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Real Estate Educating Clients to Your Needs...What Do You Want Them to Know?

By Kathy McGraw

Real Estate Broker/Owner with CELLing Realty CalBRE #01445865

October 12, 2010 04:48 PM

I sell Real Estate...and I am supposed to care about the clients needs, but what about "my needs", our needs. What do Real Estate Agents and Realtors really expect from the other people in a transaction of buying and or selling properties.

Real Estate Agents write tons of stuff. We have blogs to educate. Blogs to entertain. Blogs that are written to network so we have a good referral base, but really what have all these blogs taught everyone? Why are we still trying to educate people about some of the basics of Real Estate transactions?

Educating the Real Estate Consumer

I am working with someone to write a promotional piece for the public on what an Agent does or doesn't do, and a few other things that we want them to know. However when the eDesigner that I am coordinating with sent me this I thought, oh that is too simple.

"I've included some that are specific to the protocol of hiring an agent, and some that are more general, in case you want to include any of that information. Let me know if this is the type of thing you're thinking of, or if you can think of other resources that might be helpful."

Rules for Working with Real Estate Agents:

What Is A Realtor
Debunking Real Estate Agent Myths
Your Duties to Your Agent
How to Interview A Real Estate Agent
Why Hire a real Estate Agent

What she's envisioning at this point is something that covers the following points:

Your agent works on commission, not salary. If you cut them out of your home purchase they get nothing.
If you already have an agent representing you, you shouldn't ask another agent to show you a home. Agents respect the client relationship, and an ethical agent will not undercut an agreement made between you and a colleague. Also often times it is against the Code of Ethics a REALTOR adheres to.
Real estate agents are busy professionals. They are not at your beck and call any hour of the day, ready to drop everything to show you a home right this minute. You are not your agent's only client (this is a good thing!), and like you, real estate agents need to eat, sleep, and spend time with their families.
If your agent is not able to show you a home right this minute, it is not acceptable to call another agent and ask them to show you the home (see #2)

Do we as Real Estate Professionals educate people enough? What would you want them to know?

So, what do you think? Do we need to educate each other or the Public on what our responsibilities, work style and expectations are in order to facilitate a smooth transaction?

If we could only have a 3 minute presentation what would you want a prospective client to know?

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Ron T. Weems Jr.

Weems Property Group | KW North Sound - Bothell, WA

Managing the details one home at a time.

I agree, they need to be educated. We don't work for free. Ask one question? Would you work for free? We know they wouldn't work for free, so why should we?

Oct 12, 2010 05:29 PM

Kathy McGraw

CELLing Realty - White Water, CA

Riverside County CA Real Estate

Marty- Thanks for the feature :) I love cookies .....

Chris- the Value Proposition....so you think it is the client that should be educated..and remember I only want to do it in 3 minutes or less. So what would the most important value be?

Curt- We all hope that we provide them a valuable service...now we just have to get them to understand what that really means :)

Marchel- Sometimes we think we have covered all the bases just to find out we missed something. It is that something that I am trying to find. Last week I wrote about a referral gone wrong, and when a home stager mentioned she didn't know not to call another Agent I realized we have indeed missed something with all the writing we do :)

Kathy- Oh I so agree with your stats comment...often they use that info incorrectly anyway.

Patrick- good points :)

Matt- I love win-wins ...now do you have any particular thing to teach them for this :)

Stan- How can we use what you said to teach something other than just the same ole rhetoric?

Oct 12, 2010 05:45 PM

Joan Whitebook

BHG The Masiello Group - Nashua, NH

Consumer Focused Real Estate Services

It is not ok for buyers to ask me to cut my commission because you want to purchase a home that you can't afford... or one that stretches your budget. Would you cut your paycheck for someone so they could get something you or company offers?

Oct 12, 2010 05:50 PM

Kathy McGraw

CELLing Realty - White Water, CA

Riverside County CA Real Estate

SCA- OK...so that point should stay in then :)

Cece- good point...maybe all of us have some sort of responsibility to add something about this on our Blogs....let them know what we expect and can offer? When people find infor online often I have found they don;t think the rules are the same....and in many ways they aren't. So, who has to adapt....us or them? :)

Fred- so you would use your 3 minutes to teach them what you can do for them?

Alex- Exactly! I used to include a blurb in my listing presentations on commission and how I got paid...amazing how many people didn't understand. And you are so right.....this is the only job I ever had that I can work for months and never get paid....for all the reasons you stated :)

Ron- OK I hear you...now how to put that nicely ....because it is true often times we do work for free even when we don't plan to. So how can we mitigate this?

Joan- I think this is one of the most important things to get across...yes commissions are negotiable, but too often we are expected to cut our pay as you said yet the very people asking us would never negotiate a lower pay for themselves, in their fields. Understanding the pay structure is important in teaching this I think....

Oct 12, 2010 05:54 PM

Christine Donovan

Donovan Blatt Realty - Costa Mesa, CA

Broker/Attorney 714-319-9751 DRE01267479 - Costa M

I think we do need to educate them much more and that it would be helpful to both the professionals and the clients if we did.

Oct 12, 2010 06:35 PM

Russell Lewis

Realty Austin, Austin Texas Real Estate - Austin, TX

Broker,CLHMS,GRI

Like you I appreciate Marti and aslo love cookies! I try to make my blog somewhat educational but also give some insight (in small doses) about me. my personality and the way Iwork with clients. I also post educational tidbits now and then but keep that to a minimum though I also agree with Christine that it would be helpful to everyone if we did more!! BTW, I like your new profile picture!

Oct 12, 2010 07:57 PM

Petra Norris

Lakeland Real Estate Group, Inc. - Lakeland, FL

Realtor, Lakeland FL Homes for Sale

Kathy - Absolutely. Laying out the rules and explaining the rules will translate into a much smoother transaction and also clear up any confusion.

Oct 13, 2010 12:24 AM

Andrea Swiedler

Berkshire Hathaway HomeServices New England Properties - New Milford, CT

Realtor, Southern Litchfield County CT

Hi Kathy, great post! Different ones for buyers and sellers? Why can't we tell them we work on commissions only? But I wonder if they will listen anyway.

How about approaching it, with a buyer, in this light... "How do I (the agent) get paid"? And a response like... "You may be surprised to know that I work on commissions only. 9 times out of 10 my fee is paid by the seller, however I still work for you".

Change it for the seller.

Oct 13, 2010 12:41 AM

Ty Lacroix

Envelope Real Estate Brokerage Inc - London, ON

Kathy, some people learn in different ways, so how to educate a buyer could be visual, text or hands on. Just because they nod their head as if to say they understand is not necessary their understanding.

Oct 13, 2010 01:56 AM

Charita Cadenhead

eXp Realty - Birmingham, AL

Serving Jefferson and Shelby Counties (Alabama)

Kathy I think we do educate them and many of us educate them well. Here is the problem:

People want what they want when they want it and usually it is NOW!
People care about their time NOT yours
Because (venture to say MOST) we deal with buyers, many of which have never bought a home, we are constant educating. We educate as we serve and we are serving new people all of the time
We eduate one at a time

The big question is if you want to reach a broader audience, you have to collective educate and how are you doing that?

Are there other agents in your area that are collectively circulating this valuable information en masse?

Oct 13, 2010 02:04 AM

Dena Stevens

Rocky Mountain Realty - Canon City, CO

Putting The Real Into Realtor Since 2004

Cathy,

I think you hit the nail on the head here.

1) If a buyers 'give a damn' is broken or out of adjustment the agent is 'outta luck'

2) I'd like permission to repost part of the is with credit to you of course.

Oct 13, 2010 02:43 AM

Pat & Wayne Harriman

Harriman Real Estate, LLC (203) 672-4499 - Wallingford, CT

Broker/Owners, Wallingford CT Real Estate

Any chance of working "Real estate is LOCAL" into your piece? As Papa Jon Zolsky points out on another featured post, it's a phrase that's bandied about so often, but so little understood.

Oct 13, 2010 03:01 AM

Michael Setunsky

Woodbridge, VA

Your Commercial Real Estate Link to Northern VA

Kathy, you make a very good point. Education is key from the initial contact right up through to the closing. We also need to treat real estate as a business and make some ground rules. Good Post!

Oct 13, 2010 03:52 AM

Manuel Monserrate

Raleigh, NC

These are all interesting points to share with a potential client, but it would be good if some of these made it into the realm of public information (well known facts about real estate). It's a shame that there are so many misconceptions out there, but that's the reality.

Oct 13, 2010 04:51 AM

Marco A. Greco

CRONE REALTY LTD., Brokerage - Hamilton, ON

Good points. We usually think educating the public is about the basics of the transaction, but I never thought about educating them on the process of working together, and what the ground rules are. Some of it will be covered by a Buyer's Representation Agreement, but I like the point about not doing things at the drop of a hat.

Oct 13, 2010 04:59 AM

Lesley Wagstaff

Re/Max Results Realty in Vancouver, BC - Coquitlam, BC

For Real Estate and Mortgages

Excellent information. I would be nice if the clients would listen and follow through with these things.

Oct 13, 2010 05:07 AM

Lorraine or Loretta Kratz

Crescent Moon Realty, Inc. & Land N Sea Auctions. - San Marcos, CA

Certified Negotiation Consultants

I am surprised by what the public expects/demands from a real estate agent, It ranges from performing the impossible, to the mundane. It is challenging to wear so many hats, from psychologist to financial adviser. I know that the public would not work for nothing as so often a real estate agent does or wait six to 12 months to get paid on a transaction.

Oct 13, 2010 07:32 AM

Marcia Kramarz

Re/Max Executive Realty - Medway, MA

CDPE,LMC,CBR

Please - keep educating buyers and sellers - this is SO important - A critical step in working with buyers and sellers to know how you work -

Oct 13, 2010 02:00 PM

David Robinson

Lloyd Cullen Real Estate - Murrieta, CA

Call Now (877) 828-0710

I can't agree more with this post. Our clients need to understand exactly what we do and how we go through obstacles in this market. Open line of communication and showing the facts is definitley key.

I really enjoy this post.

Oct 15, 2010 06:56 AM

Todd Clark - Retired

eXp Realty LLC - Tigard, OR

Principle Broker Oregon

I think this is why it is so important to meet a client at the office prior to showing that first home, you get to understand each others expectations. That is the time to see if you can work together, not in the middle of a vacant home, way too many distractions.