Realtors need to stay away from locations they don't understand!

I work a fairly large footprint of the NY metropolitan area. While the diner gossip might not be a prerequisite for working an area, you had better know the place, because if your buyer is hit with a municipal transfer tax levied by a city you didn't know about, you could have a liability issue. 

Real estate is local - even with the web, we need to know what we are showing and selling.

Chris-  Rant maybe, maybe not, but you are right on the money.  This is also happening with HVCC with appraisers being sent up from Denver or even further to appraise homes in Evergreen.  A realtor told me recently that she heard an appraiser say that she had not been to Evergreen in 15 years!  Appraising a home in Evergreen is a lot different than in Denver.  This is a disservice to the client just as is a Realtor trying to help someone in an area they are not familiar with.  It's a shame if a Realtor would not only say those negative things about such a great place like Evergreen, but also the Realtor who tries to represent someone up here but doesn't know the area or the subtleties of mountain real estate.

Hi Chris: Hey, I once lived in Conifer. I met my first husband at the Golden Bear in Evergreen, we married and in 1974 I moved to Conifer. Spent a lot of time chopping firewood. Beautiful mountain community. How lucky you are to be selling real estate in Conifer and Evergreen!

When clients ask me to show them homes in areas of Sacramento that I don't know very well, I refer them to an area specialist. I believe that I have a fiduciary responsibility to my clients, and I can't meet those obligations if I don't know the area.

I don't understand why anyone would waste valuable time being negative on something. If you have a listing you don't believe in, or a buyer that is not worth working with, why bother? Let someone else deal with the home who understands it, and has the ability to promote it in the best interest of the client.

As a buyer's agent I have learned one VERY important thing:  I do not have to love the house, the location, the school district, or the commute time, BUT I do have to love all of the above FOR THE BUYER.  If it's what they want, then I am happy to have helped them find it.

As a REALTOR, you have to willing to admit when you have exceeded your level of experience, expertise, or personal comfort zone & MAKE A REFERRAL!

This will be a changing dynmatic in the coming years. As more folks get out of the business and less go in the coverage will expand. Will have to see how it plays out

You may want to delete comment #13.  Spam goes everywhere.  I agree with you and unless you have some knowledge of the area its best to refer out.  Lucky for me although I live in the suburbs of Chicago, I also own a condo downtown and spent over 15 years working in the downtown area. Along with many friends that live in the various neighborhoods I feel comfortable selling in most areas of Chicago.  I sell in most communities in the suburbs because again I have worked, lived in a few areas in the suburbs.  I also due my due diligence and find out all the local laws that will affect my buyer's transaction.  I currently have my FL license and eventually hope to move there but I refer clients that wnat to move to FL out to other agents that I have relationships with down there from vacationing in the area.

Chris I agree with you, this seems to feed into the scarcity theory.  The scarcity of if I lose a client another may never come along.  Every area has perks, if one doesn't understand the perks of an area, step aside and let the client choose for themselves. 

This does not just apply geographically, but with different types of property, as well.  Transactions involving luxury homes, commercial properties, investment, rural / farm / ranch, condo / multifamily all have their unique features and potential hazards.  If unfamiliar with these differing types of properties and transactions, one should refer the business to a specialist.  A referral fee income is better than a payout due to a fine or lawsuit.  

You are SO on target.   Rural living like we have has it owns unique set of features that are absolutely not understood by the city agents.  Yet because we are such a booming market they have to list / sell in this area.  Our median home price is much higher and that is an enticement.  I have no problem walking a buyers agent who is unfamiliar with the area through the things such as septic inspection but I shouldn't have to do that.

AND the locals go to this agents to list.  Yet when you are a seller you don't always understand that your listing agent needs to understand the community. 

When I had first gotten my license and was working out here my cousin used a city agent to purchase her home.  Was I shocked to find out they moved from the north to purchase out here.  So I searched MLS.  They had paid $15 / sf more than the average sales price.  (How it appraised I will never know).  Can I tell my cousin she got shafted?  No, that wouldn't be nice but her agent was clueless about the area.

I don't know why buyers allow agents (who do not normally work that area) to represent them in a transaction.

Chris, I couldn't have said it better myself. Some agents from town know our area, but most don't.  Those that don't  are really doing their buyers a huge disservice by not referring to a local agent.  Good luck to you and your new buyer client!

I just referred my close family member to another agent with out any referal fee!!! I think we all are professional and understand our limitation.

I'm the first to admit when I don;t know enough about an area to serve the client well. I'd rather be a hero and help them find an agent who knows their area of preference like the back of their own hand. A good referral can win you a lot of good will from both parties, the referred client and their new agent.

This happens all the time where I work. We have many 55+ subdivisions and subdivisions with restrictions. As resident agents we know where you can have a 20 pound dog, where you are restricted to cats only, where you can move in with two but not replace one if it dies, and where you have to be 55+ and at what level of strictness.

But over and over again we have Tampa agents come out here (all perfectly legal) without making themselves aware of the different rules that apply in the subdivisions. And they are often to lax about finding out about them. A call to the HOA president is too much trouble. They sell the home, then the new owners find out that they either have to move since they are too young, have to get rid of Fido or have Fluffy put to sleep. Talk about angry buyers. But it happens quite often.

You are right, sell where you want, but know the rules that apply in the areas where you sell. If you cannot be bothered to learn them, then stay away and do a referral to someone who does known all there is to know about an area.

I agree totally!   Sell you own neighborhood/area. It' s what you are knowledgeable on.  I

Patricia/Seacoast NH

Best practices, in my opinion, is to refer the client to a realtor who specializes in that particular area.

-Nelson

John Elwell (#49) you make a very good point regarding rules within subdivisions.  One problem we have here in California is the difference in property transfer tax.  One agent, who was used to doing business in an area where the xfer tax was $1.10 per $1,000 of the purchase price decided to represent a buyer in Oakland where the xfer tax is $16.10 per $1,000.  AND, the agent specified that the buyer would pay for it.  The "surprise" at closing was the line item of over $8,000 for xfer tax.  I keep my radius at 20 miles and sometimes even that is a stretch.

I think it's a sign of a new realtor, who doesn't "get" their role in a sales transaction, just yet, who would do this.    Building up a referral business is a strong part of our career descriptions.