Reader Susie sent in an article from msn.com called “10 things your real estate broker won’t say”, which first appeared on smartmoney.com as one of their regular ’10 things your ________ won’t say’ series. Because the original only had seven comments, and msn.com’s has over 200, here is their link:
http://realestate.msn.com/article.aspx?cp-documentid=21755590
My comments on the noteworthy items on their list:
1.”Your open house is really just a networking party for me.”
There are many myths about open houses, mostly made up by realtors who don’t like to work weekends, or those who just kick their feet up on the couch and watch the ballgame – and then wonder why they never sell anything.
If you are thinking of selling your home, ask the agents you are interviewing about how they feel about open houses. Their answer will tell you EVERYTHING about whether they are the realtor for you.
This is the right answer:
Buyers are energized by the internet, and gravitate to the fresh new listings. When they see a hot one, they’ll jump in their car and drive by – you’d be smart to have an open house to make it easy and convenient for them to see the property when it is hot.
When done right, OPEN HOUSES INSTILL URGENCY IN BUYERS. When the market is hot, like it is now, the only reason a professional open house wouldn’t sell is because the price is wrong. Get the price right, and use the open house as a tool to incite urgency.
2. “My fees are negotiable.”
They say you should shop around, but let’s be clear. You should compare the services provided, and then measure whether the corresponding fee is worth it. You can list your house for $100, so if you just want to save money, just call one of those guys. But don’t expect that their service, and sales price, will be the same as mine.
9. “My Web site is a dead end.”
Excellent idea to check the agent’s website, particularly for relevant content. But I disagree with this quote they included by a sales manager, “If a broker has to advertise properties that are already sold, it tells you that he doesn’t have enough inventory to keep his (roster of houses) full.”
The sold listings help identify the agent’s track record, both in the area you are looking, and how they did price-wise. Plus, if they have a lot of active (unsold) listings, they are a lousy agent.
10. “You can probably do this without me.”
Absolutely true, but not for everyone. Whether buying or selling, if you think you can do it yourself, I encourage you to give it a try.
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The smartmoney.com article was another one of these sensationalist pieces, whose intent seemed to be to rile up the reader into thinking all agents are lying thieves. Speaking of thieves, their article sure sounds a lot like the youtube on broker tricks, which you’ll probably see in the sidebar if you click on my youtube at the bottom.
One of msn.com’s own authors wrote this article, a much more balanced summary of what to look for in a listing agent:
http://realestate.msn.com/article.aspx?cp-documentid=13108430
If you prefer youtube, here’s one of my first videos, on interviewing listing agents from 2006 (back when my hair really was brown):
http://www.youtube.com/watch?v=N-9qpueJik8
(Almost 18,000 views – thank you!)
Great list.I love my broker, an honest man.would go to bat for him any day.He has made me a fortune.
My tenant can beat up your tenant!
Absolutely right about open houses. Before we seriously began looking for our house, we spent a few weekends looking at them. Very interesting to see a lot of different realors and styles.
As an example of how a bad open house can kill you, a house up the street went up for sale. The realtor missed the deadline in the paper (yes, some people still use the paper, since realtor website can be unreliable), so on the day of open house: 1 person. 1. (It was also Mother’s Day which was idiotic.) Then the summer started, and everyone left town and 16 weeks later, still on the market. Worst. Realtor. Ever.
Heard a funny one Sunday afternoon on a bike ride up the coast from a valet parking service guy…reminded me of the location, location…
As I was riding north through Cardiff(Locals know the dirt lot east of the coast highway across from the Chart house), a woman parked her own car in an open spot deemed valet by the guy standing in the lot collecting tips and fees. She asked, “Do I still have to pay $3.00 if I parked it by myself”? Surfer dude valet guy replied. “Its all about the land!”
Quick question.
If I was to buy a NOO property now and then six months later buy an OO property would I still qualify as a first time buyer for a potential tax credit?
Gee, I hope I didn’t upset you, Jim. That wasn’t my intent. Please don’t “permanently terminate” me from your site. (*Chuckle* Is that even a possibility?) I was just passing it along the article and wondered if you ever read it. I’ve only been a JtR fan since last Spring (by way of LA Times article online).
When I read that Top Ten list, my first thought was: We’re all so lucky Jim takes the time to offer an awesome blog for discussion and offers videos “on the street”.
I do have numerous past stories of agents that really are the worst and could be the poster child for Top Ten article. I also have stories of among the best (our first agent when we sold our first home we built over in Hawaii back in 1988.)
One bad example–an agent showing me a home twice for a couple hours over two days when it was already in escrow for 10 days without telling me that important fact. She proudly exclaimed she had 30 years. “experience”.
BTW,the sellers received an acceptable offer ($750K list, $740K sold) the first day after they listed it back in April, 2006. (It’s over on the next block from where I now rent–and I see it everyday when I walk. It’s now worth about $600K+/-). In hindsight, I’m ecstatic I didn’t buy it!
This RE veteran agent could have given seminars on how to be the worst agent! The 2nd meeting she spent the whole hour trying to get me to sign on the dotted line for her to represent me. I resisted and finally said I had to get my daughter home to do homework and we both made a hasty retreat as the agent kept giving her own personal sales pitch.
When I told her about the escrow over the phone, she ridiculously wailed in her defense: “They didn’t tell me that at the weekly Wednesday meeting!” She seemed completely perplexed when I said I would never use her as an agent because of her incompetence and wasting not only my time but my daughters too (She dislikes looking at houses but came after school the 2nd day).
Now I’m going to read the article you suggested, Jim. But please remember, I did note in my original post that the article had no date. I had no idea if it was published yesterday or 10 years ago. Alas, the REAL reason I posted it was hoping to elicit your two cents. Yippee! It worked!
*Chuckle* Your comments are always worth their weight in the best ice cream moolah can buy, Jim. And your videos are classics too. You really should get some kind of You Tubie award at a nationally-televised TV show. Hmmm, now that’s an idea–and you could wear a “Price Will Fix It” tee-shirt with Klinge Realty on the back. You will send me a check for my idea, right?…)
5. “Sometimes I forget whose side I’m on.”
This is in reference to buyers’ agents, and points out the inherent conflict of interest. Where’s the incentive for the agent to get the buyer the lowest price? Just another sign the RE industry needs regulation.
I would think the majority of the items on that list are true for the majority of realtors. Jim, while your followers understand why you’re different, I’m sure being painted with such a broad brush all the time makes your stomach churn.
Here’s a must read for everyone.
http://www.amazon.com/exec/obidos/tg/detail/-/0385514344/ref=ord_cart_shr?_encoding=UTF8&m=A2CUWL313X6OQM&v=glance
White elephant gift?
I managed to sell my condo without an agent or any advertising by telling the building’s custodian I was interested in selling.
The following weekend, three people showed up, one of them the buyer.
I gave the custodian a parting gift when I moved out. 🙂
Oops. Wasn’t quite done.
So while I did manage to get through the sale process on my own without a hitch, it was still a lot of work. It’s not an experience I would want to go through a second time. I’ll most likely be too busy running my business and won’t have time to deal with all the paperwork and legal mumbo-jumbo.
Would an honest realtor/broker use this type of range pricing tactic?
http://www.redfin.com/CA/Pauma-Valley/15229-Topa-Rd-92061/home/3097035
Nice home if you could move it.