Booking an airline flight is an exercise in the trade offs in value. For those who are value conscious they can fly stand by and get the least certainty of achieving their goal of arriving at their destination on time. In the middle of the value spectrum is coach where your seat is (relatively) assured, but service is minimum, and your experience in flight is not a high priority. At the top pf the cost spectrum is first class where you get top priority in seating, comfort, and in flight experience. The customer booking the flight makes their choice and gets the experience they pay for.
Now imagine all the seats are the same price. What class would you fly? This is the world of real estate. If you are looking to hire a full service agent are you going to be flying stand by or first class? There's allot on the line too. Your house is a big part of your financial and personal life so messing up here can have significant consequences. Full service agents all charge commission rates that fall within a narrow negotiated range. So the questions is "why do so many people fly coach when first class is the same price?".
It appears that many homeowners give less consideration to whom they choose to represent them in the largest financial transaction of their lives than they do which isle their seat is in for their next vacation flight. It is common to hear a homeowner refer to a neighbor who has a license, or a friends kid who just got into the business and their desire to help them out. In the current market where real estate agents are really struggling to just survive the stakes are even higher. The old saying is "desperate times call for desperate measures". Why would a normally thoughtful, intelligent homeowner higher an agent who's carear has one foot in the grave? With mounting personal and financial pressures on the agent their objectivity may become compromised, so why take the chance?
Here's why. They are compassionate and caring souls who want to help someone they know and they are unaware of the real challenges and jeopardy that a mishandled real estate transaction can bring. After years of increasing prices and easy transactions the reality of this market has yet to sink in. Sellers cannot afford to lose a buyer, or their equity, to simple but costly mistakes that inexperience can cause. As our economy moves into recovery and the real estate market gets back onto firmer footing in the coming years we may get back to the point where selling a home is as simple as booking an airline flight like in years past. For the next few years homeowners will need to be a bit more discerning in their selection of agents in order to protect themselves and their homes equity in order to have the favorable experiences that they desire.
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