Every week, I find out that (some) consumers are simply arrogant, and really think they know better than the professional agent, what real estate is about, and why the market is what it is, and why one should buy today or not, and what type of investment real estate is actually still a good deal, etc.
I can only come up with two main reasons without going into detail about a specific Realtor.
1. Consumers really are convinced that because they are online, and can read all kinds of "opinions", that they actually know what it means and how to interpret it, and how to act upon that information in today's market.
2. The barrier to entry is too low, and consumers simply have no respect for Realtors, because the "knowledge base" is simply not there. This reminds me a little of the financial services industry in the late 90's.
Consumers go to Zillow for values (what a joke that is but one has to explain it every time, and then they still don't believe you). They read articles of "how to sell your house yourself", or "how to buy an investment property with no money down" and think it is road map to success. They speak with family and friends, and listen to them rather than you, for who knows what reason, nothing do to with real estate knowledge. What I dislike is that consumers have an attitude about it, and are simply not even willing to listen to your point of view. I am of the opinion that if you ask me (and you should ask a professional in the business) , I will give you my two cents worth, and will not tell you what you want to hear. I can admit I have lost clients like that. But my integrity is not for sale (except for $60 million).
I started my monthly meet up meetings (about 8 years ago) to make sure consumers will not make stupid mistakes that can be avoided, before they sign on the dotted line and it is too late. Two very nice people who owned a fourplex and a duplex lost both properties because of bad advice from friends.
The other side of the coin, I agree, is that the barrier to entry is simply too low ( and I have seen many Realtors write about that too) , and we, yes all Realtors, should do something about that soon, very soon. Knowledge and experience cannot be beaten, and will change the mind of the consumer that they are working with a professional. Perhaps you remember I advocated for having any consumer sign an agreement to work with them, buyer or seller.
I will most probably retire Q2 next year, so I guess I feel a little more free to tell whats on my mind. I just hope it will inspire many of us to do something this serious "distrust". Still very inclined to write a book about my experiences in real estate.
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