What should I expect from my realtor

[Tia]

We bought our first house after finding it three blocks away from our rental in the Sunday paper open house listings. Odd how our realtor ,same company, never showed us this house but trotted us all over looking at more expensive houses in other areas...

 

[laurac260]

You should expect your realtor to partner with you to sell your house. If your house needs intense marketing to reach prospective buyers go with a brokerage that can provide that, especially if you live in an area that has corp relo traffic.


We've sold in hot markets in Florida, and depressed markets in Florida. We've sold all over the country condos , houses etc.

It really depends on a number of things...the market at the time of sale, what the banks are willing to do, is your home in a prime location, how many homes just like yours are you competing with, how are the schools, what are the taxes, hoa fees, are you in a prime relo area (corporate relos are still happening). Those are all factors your agent should know cold, and those are factors you have no control of.

What you can control is the condition of the house, cleanliness of house, yard, etc.

I spent years working in hotels. What I can tell you is, if the areas you CAN see are unkempt or in poor working order, the areas you CAN'T see are in worse shape. Same applies typically with houses. Unless you live in a white hot market, your home better hum or be prepared to get less than your asking price.

A picture on the wall that creates a nail hole after you painted to sell? Do it. No one turns a house down for a nail hole, and the picture adds eye appeal (providing its not gaudy ).

Getting the house in order, a plus. Spending so much time to get the house in order you miss prime selling time (summer) might work against you in the long run.

So much is variable. We just bought a house in an area where you EXPECT to have to improve. Our master bath is original to the house from the 60's. Most of my neighbors did the same. We traded down in house to trade up in taxes , and we happily did so. If we put the house on the market in 20 years it will still sell for top dollar with a 1960's bathroom. Very few areas can support that. The house we sold was 8 years old and sold quickly. Houses in that area that are older than 15 years sit on the market for close to a year sometimes.

 

[jlr10]

If they know you to have a deadline where you will be paying for 2 houses or your financial status is going to change, they will MAKE absolutely sure you are hung out to dry.

We found this to be true when we were trying to sell our townhome because we were in escrow on a single family home. The buyers agent and our agent sat at our kitchen table to negotiate, with us there. The buyer's agent presented the written offer stating that he knew the offer was a poor one and was drastically underpriced for our unit, but that he had to offer it, and had already told his buyer that the price was too low and would only be considered as a starting point for negotiations. Our agent's response was "You should take it. You already bought a home and need to sell this one fast." -which wasn't true we had a six month window to sell it. -Then he proceeded to tell the buyer's agent we would happily throw in the new washer and dryer if that would close the deal, when I responded that was not true, the response was "You have to sell this quick!" He didn't care that it wasn't a great deal for us, only that he could get it sold quick. When escrow closed he never told us. I called him to ask when it was going to close and he was snotty and told me it had closed several days ago and if I wanted to get our payment for the house I could come and pick it up, because he was busy and going out of town and didn't have the time to deal with me.

Our broker never did a open house to the public. But once he finally did the broker's open house we had several showings from realtors who had seen the unit then. I sold within 3 weeks to the first buyer, and 4 days after the brokers open house. In hindsight we probably could have gotten more, but feel our broker pushed us into a position where we were left with no room to negotiate. :annoyed:

 

[ampaholic]

I am late to this thread - but as a retired Real Estate Broker with over 500 home sales and former Director of the Association of Realtors I think I should share some of what I know to my fellow TUGGERS.

1. Open Houses are a tool - if properly used they can be effective at stirring interest in ANY home if the price is right.
2. Where a list agent earns their commission is pricing advice, presentation and negotiations (a very big part in soft markets).
3. "20% of the agents in a market do 80% of the work" doesn't mean what you think it does.

I.E. The pool of agents is full of people coming into the business and going out of the business - you want an agent who is firmly in the business! Ask for references from past clients.

4. Any house will sell if you price it low enough. the trick of a good agent is to get top dollar and do it quick:

Over the years I maintained about a 75% 1st listing success rate (75% sold during the first 90 day listing - 25% did not) - I was usually able to convince owners to try me for another 90 days rather than see them go with someone else - because I worked hard to market their home even when it wasn't going well.

The flip side is - if you are not happy with the effort your agent is putting out - change agents when your listing expires (or if they will cancel it).

5. I always let an unhappy owner cancel a listing if they wanted. I was OK with that because I usually had 8 or 10 at a time and didn't want the grief of being called all the time by a sad or mad owner. Heck I even fired a few owners back in the day. - IF you want out - ask for a cancellation.

6. Make sure your agent has a good reputation of working with other agents in the market (ask them) - a few in each market are so full of Hubris that other agents simply won't let their buyers near them (or their houses).

Good luck

 

[lizap]

You sound like a great agent! I agree there is a lot an agent can do other than list a house on MLS. I have sold 2 houses, and I will NEVER have an agent again that ONLY lists on MLS. There will be an understanding upfront of what the agent will do (in writing).

I am late to this thread - but as a retired Real Estate Broker with over 500 home sales and former Director of the Association of Realtors I think I should share some of what I know to my fellow TUGGERS.

1. Open Houses are a tool - if properly used they can be effective at stirring interest in ANY home if the price is right.
2. Where a list agent earns their commission is pricing advice, presentation and negotiations (a very big part in soft markets).
3. "20% of the agents in a market do 80% of the work" doesn't mean what you think it does.

I.E. The pool of agents is full of people coming into the business and going out of the business - you want an agent who is firmly in the business! Ask for references from past clients.

4. Any house will sell if you price it low enough. the trick of a good agent is to get top dollar and do it quick:

Over the years I maintained about a 75% 1st listing success rate (75% sold during the first 90 day listing - 25% did not) - I was usually able to convince owners to try me for another 90 days rather than see them go with someone else - because I worked hard to market their home even when it wasn't going well.

The flip side is - if you are not happy with the effort your agent is putting out - change agents when your listing expires (or if they will cancel it).

5. I always let an unhappy owner cancel a listing if they wanted. I was OK with that because I usually had 8 or 10 at a time and didn't want the grief of being called all the time by a sad or mad owner. Heck I even fired a few owners back in the day. - IF you want out - ask for a cancellation.

6. Make sure your agent has a good reputation of working with other agents in the market (ask them) - a few in each market are so full of Hubris that other agents simply won't let their buyers near them (or their houses).

Good luck

 

[ottawasquaw]

Rick,
All good points. I'd like to add that Open Houses really vary by market. Many folks have commented where they have had success with them, but in the last two markets I've worked, they are passe. Still, I know there are areas where they are effective.
As an agent, I am extremely reluctant to ask my seller to drop their price. It is an agent's job to provide a CMA and show that the listing is priced correctly.
Yes, with the introduction of the internet, there was a belief that real estate agents would go the way of travel agents. However, buying a house is much more complicated than a car or a vacation. There are still lots of legal issues which one can get tripped up on, especially as a seller.
So, your agent should be correctly pricing your home. You should probably interview 3 agents. I did this recently for a friend who was selling a home out of state. Your agent should properly expose your home to the market. Your agent should protect your interests as a client. There's a lot of behind the scenes work that gets done to make a smooth closing.
I'm in a slow market. I show a lot of empty homes. Fresh paint without nail holes is preferable. Access to the property is helpful! Not just clean and ready to show but the ability to show the home on the fly can be a big help!
Having the a/c on in the summer or the heat on in the winter is probably preferable. Otherwise, a prospective buyer's imagination tends to think the home might be poorly insulated and difficult to maintain a comfortable temperature. Another problem is that prospects will run out of a listing without fully looking at it if they are uncomfortable in any way - smells, temperatures, animals - even if they are offended by your personal items. The longer I can keep a buyer in a home, the better chance I have of selling it.
Hope this helps and good luck to everyone!

 

[ampaholic]

Absolutely - Opens are just one tool in the toolkit, and may be ineffective in certain markets - they don't fit every nut they are tried on.

I still have my reference book with dozens of good to great references my favorite reads (partially):

I know for a fact Rick saved me twice the amount of his commission during negotiations. I was amazed how quickly he got the buyer's agent working to raise the buyers original offer up to our asking price. We ended up within one thousand dollars of our asking price in a pretty dull market, hooray!

I got this reference by not selling out my client for a quick commission but by working hard to get the original 12% gap between ask and offer down to less than 1/2 of one percent.

My point is - marketing is not all the agent does for you.

The buyer came from an open house BTW (they had come without their agent)

 

[bogey21]

Why use a Realtor? Every house I ever sold (there were only three) I sold myself with a sign out front. Sure, maybe I got a little less but I don't think it was ever more than 6% (Realtor"s commission) less. 6% of $200,000 is a lot of money. For what? Title companies were always a breeze to work with as far as closing.

George

 

[bogey21]

There are still lots of legal issues which one can get tripped up on, especially as a seller.

Really? I never experienced any.

George

 

[ampaholic]

Why use a Realtor? Every house I ever sold (there were only three) I sold myself with a sign out front. Sure, maybe I got a little less but I don't think it was ever more than 6% (Realtor"s commission) less. 6% of $200,000 is a lot of money. For what? Title companies were always a breeze to work with as far as closing.

George

Some people don't feel comfortable doing their own dentistry either, George.

I am a very experienced home seller and I would always use an agent if I were to sell a home - but then I know the secret.

I will admit I do buy and sell my own timeshares without an agent - but I want one for my home if I sell - because I know the secret.

A hint of the secret is in my sig statement

 

[ScoopKona]

Some people don't feel comfortable doing their own dentistry either, George.

And snide comments like this is why Realtors "enjoy" the same kind of consumer confidence as timeshare salesmen and telemarketers.

I feel absolutely confident doing my own real estate transactions. It's not rocket science. Any reasonably-bright high school student could pass the real estate test. (Agreed, they need experience after that. But so do a LOT of agents in the business, too. Let's not pretend that getting the license translates into instant competence. Knowing the definitions of steering, red-lining and a mansard roof isn't helpful in 99.9999% of all real estate transactions.)

Point this out, and get replies such as, "Only a fool represents himself" and "Some people don't feel comfortable doing their own open-heart surgery."

Travel agents were once just as smug about the necessity of their jobs. "What are you going to do, book your OWN airline tickets? HA! Good luck with that!"

 

[ottawasquaw]

If you can do it yourself, great! I agree that lots of people in certain markets and price range do.

There are plenty of things I do myself but I don't imagine that my own personal competence will eliminate an industry.

Real estate laws vary from state to state. I can go online and get an insurance license in all 50 states with my credit card (why are you not proposing the elimination of that industry?) but I can't do that with my real estate license.

The original poster doesn't live in the home and that's quite common these days. A lot of my business is with estates and investors, but my greatest joy is working directly with the owner occupant. And, not all homes are $200k, so the commissions are not always as big as you imagine.

People list their homes to expose them to more buyers. Many buyers are reluctant to work directly with sellers. Then there are security issues. Most thefts occur during Open Houses - something to keep in mind if one is being held in your home.

 

[ampaholic]

And snide comments like this is why Realtors "enjoy" the same kind of consumer confidence as timeshare salesmen and telemarketers.

I've got a book with over 50 Good references from former clients - do you? I am quite happy with my reputation as I am quite happy with any FSBO selling their own home if they want to.

What you and George don't seem to "get" is that lots of people don't like selling their own home for a myriad of reasons - most of which have nothing to do with the "cost" - since most realize that the "cost" of the agent is borne by the buyer and they don't like doing all that work for free.

If you and George enjoy the work more power to you, but your comments on THIS particular thread are off topic.

I feel absolutely confident doing my own real estate transactions.

Yes, you seem like a supremely confident person - what with the way you throw around words like snide to knock others about - perhaps you should do like Tony Robbins and sell THAT as well.

FYI - my expression that some (of course not YOU) don't like to do their own dentistry either is simply a quick and evocative way to communicate how many of my former clients felt - not a suggestion that you would ever feel that way.

PS - why don't you use some of that big boy confidence up and join TUG.

 

[bogey21]

What is ironic about this is that yes, I sold my last 3 houses by myself but a number of years ago when I decided I wanted out of 3 TS Weeks on HHI (Marriott Harbour Club, Marriott Heritage Club and Village at Palmetto Dunes) I hired a local Realtor (name Dave Graham) to sell them for me. He was there. I wasn't, and he did a great job. I guess this just proves one has to be flexible depending on the circumstances.

George

 

[Kal]

Some people don't feel comfortable doing their own dentistry either, George.

I am a very experienced home seller and I would always use an agent if I were to sell a home - but then I know the secret.

I will admit I do buy and sell my own timeshares without an agent - but I want one for my home if I sell - because I know the secret.

A hint of the secret is in my sig statement

I have bought and sold a home and prepared all the closing documents myself. It's not rocket science. However, in the last few years I relied entirely on professional RE Agents. In one case the agent made an error on a closing item and had to eat the cost herself. In another case the agent really was on top of the market, did a magnificent job of staging the property and created a bidding war which resulted in a significantly higher return to me than I could have done by "doing my own dental work" i.e. an amateur.

Today, I'm selling another residence in a different state. There's no way I could apply my amateur credentials in completing that transaction. I am using a top notch agent and we close in 30 days.

Like others here, I've bought, sold and closed time share resale properties, but that's a piece of cake.

 

[ScoopKona]

What you and George don't seem to "get" is that lots of people don't like selling their own home for a myriad of reasons - most of which have nothing to do with the "cost" - since most realize that the "cost" of the agent is borne by the buyer and they don't like doing all that work for free.

Agents ALWAYS cost money. Always. They cost both the buyer and the seller. The buyer, of course, is the person writing the big check. So yes, the buyer pays the 6%.

But the seller almost always has to take a cut in price to account for half of that percentage. Otherwise, it would be like listing for 6% too much for the market.

I've held a real estate license for more than a decade. I used it for my own transactions. For the past few years, I've had my license on ice with the division. It's just as easy to purchase real estate without a license, DIY-style, as it is to go through the bother of joining the Realtor board and going through all the continuing education. I just call the listing agent and swing a deal.

It isn't rocket science. And as more and more people learn that DIY real estate is no big thing, Realtors will become more and more like travel agents.

 

[ampaholic]

Agents ALWAYS cost money. Always. They cost both the buyer and the seller. The buyer, of course, is the person writing the big check. So yes, the buyer pays the 6%.

But the seller almost always has to take a cut in price to account for half of that percentage. Otherwise, it would be like listing for 6% too much for the market.

I've held a real estate license for more than a decade. I used it for my own transactions. For the past few years, I've had my license on ice with the division. It's just as easy to purchase real estate without a license, DIY-style, as it is to go through the bother of joining the Realtor board and going through all the continuing education. I just call the listing agent and swing a deal.

It isn't rocket science. And as more and more people learn that DIY real estate is no big thing, Realtors will become more and more like travel agents.

Your cognitive dissonance is showing Scoop - you are trying to adjust your perceptions to fit your beliefs - there will always be Real Estate agents. Your effort to equate them with Travel Agents is strained - it fails to account for the fact that there are plenty of travel agents doing quite well without YOU.

I am sure you are not so full of hubris to think that just because YOU don't use them they rolled up and died.

You also fail to account for the fact that the "cost" of the agent is already accounted for in the Real Estate market.

Since 96% to 98% of the homes on the market are already priced with the commission figured in - when you price your home competitively with them you are also including in YOUR price the commission amount. See - if they were all 6% less - so would you have to be - to remain competitive that is.

In my experience buyers seem to "know" that a FSBO is really thinking they can get that built in commission amount into their own pocket - out of the buyers pocket.

The buyers usually don't (as a species) like giving that commission amount to an owner - so they tend to "discount" the FSBO by that much or more. This is one reason FSBO's tend to hang on the market for a long time, well that and the fact that they are not listed in the MLS.

Of course since no two homes are exactly alike - making it impossible to do a scientific study of this - we will just have to rely on our observations, um I mean perceptions.

 

[Kal]

Agents ALWAYS cost money. Always...

I learned long ago....Never say NEVER, never say ALWAYS.

 

[ScoopKona]

1) Your effort to equate them with Travel Agents is strained - it fails to account for the fact that there are plenty of travel agents doing quite well without YOU.

2) You also fail to account for the fact that the "cost" of the agent is already accounted for in the Real Estate market.

3) Since 96% to 98% of the homes on the market are already priced with the commission figured in - when you price your home competitively with them you are also including in YOUR price the commission amount. See - if they were all 6% less - so would you have to be - to remain competitive that is.

4) The buyers usually don't (as a species) like giving that commission amount to an owner - so they tend to "discount" the FSBO by that much or more. This is one reason FSBO's tend to hang on the market for a long time, well that and the fact that they are not listed in the MLS.

[Numbers added to quote for clarity.]

1) Read this thread. I already mentioned that niche travel agents are doing quite well. But the days of NEEDING them to purchase airline tickets are long gone. I have friends who were travel agents in the 1990s when the Internet started taking off. They had the same hubris as real estate agents do today. "We've always been around," "People will always need our services," "People don't WANT to do their own travel planning." As recently as 15 years ago, there was a travel agency in nearly every strip mall in North America. Now? Not so much.

And when there is a viable alternative to the MLS, it's going to be the same thing for Realtors. Let's face it, too many people have had rotten experiences with Realtors. Just read this thread for examples.

2) I don't fail to account for it. The best transactions are the ones that don't involve any realtors at all. All Realtors do is jack up the price of the house. They do not add 6% of value to the transaction.

3) Another Realtor exaggeration. (Like the one that buyer's agents always use, "We don't cost the buyer ANYTHING!") The market will work just fine without them. Supply and demand will take care of pricing.

4) FSBOs languish on the market because FSBO sellers are OFTEN too emotionally attached to their property to price it correctly. They went the FSBO route because they didn't want to listen to a Realtor's advice on where to set the list price. If they priced their house correctly, it would sell just fine.



It's only a matter of time. The internet is going to break the broker/agent business model as surely as it broke newspaper classified advertising and travel agencies. At the end of the day, Real Estate is basically an information-based business. And the internet excels at ruining information-based businesses. Every buyer and seller who goes the DIY route and lives to tell the tale is another nail in the coffin.

EDIT: PS -- And Kal: Deserts are always dry, fires are always hot, and agents ALWAYS add to the cost of the transaction. Always.

 

[Kal]

[Numbers added to quote for clarity.]
PS -- And Kal: Deserts are always dry... Always.

Obviously you have not had:

• Lemon Souffle with Grand Marnier sauce
• Cream Brulee
• Crepe Suzette
• Vanilla and Lime Flan
• Chocolate Lava Cake
• Bread Pudding with Bourbon Sauce
• Rice Pudding with Caramel Sauce
• Strawberries with 25 year Balsamic Vinegar

Always not dry (unless I totally change my way of preparation).

 

[ampaholic]

[Numbers added to quote for clarity.]

1) Read this thread. I already mentioned that niche travel agents are doing quite well. But the days of NEEDING them to purchase airline tickets are long gone. I have friends who were travel agents in the 1990s when the Internet started taking off. They had the same hubris as real estate agents do today. "We've always been around," "People will always need our services," "People don't WANT to do their own travel planning." As recently as 15 years ago, there was a travel agency in nearly every strip mall in North America. Now? Not so much.

And when there is a viable alternative to the MLS, it's going to be the same thing for Realtors. Let's face it, too many people have had rotten experiences with Realtors. Just read this thread for examples.

2) I don't fail to account for it. The best transactions are the ones that don't involve any realtors at all. All Realtors do is jack up the price of the house. They do not add 6% of value to the transaction.

3) Another Realtor exaggeration. (Like the one that buyer's agents always use, "We don't cost the buyer ANYTHING!") The market will work just fine without them. Supply and demand will take care of pricing.

4) FSBOs languish on the market because FSBO sellers are OFTEN too emotionally attached to their property to price it correctly. They went the FSBO route because they didn't want to listen to a Realtor's advice on where to set the list price. If they priced their house correctly, it would sell just fine.



5) It's only a matter of time. The internet is going to break the broker/agent business model as surely as it broke newspaper classified advertising and travel agencies. At the end of the day, Real Estate is basically an information-based business. And the internet excels at ruining information-based businesses. Every buyer and seller who goes the DIY route and lives to tell the tale is another nail in the coffin.

1) I purchased my own air fare as long ago as 1969 - but I didn't try to set up an entire itinerary by myself - two different things. I will be quite impressed if you make your dream of a trip to the Taj Mahal a reality without the services of a member of NACTA - just sayin'

2) Baloney - this is just your belief, not any kind of fact - many believe differently and have experiences to back up their beliefs. It is true hubris thinking that just because YOU believe it - it is true.

Why don't you start your own thread "Why you don't need a Real Estate Agent" instead of trying over and over to hijack this one?

3) I'm really not sure why you would call baloney on such an obvious fact. So your market has over 2% to 4% FSBO's? Or you think all those other sellers listed with agents are not thinking they will need to sign over a commission to the listing agent and didn't figure that in their pricing? You never price your FSBO competitively?
What exactly do you mean - an exaggeration?

4) Wow, now you even look down your nose at other FSBO's - "they are not sharp enough to capitalize on an agent's good will - and (mis)use an agent for a CMA to price their house right".

5) More hubris - your perceptions are reality - I know better to argue the unknown (future) with someone who already knows how it will play out, so you are right and I am not worthy, I bow to your crystal ball. - could you PM me the next Power Ball numbers please?

 

[ampaholic]

Obviously you have not had:

• Lemon Souffle with Grand Marnier sauce
• Cream Brulee
• Crepe Suzette
• Vanilla and Lime Flan
• Chocolate Lava Cake
• Bread Pudding with Bourbon Sauce
• Rice Pudding with Caramel Sauce
• Strawberries with 25 year Balsamic Vinegar

Always not dry (unless I totally change my way of preparation).

:rofl::hysterical::hysterical:

And one time in Explorers a leader got his deserts by being thrown in the lake!

 

[Luanne]

Obviously you have not had:

• Lemon Souffle with Grand Marnier sauce
• Cream Brulee
• Crepe Suzette
• Vanilla and Lime Flan
• Chocolate Lava Cake
• Bread Pudding with Bourbon Sauce
• Rice Pudding with Caramel Sauce
• Strawberries with 25 year Balsamic Vinegar

Always not dry (unless I totally change my way of preparation).

Deserts are dry.

Desserts maybe not.

 

[ScoopKona]

I will be quite impressed if you make your dream of a trip to the Taj Mahal a reality without the services of a member of NACTA - just sayin'

Why on Earth would I need a travel agent for a mundane trip like India? Get visa, buy airline ticket, book accommodation, buy Lonely Planet guide, buy rail tickets, done. It's not rocket science. I haven't needed a travel agent since EasySabre came out.

And yes, the writing is on the wall for the broker/agent business model of real estate. You don't need a crystal ball to see it. Six percent on the purchase of a house is a LOT of money for most people. Once people learn they can skip the entire six-percent bit, they'll jump on it.

Eventually, some start-up will create an alternative to the MLS -- and it will be the real estate equivalent of EasySabre. There are plenty of buyers and sellers who do not like dealing with Realtors. Just like there are plenty of car buyers who do not like dealing with car dealerships and salespeople. The internet has already marginalized the travel agent and the newspaper classified ad. It is currently marginalizing the car salesperson and just about everything in the entertainment industry. It will eventually marginalize the real estate agent.

And the reason it WILL happen is because employing real estate agents is like paying a voluntary 6% tax on the transaction. Once there are viable alternatives, people will flock to them.

As for Powerball numbers, the lottery is a voluntary tax on people who are bad at math. They should change their slogan to, "You can't lose if you don't play."

 

[ampaholic]

...

Eventually, some start-up will create an alternative to the MLS -- and it will be the real estate equivalent of EasySabre. There are plenty of buyers and sellers who do not like dealing with Realtors. Just like there are plenty of car buyers who do not like dealing with car dealerships and salespeople. The internet has already marginalized the travel agent and the newspaper classified ad. It is currently marginalizing the car salesperson and just about everything in the entertainment industry. It will eventually marginalize the real estate agent....

EasySabre? EasySabre? -- EasySabre is dead, Hahaha - bad anaolgy.

Alternative to the MLS - will that be before or after these 19 inventions we won't ever get to see?