After my last post here is a comment I received from a Realtor.
I like to think that it’s less about the area that I know but the fact that I know negotiation and contracts very well. On top of it, my clients are usually tech savvy and want someone that communicates in the way that they do. Having come from a technology background I am able to do just that. The majority of my business is in King County, but I also work in north Pierce County and south Snohomish.
This is EXACTLY what I have been talking about, the average real estate agent specializes in making the commission not serving their clients. Every real estate agent had better know the contracts and how to negotiate, that is a given. But to say that you don’t need to know the area to best serve your clients is false.
I often hear that the value of a home (or any asset for that matter) is whatever a buyer is willing to pay for it. Real Estate Agents often use this to rationalize not knowing the area they are working in.
“If my buyers are willing to pay X for this property then that is what it is worth.” NO, that is how the listing agent is supposed to think, Not the agent representing the buyer. A Salesperson has this definition of value, not an agent. And agent is someone who represents the interests of their principle, not a salesperson.
Are appraisers supposed to set the value of a home at whatever price an individual will pay for it? No, just because someone is willing to pay 500k for a 200k home doesn’t mean that appraiser will value the home at 500k. Ok, sure there are appraisers who are just as unscrupulous as some realtors and lenders, but let’s stick to what they are supposed to do. The value is what the home will sell for in a specific market not to a specific individual.
How can a real estate agent who hasn’t walked the last 20 similar homes that have sold recently know what the value is? They can’t! Sure they can come up with lots of great rational why they can: look at the MLS history, tax assessed value ratio, neighborhood analysis, Zillow, experience, technology, and of course the best “It is worth whatever their buyer is willing to pay.”
Agents like this are a part(just a part) of the reason we are in the financial trouble we are in right now. They don’t represent their clients, they just sell them what ever they can and for whatever price they will pay.
I refer people to agents who specialize in an area. Sure they may work with people outside of that area, but that is the exception not the norm. Buyers and Sellers need agents who know the local market and have walked the homes that have sold. It is the only way they can really understand the value of a home.
I know and work with local agents who specialize in an area and act like an agent is supposed to, they represent their principle YOU! If you are looking to buy or sell a home in Western Washington, let me help you find the right agent for you and the area you are looking in.
4 responses so far ↓
1 Geordie Romer // Nov 25, 2008 at 12:22 pm
Jonathan- I agree with you 100%. I work in an area that is not part of the NWMLS which serves the Puget Sound area. We often get agents from Seattle who believe that a knowledge of contracts and a GPS will serve their clients. A well known attorney who blogs on RCG is also of this opinion. If you are represented by an agent who doesn’t know the area, you might not know about rumors about upcoming lawsuits, about local well depths and availability of water, about the frequency of the trains. You won’t know about the seller who has 20+ properties and is desperate to sell at least one of them. When I hear of a Seattle agent working in my area I know they are probably new or desperate - buyers might keep that in mind.
2 Debra Sinick // Nov 25, 2008 at 7:00 pm
HI,
I second the motion. We agents might as well just be a “Zillow” or King County tax records if we don’t bring that local understanding to the table along with contract knowledge and negotiation experience. Geordie is right. There is the local scuttlebutt that we as good agents should know, but it’s the builders, the quality of construction, the neighborhoods, the floor plans, the schools, etc that sell well in an area that is information only someone who has seen a lot of homes in an area can know.
Some of what is being talked about above also comes from the mindset of the buyer or seller. How many times have you heard someone say they’ll use the agent who is their uncle’s first cousin twice removed because they are getting a break in commission? There are still a lot of part time agents who sell a home or two a year and agents who go out of the area, because the buyer or seller thinks they are getting a “break.” But as Geordie said, this agent could actually cost the principal more money because of a lack of local area or contractual knowledge.
3 jonathanmartin // Nov 26, 2008 at 8:51 am
Geordie- Ah yes my favorite the GPS Agent. I have been guilty of that myself(part of the reason I am phasing into justs reffering-ou clients) “Sure I can show you homes over there, just be sure to sign my buyers agency agreement.” Another perfect example of an agent chasing the commission rather than representing their client.
Debra- You’re absolutely right about having knowledge of the builders. In my short tenure as an agent in West Seattle I have been able to preview all of the new construction homes and really get a feel for the builders. They are all different with varying degrees of attention to detail.
It is refreshing to hear a couple of agents who are of the mindset that it is not their job to earn a commission anywhere they can find it.
4 Robert // Jan 1, 2009 at 5:16 am
I loved this article, nice to see Debra and Geordie posting their honest opinions! Wish you all very happy and prosperous new year!
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