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The Times They Are a Changin......

By
Real Estate Broker/Owner

Yesterday I read a post from about whether agents can sell anywhere in their state and whether they should or not by Charles McDonald. That post lead me to thinking a bit about this topic. SO...

Historically agents stayed in their areas.  All agents worked as sub-agents of the seller whether or not you had the buyer and if a buyer wanted to look in another area the agents would refer them and receive a 25-30% referral fee.  Seniors agents had referral networks throughout Westchester County and knew that if they referred out they would receive the referrals coming in.  An income stream.  An income stream to be protected at all costs. New agents were "helped" and referred their buyers to agents who would then refer back to the senior agents. The income stream was protected.  The newer agents really didn't understand what the game was.

In the past few years the internet has emerged as the main resource of information for buyers.  Previewing properties now is not controlled by the real estate agent.  The buyer's find the properties they want to see themselves.  Buyer brokerage has also emerged as a shift from the status quo.  Buyers can now hire a buyer's broker to represent them.  Sub-agency while not entirely a thing of the past is more and more vanishing.

More and more I see agents from other areas travelling all over Westchester County. To be an expert in an area means what?  Learning about the transporation, schools, train parking, zoning, taxes, etc.  All of which is on the internet, a visit to the Village Hall or Town is a way to learn quite a bit about any property.  As buyer's agents verification of all information is necessary whether you are in a familar area or not....It is necessary to do your homework.  Since I have moved to a new area I have had to learn everything about a lot of communities and I know how, what and where to learn.

The Real Estate community is very territorial.  Agents in the business for many years are trying very hard to hold on to how things have always been.  They don't  want anyone infringing on their turf and are often not very nice.  One agent even insinuated to me that because I didn't know who owned a particular beauty parlor before the current owner that I would not be able to sell in that area. Is that something that a buyer moving into a community would want to know?  Don't think so.

So, which is worse.  An experienced agent learning a new area, studying and verifying informayion and knowing which questions to ask and who to ask or a new and inexperienced agent staying in their area but not having any experience about how to negotiate a contract or how to analyize and troubleshoot engineering issues.

You can't stop progress.  Agents throughout Westchester County are working all over the county.  They are working as buyer's agents and going with their buyers and selling in various communities, more and more.  The times they are a changin.......

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New Orleans Property Lady, LLC

Broker/Owner and REALTOR (r) 

New Orleans, LA 70125

504-908-2268 (C)            

 Licensed in the State of Louisiana, USA

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Copyright 2012, Miriam Bernstein, All Rights Reserved

R. B. "Bob" Mitchell - Loan Officer Raleigh/Durham
Bank of England (NMLS#418481) - Raleigh, NC
Bob Mitchell (NMLS#1046286)

I'm with you on this one.....I recently got a call from a friend who wanted to look at lake houses just outside of my local MLS and while some of the agents were very nice and appreciative that I had a potential buyer for their listing, some were downright rude.

While there is something to be said for knowing the area in detail, I don't see anything at all that I couldn't look up or find out that I would need to know in order to sell a home 30 miles from my house.

I'm sure that you'll have agents disagreeing , but I'm with you on this one!

 

Bob Mitchell

ValueList Real Estate Services, Inc. 

Dec 23, 2007 04:01 AM
Matt Kofsky
Transaction Realty 500 Reno, Nv. - Reno, NV

30 miles is ok, but what about 60 miles or 100 miles.  You might not even know what questions to ask.  An area near me has something in the soil that makes the foundations slowly crumble.  Would you know to ask if the ground had been treated with the chemical to prevent this from happening?  Another area about 60 miles away has the very high occurance of Leukemia, about twice the national average.  They think there is something in the water but are not sure.  Would you know to ask about the homes water filtration system?  Another area about 2 hours away has a gorgeous lake.  The water level has been dropping for the past 70 years. 

The best part about this is that you may think you are doing a good job for your client and yes this is the wave of the future.  McDonalds must make the best hamburgers because they sell the most.

Dec 23, 2007 04:25 AM
Miriam Bernstei
Rochester, NY

Bob - that's right.  it is a lot more work and time to study an area but doable.

Matt - I stay within my MLS for the most part. Some research both on the internet and in the Town and Villages plus an Engineering would reveal what is necessary.  Would a brand new agent from your office necessarily know about the soil? 

Water filtration systems are something that Engineers check down here - do they check up there?  A water level in a lake dropping?  Due diligence and research into an area would certainly expose what is necessary; in your office do you have listings and represent buyers - if so how would you handle having a listing let's say on that beautiful lake and having a buyer come and place a bid?

Matt, I am doing a good job for my buyer's - they request that I come with them because they know that I am not concerned where they buy and that I will do exhaustive investigating into different area.  Your reference to McDonald's is exactly what I am talking about, the nasty reponse of agents trying to keep the status quo.  The assumption that I can't be doing a good job.  Honestly.

An agent who works an area and knows that area doesn't mean that the agent is qualified to sell real estate.  Keep the insults to yourself.

Dec 23, 2007 05:01 AM
Matt Kofsky
Transaction Realty 500 Reno, Nv. - Reno, NV
Miriam, I apologize if I insulted you.  It was not intended.  I glad that you can get everything you need to know on the internet.  I can any home's price on Zillow :)  Your point about an inexperience agent is exactly the same point I am making.  You are an inexperience agent when you are too far away from your territory. 
Dec 23, 2007 05:48 AM
Miriam Bernstei
Rochester, NY
Matt - I didn't say that I could get everything on the internet - you are so intent on making your point you didn't read what I said.  Pricing is just not that complicated - Zillow simply doesn't work. You have obviously never had to move to a new area.  I am never an inexperienced agent.  Please disagree, don't insult or make it personal.
Dec 23, 2007 06:04 AM
Matt Kofsky
Transaction Realty 500 Reno, Nv. - Reno, NV

Since you are staying within your mls, what you are saying might not be too bad.  Our mls is over 200 miles.  You said pricing is just not that complicated.  Many times you are right, many times you are wrong.  There is an area near me called Sun Valley.  Most of the homes are one 1 acre lots and are horse property.  About half the properties are on city water and sewer, the other half are on their own well and septic.  Which is more valuable and by how much?  What is the value of a home on a 2 acre lot?  How much is the fencing for horses worth?  What is the value of a barn?  What is the value of a 10 acre lot?  If the lot is not level how much does it change the value of the property?  Is the west side of the street or the east side of the street more valuable?  The area is growing.  They are talking about maybe changing the boundaries for the schools.  How does that affect the value of the homes?  What is the difference in value between a dirt driveway, a gravel driveway and a paved driveway.  Some of the homes are off of dirt roads, how does that affect the value?  This area is about 15 miles from where I live.  I am not competent to sell in that area.  I refer all of my leads in that area to a friend who specializes in that area.   I hope that you also have the sense to realize when you are in over your head.

To answer your question, I moved here a little over 3 years ago.  I knew nothing then and know a little bit more now.   Hopefully, I will know more in the future.  I compare what you are doing to a FSBO.  The FSBO might get it right.  He might not.  But there is one big difference.  The FSBO is gambling with his own money.  You are gambling that you get it right with your clients money.  How would you like to find out a year or two later that because you didn't ask the right questions, you cost your client $10,000?

Dec 23, 2007 08:08 AM
James Wong Vancouver Richmond
Vancouver, BC
Chinese Realtor, Vancouver > Richmond
Real estate is local and it is a service business. Straying too far is time consuming and contra-productive. Why learn to understand the market far away instead of learning to be better at getting listings. Good Realtors know their turfs and compete for listings. Top realtors have more listings and they work on getting their listings sold.  
Dec 23, 2007 08:37 AM
Miriam Bernstei
Rochester, NY
Matt, again your tone is insulting "hope I have the sense to realize when I am over my head" sticking to the subject without insulting me would be a better approach.  The way it goes is that I spend weeks previewing properties at brokers open houses, study the mls solds, etc and again the same way I had to learn when I started real estate by studying, asking questions, previewing properties, reviewing solds, going to the Towns, Villages, speaking to the Assessors I can learn any area and would not be over my head anywhere.  You had to learn the area you are in now, didn't you.  There was a learning curve, but you learned.  Were you in over your head?  Did you give all the customers to friends until you knew everything I'll bet you didn't.  I am not gambling with anyones money, again lets not be insulting.  I have been a broker for 15 years.  How can you then work now saying that you only know a little bit more now.  A FSBO is not a trained broker, doesn't have the experience with negotiations, with mortgages, with Engineering, with showing his house without personal feelings getting in the way, a FSBO is a non professional who has no experience with a real estate transaction and if you don't see the difference it Sounds to me like you should wait until you know more in the future before you risk hurting your clients.
Dec 23, 2007 08:48 AM