Are Realtors Overpaid Locksmiths, Advisors or Sales Agents?

Are Realtors Overpaid Locksmiths, Advisors or Sales Agents?

At times I'm amazed at the perceptions Realtors face.  The general public and the public in general often feel that agents are overpaid, earn too much commission, or that they may be self serving.  Certainly we must admit that there are vast differences among agents, and that sales agents are different from trusted real estate advisors, part time agents versus full time realtors, model home hosts and GRI, CRS, ABR, E-Pro, professionals.  Just as there are different levels of service and expertise in every profession there is a big difference among real estate agents!  

Realtors ascribe to a higher code of ethics and increased standards of service than real estate agents who are not members of a board of realty and are not "Realtors."  The National Association of Realtors has spent a lot of revenue on T.V. commercials to help the public understand the difference, but it's clear that the general public doesn't have a great appreciation for what a good Realtor brings to the table.  Some of this lack of perceived value comes from the publics having dealt with agents that fostered the negative impressions.

The first home I bought motivated me to get my real estate license because of the lack of knowledge the agent had.  When I would ask about square footage, school ratings, crime in the area, median incomes, appreciation trends, proximity to parks, shopping, or negative things like landfills she failed to have the answers.  She was however, clear to point out that, "This is the dining room," as if I couldn't figure that out on my own.  While in the process of searching, I would make the hour drive to the town from the University I was attending to find that agents couldn't show me the property for a few days, that there weren't agents in the office who could show the home I wanted in their absence, or that an agent wouldn't show me a home unless I first met with their lender. To me it was very clear that some of these agents only cared about their commissions.  I felt they were "Overpaid Locksmiths" on a couple of occasions.  

Then there are the hosts/hostesses in new homes, who often may not even licensed.  They help builders save commissions and may dress professionally and be articulate, but they are primarily there to fill out paperwrok and open the doors of the newly constructed home, to answer a few questions and if they are great sales people, they surely may try to pressure you into purchasing a home somewhat akin to the salesman at the car dealership who trys to get you to buy a car before you leave.

Part time real estate agents may give good service, and if they are a trusted family friend, they may try their best to work hard for you, but do they have the knowledge, training and market expertise to really know where your home needs to be priced, or to navigate complex legal documents and issues that can kill your transaction? Will they be your best negotiator?  Do they have the reputation and relationships among top agents to where their properties will be get immediate and serious consideration?  Do they have the contractors, professional photographers and the internet presence and marketing plans that other more successful agents have?

A good real estate agent knows the market conditions and how to negotiate for their buyer or how to price a home correctly to sell.  They will have all kinds of relationships with contractors, home and termite inspectors, mortgage brokers, property managers, real estate attorneys, home warranty companies, and home stagers.  In addition they will have a very good understanding of real estate laws and the contracts used in their state.  They will be responsive and know a great deal about the community, school systems and what homes in any given neighborhood are selling for, when they sold and what the condition of the homes were like.

A great real estate adisor will do all of these things, but in addition they will have taken all kinds of continuing education classes, they may even teach these classes, they might be a frequently sought speaker.  They have a clearly defined marketing plan and can give great exposure to the homes they sell.  Their businesses are more systemized and the experience you receive will more uniformly meet your expectations and likely exceed them. They will have fresh ideas and tips and they will spend more time advising you on the things you need to do to win the best home or to prepare your home for a faster sale at a higher price.  They also have relationships with CPA's to help you undertand tax treatment of the sale of your home, and financial planners to help you see how your home and real estate investments fit in your total financial picture.  Most likely they have developed strong relationships with the other top agents in the area, who love working with them because of their timely responses and abilities to make the transaction go smoothly to closing.  They may have been in the market for many years, but not necessarily.  These agents will often have a large database of buyers and sellers that they can match up with your home.  Most importantly, these top Realtors are lifelong advisors who put you above their commissions and advise you from a wealth of experience to help you avoid pitfalls.

Tomorrow we will discuss what questions to ask, and how to interview and pick the right Realtor/Advisor.

You can get more great advice from the "Rich Life Real Estate Team" by listening to the weekly radio show on WDUN AM 550 and FM 102.9 North Georgia's Newstalk Saturday's at 3:00 EST, or call 404-718-9126.