some whoppers down here. Enjoy!

Kate

Brian...I appreciate your vote of confidence. Fortunately you seem to have plenty of business in Northern Virginia.

Caren...You are exactly right about the waterfront values. I lived in Kent, OH for years. Which lake are you referring to?

Kelly...That agent had no idea what they were asking for which convinced me they shouldn't even be thinking of doing any work in this area.

Michele...We have agents near state borders that work in more than one state. As long as they learn what they need to know it can work.

Sandy...I would think that is especially difficult in a heavily populated area such as Brevard County. Where I am, the counties are quite rural and not heavily populated. The lake I live on is on the border of two counties. The line runs down the middle of the lake.

Karen...You are so right. There are nuances that some people would not understand.

Mary...Farm property is another specialty with its own complexities. Not all of us know how to sell this type of property.

James...That's right, all real estate is not alike.

David...Smart move. Hopefully they all refer back to you.

Jane...That's doing the right thing for you and your clients.

Loreena...When you are you doing a much better job. How could you not feel better also.

Kate

Cindy...I really appreciate that.

Andrea...It does reflect badly on our profession when agents provide substandard service.

Amy...The main reason I did not do a CMA is because we sell waterfront land and homes, water access homes and land, water view homes and land, we're talking about a few CMAs not one. It simply made me realize the agent had no idea what she was asking for and I wasn't about to do a huge tutorial when she really should be referring her client. It didn't really matter to me if she referred to me or someone else. Referral was what was called for in that case.

Tim...I'm sure the distances vary from location to location. We only need to be mindful that we can not do it all. We are very fortunate to have a referral mechanism.

Georgina...The important thing is to do what you do well. Your reputation is what counts. Hopefully you receive referrals from those in other parts of Maui.

Gabrielle...One thing we do not need is to be out of our element. There's so much comfort when working in our area of expertise.

Karen...Anyone that has looked at your posts will understand that you know Lake Ridge. No doubt about it.

Kate

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?