Real Estate Agents Are More Like Safe Crackers Than Leprechauns

For many people not in the real estate business, they think that an agent simply gets a listing and then collects the pot of gold at the end of the closing rainbow. Those of us in the business know differently. We think that pot of gold is hidden in a safe. In order to open up that safe you have to align many different tumblers. Whether you are the listing agent or the selling agent you have to work together to get those tumblers to work just right. Both agents are working on their own set of tumblers and each one may not be able to move forward unless the other agent does their part as well. Of course then there are all your "partners" with their hands out looking for their fair share.

The Caper

You worked with a client and they agreed to list their home with you. You now have to plan the caper. You were entrusted with this person;s most important sale. You have to market the property and find your partner in "crime", the buyer's agent that will bring his client's safe full of gold. You work with your client to de-clutter the home. You may bring in a maid service to do a deep cleaning. You could also hire a stager. Then you bring in the photographer. All of a sudden you have made an investment in this caper. You are working with yoru client and investing time and resources to attract that buyer and his safe.

The buyer's agent makes your client an offer. After a couple of communications back and forth you come to terms and the safe is in sight. Everyone has come to an initial agreement. Now both agents have to work together in order to make sure the tumblers start coming into alignment.

The Tools and Partners

The buyer talks to his partner the lender, one tumbler clicks. The seller prepares an appraisal packet, another tumbler clicks into place. Option and  earnest money is  delivered, two more tumblers click into place. In the meantime the buyer has arranged for an inspection (another partner enters the picture.) Now the buyer is making an investment in the caper. Thee inspection has caused some conflict and has to be dealt with before any more tumblers can be aligned. At any point in time  the job could be cancelled.

We move pass the conflict and another big tumbler clicks into place. Behind the scenes another partner, our title man, is tracking along getting additional documents and insurance. Sooner or later somebody is going to have to pay the title man if all goes well. The lender has brought in one of his specialty guys, the appraiser. Thee appraisal is scheduled and you as the listing  agent meet with the appraiser and provide him information to assist him. He is not  very open to assistance  and prefers to do things his way but sometimes you can influence him. His work could throw end the whole job.

The appraisal is approved and  the information that the gold is in the safe is confirmed. The agents from  each side meet with the final safe cracker thee  title man. The title man checks both  sides of the tumblers. He ensures  a;; the tumblers are in alignment. Each principal grabs a hold of the handles and turns. Finally the safe opens.

Dividing Up The Loot

The seller gets the biggest share. Depending on his silent partner the mortgage holder will determine how much of the big share he gets to keep. Out of that share he will pay smaller amounts too the title man, He will pay a larger amount to the listing broker as he was the brains behind the  entire  job. Out of thee listing broker's share the buying broker will be paid with the buying broker paying a share to the buyer's agent. The listing broker will also pay a share to the listing agent. 

This caper was a success. Thee next time someone says real estate is easy money like a leprechaun finding a pot off  gold at the end of the rainbow, explain to them that real estate is more like cracking a well guarded safe. The planning, tools, partners, execution all have to align like tumblers before any money is made. Investments are made betting that you can make sure this all comes together. If anyone of those tumblers cannot be aligned there caper may have to be restarted. 

When you want to be part of your next real estate caper in Frisco Texas please give me a call.

As a client of mine working with me on a real estate caper, Your Success is My Focus.