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Realtors...Business Professionals?Posted Friday, January 25, 2008, at 10:24 AM
I am often perplexed that if people need law advice they turn to a lawyer, if they need medical advice they call a doctor, if they need insurance they call their insurance agent, if they have a sore tooth they call the dentist, but if they want to sell their home they ask the neighbor or Uncle Jim what it is worth and then they try to sell it on their own. I am not against someone trying to sell on their own, but there is alot more involved than running an ad and putting a sign in the yard. So why would someone not go to the professional in real estate?
Yes, I agree the profession has a few bad apples, but so do lawyers, doctors, etc. I also know that most realtors in todays society do not wear a suit and tie every day to show their professionalism. I can guarantee that most do not spend every day drinking coffee, driving expensive cars, and eating at the finest restaurants. (I guess Legends is a fine retaurant)Most are hard working professionals that do a great service for their clients. I just know that if I have a kidney stone I would not ask my uncle to come over and remove it. Unless, of course, he was a doctor. Comments Showing comments in chronological order [Show most recent comments first] |
Kenneth Parker is a local real estate agent.
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Maybe, that person with the house for sale has had a meeting or two with the few bad apples. Or, it's possible that 6% commission seems too high. Lemme tell ya, I'm buying a house right now and I'm just about tired of people's hands being in my pockets, maybe those people are experiencing life on my side of the fence!
LauraSFT, It is very expensive to buy a house or sell one. That is my point...this is the largest investment that most people make. One mistake could cost much more than the sales commission paid. As for the commission, I can not talk specific numbers but a GOOD realtor will be worth the cost of service. As the old saying goes,"You get what you pay for". Again, I do not mind someone selling on their own, but most likely he or she will not have the proper disclosures (mold,property condition,lead base paint to name a few), will not understand what inspections should be done, do not know a good closing attorney or worse will not even use an attorney or title company, will not have a legal contract, will not know how to handle the earnest money, OK I will stop. The point is there is a lot that can be missed or not done that may adversly effect the buyer or the seller.
Also, if the seller is trying to save the commission then the buyer will know that and think he/she can buy it cheaper because there is no commission. Both people can not save the commission. That is why alot of For Sale by Owners are bought by investors. When you look at the price paid the seller may have actually lost money.
Again, a good realtor can help price the house and ensure that all the legalities are handled. They also negotiate on the clients behalf and keep things from being personal between the seller and the buyer. As for all the hands in your pockets, that may be the worse part about a realtor's job. The transaction is dependent on everyone doing their part and if one person in the deal drops the ball nobody gets paid.
I had a realtor give me an estimate on what to sell my house for, "It hurt my feelings, and made me a slight bit of angry" I felt he had been sloppy and unprofessional the whole time I was dealing with him, I laughed and told him I don't think so; and have not talked to him since.
I've always wanted a career in the real estate field, I love watching the HGTV programs and Flip this House, I would like to have classes in Home Design were I could buy a home make it beautiful, and resale it; I haven't seen anyone that offers those type of classes. Don't know if that is the same as being a realtor or not.
But I think that if the realtor is getting a % from the sale of the house they should be a little more involved in telling the owner of things they could do to "IMPROVE" the sale of their home. Example: The rearranging of some furniture, Neutral colors - fresh coats of paint, Get rid of clutter and personal items, spruce up the landscaping a bit.
You don't have to be rude about it, just tell them these are some things that can help them get Top dollar for their home. Offer to have some Open Houses more often. This would make the seller feel the realtor "Really cares" about their progress in selling the home and not just a % of the sale.
Momof3&3step&1gran, Well said. A good realtor should be able to do those things and help you prepare your house. The problem with this is most people are not willing to do the little things that it will take and then they get upset about low offers or lack there of. Selling a house is like selling a car in that it should sparkle and look its best when people want to see it. If it looks like it is in poor shape then the offer will reflect that.
As for the realtor that you spoke with about your house, keep in mind that we do not set the price. The market will set the price. I am not sure what was done by this guy, but he may not have researched properly. I am sorry if he was unprofessional, but if proper research is done then the price is out of our hands. Often, I will turn down an over priced listing only to see someone else list it and let it sit on the market for 6 months and not sell. I think it is a realtors job to be honest and tell you if the property is too high. When necessary a realtor should turn the listing down for that reason.
As for the classes it takes 60 hours of class to take the state exam and an additional 30 hour course before licensure. From there if you want to be a realtor and not just a real estate agent you must join a firm that is a part of the Association of Realtors.
Momof3,
I totally understand about having your feeling hurt when the Realtor gave you the price. Your home is VERY special to you and most people take it personally. I too sell real estate, and unfortunately, the local market usually dictates how a price is determined. If you're too high, the property will sit on the market, especially if there are other homes like yours in the area that are priced less. As far as the agent not being professional, that stinks. Whether I am listing a million dollar estate, or a $90,000 ranch home, I treat all my customers with the same respect. And I also EARN my commission by keeping my clients informed about the market on a weekly basis and assist them in any way that I can. Not all Realtors are sharks. I have heard all the remarks, "realtors are like car salesmen". But ya know, I have to tell you that I have had some clients that were "tire kickers!".
SOME clients? I would bet you have a good number of "tire kickers". I am not in real estate, but a good agent is well worth the money.
People often do not see the work they do behind the scenes, not the number of times they give up there family or recreation time to show people who are 'just looking'.
I could go on about what you folks do, but suffice to say that a GOOD salesperson earns their money.
I had bought my house in 1996, it was my first house, a starter home Phyliss Rainwater was the realtor, she was very good. This house was 2br. 1ba approximately 850sq. ft, the lot size I believe is about 71 X 143 it has a 1 car detach garage the washer machine hook up was in the kitchen by the stove, and their was a small deck that had been closed up that had the hot water heater and a dryer hook up. It had electric wall heaters and a window air conditioner the year I believe was about 1951 or 1954. I had paid $31,000.00 for it.
In around 2002 I added on to this house (We torn down the back deck that was closed up, and added on a Master bedroom 12 X 15 plus a master bathroom, another 10 X 17 sitting area and a 1/2 bathroom, a washer and dryer hook up area, vinyl siding over the old and new addition of the house and put on a tin roof, plus added CHA. the cost was around $24,000,00 for it.
So now the house is a 3br. 2 and 1/2 ba. with a 1 car detached garage, it is 1,480 sq. ft. The houses around it are mainly 2br. 1 ba. approx. 750 -850 sq.ft. and maybe a few 3br. 1ba. too, they were selling around $32,000. up to $79,000.
I had went to the bank and got approved to buy a new home, but I also had to sell my current home; I was given a letter to give to realtors to show I was approved to purchase a new home. One of the homes I was looking at was a 4 br. 2 ba. home approx. 1657 sq. ft. for sale at that time for about $109,000. (Forclosure) it was on Horse Mountain Road. I believe it is for sale again for $94,000.
I had a appointment to see the house with the realtor, he was about 20 minutes or so late, and their was someone in the house doing some repairs. We looked in and around the house while the repair man was their, he said we could, and the realtor came close to when we were done looking.
I talked to the realtor about the house and decided I wanted to look at other houses, I explained that had to sell my house as well, he asked me if he could see my house I told him yes. I showed him my house and our conversation on the house went from ok to unprofessional, an easy flow of Foul Language in the conversations of someone and their hair.
My children were out side playing so it was nothing said around them, he wasn't rude, he just got too comfortable in the conversations that it wouldn't be what I call professional. He said he had to run some numbers on the house and he would get back with me on a price that I should sale the house for; it was 3 days later he got back in touch with me, and told me according to the houses that are selling in this area, "which are 2br. 1ba." I MIGHT be able to sale it for $59,000. I laughed and told him I don't think so. I told my mom about this and she told me their was a lady she knew who was selling her house with the same realty company and she said she was not pleased with her realtor, that they were rude and she did not feel they were doing much. Kinda sloppy.
I FELT that was too Low of a price, I could not see much of an appreciation (sp?) in the value of the home over the years; according to a Loan officer I had spoke with a couple years back she claimed it should be valued around $73,000 - $75,000 back then. But I do know location is important, and that the mortgage market has been going down, and their were quite a lot of forclosure homes for sale. So I was expecting more like $68,000. - $70,000. high end.
Needless to say I just parked my little hunt for a new home, and will probably try again in a few months or so. It was last summer when I was looking to sale and buy a home.
(KParker), do you have to be a Realtor or a Real Estate Agent to buy houses fix them up and resale them?
Stevemills,
You are one of the very few that recognize the amount of time and effort it takes to do this job correctly. I am forever taking courses so I can have the most up to date information that I can share with my clients. My family is very understanding about my job. I got home last night around 10 and here I am back at it again this morning. Momof3... you do not have to have your real esate license to buy houses to fix them up and sell them. But I will tell you that you need to really know alot about the market, local laws, marketing techniques and be able to have the funds to carry through your flip. You also must have a financial cushion to fall back on to pay your financing once you are finished with your flip while it sits in the market. I work with several investors that do flips. They are not as easy as it looks on TV. But if you have some extra money and feel like giving it a whirl, I wish you the best of luck!
JerseyGirl, Thanks for the info.
Jersey girl is correct about flipping homes. It is not as easy as they make it look on TV, but it can be very fun and rewarding. It may take looking at 10, 20 , or 30 homes before finding that deal that is worth the investment. You also have to be careful when buying in certain neighborhoods around Shelbyville. A few recent developments were sold over appraised value (not through realtors) and are now having high foreclosure rates. If you buy one of these and base your numbers on the original sales prices then you will more than likely over pay and not have the equity necessary to earn a profit. That is where a good realtor will be helpful to help you determine the true value. If you choose not to use a realtor just make sure you do a thorough check of the values.
I don't know what we would have done without our realtor when we bought our first house! We found her in Nashville. She made many trips to Shelbyville to help us look. Since our first house was a newly built house, we thought it should be an easy go process.
It was at first, but the contractor and his unprofessional sister-in-law realtor started trying to screw us over. They tried to back out of the contract on the day of closing saying that they weren't going to make any money on the house. My realtor flat out told them that it's not our problem, they should have thought about their profit before they listed the house for only $69,999.
After we finally closed and moved in, there were some things that needed to be fixed pronto. I was pregnant, and wanted things to be perfect. The contrator wouldn't come and fix them (a one year warrenty came with the house). Well, a few months after we moved in, our realtor called us to see how things were going. We let her know what was going on, and she said, "I'll call you back in a few minutes!"
Ten minutes later, the phone rings. She tells us her conversation with the sister-in-law realtor. It seemed like all she had to say was, "If you don't jump when my clients tell you to jump, then we'll see you in court. I have already let their lawyer know the situation."
LoL We didn't have a lawyer, but they didn't know that.
Needless to say, When we try to sell our house, and buy a new one, we will be very picky as to choosing a realtor. That person will have some big shoes to fill!
Mary, I think I know the realtor that you are speaking about and just want to let you know that she has broken her business affiliation with the builder. I am not aware of your particular transaction, but I know she made that decision after many instances like yours. She was also a fairly new agent...which is no excuse, but she did decide the listing commission on more listings was not worth the problems that may arise.
Your realtor sounds like a great professional and did the right thing to represent you even after the transaction. Driving from Nashville shows the service she also provided. It may be a good idea to give her a call when you decide to sell. She may not be able to service the listing but she can help you find a local realtor and possibly get a referral for her efforts. Just a suggestion:)
Jersey girl is correct about flipping homes. It is not as easy as they make it look on TV, but it can be very fun and rewarding. It may take looking at 10, 20 , or 30 homes before finding that deal that is worth the investment. You also have to be careful when buying in certain neighborhoods around Shelbyville. A few recent developments were sold over appraised value (not through realtors) and are now having high foreclosure rates. If you buy one of these and base your numbers on the original sales prices then you will more than likely over pay and not have the equity necessary to earn a profit. That is where a good realtor will be helpful to help you determine the true value. If you choose not to use a realtor just make sure you do a thorough check of the values.
-- Posted by KParker on Sat, Jan 26, 2008, at 7:09 PM
So it would probably be a good ideal, that if I should find a home I am sure I want to work with; that along with the home inspection, I also have it appraised to make sure I'm not paying more than what it's worth.
Thank's for the info. KParker.
Momof3
Your best bet is to find someone who is building savy. Home inspections and aprasial will help give you an idea of value. Make sure you keep an eye on your spending when upgrading. You don't want to "over do" it and not get back your investment. Kitchens and bathrooms are major selling features that can make or break a buyers selection. Keep that in mind when remodeling. Use your dollars wisely. Also keep a constant check on the competition. Comp your flip weekly to see whats new, whats under conract and what has sold. It might be difficult without the help of a Realtor. A Realtor has access to transactions at every stage of the listing. Knowing your market and the competition is essential to a profitable and successful flip.
I had a house in Smyrna that I had on the market for a few months. I was not living there but I left it fully furnished so it looked like a home until it sold. My realtor gave a couple the key and they went into my house every night for some reason. Every time I went to check on things at lunch I found the air turned down to 65 and all the lights and fans on. Even the big security lights on the detached garage. Needless to say I was really mad after about the third time! It took them forever to get their loan going and my realtor kept trying to get me to go down on the price for them. They finally got it together and we closed! I was selling it (as is) but they wanted new carpet, and a warranty so I agreed. I did also go down 2,500 but when they wanted my 6 month old side by side AND big screen TV I had enough! I finally told my realtor I would take it off the market and rent it before I would budge another inch. In the end I felt like she was working for them and their realtor rather than me. Needless to say I will never use her again!
Momof3&3step&1gran,maybe you could get a start on your new career by helping out some of the realtors and house-stagers.
You could observe them at work and be a "go-fer" or do odd jobs as you "apprentice."
Another way would be to do a little of the fixing up as a Habitat for Humanity or Special Spaces volunteer or by primping somewhere you hang out like church,school,work,your neighboorhood,etc.
You might try improving the home of a needy friend or gussying up the nursing home room of someone without family.
Work on sets when someone puts on a play.
Anything like that helps you develop skills and shows your taste.
Keep a notebook of looks you like and take pictures of places you've done.
That might be a good jumping off place into your new adventure.
Some of those ideals sound pretty good. I forgot I have 2 relatives that are realtors :).
Disgusted, It does sound like you had a bad experience as well, which again shows the importance of interviewing and selecting the right realtor. Your realtor should have been working on your behalf, and in some cases they are and it does not seem like it.
I had a house listed a few years ago and another realtor brought us a good offer. After a great effort I got my seller to accept it finally convincing her that she should take it. About 2 weeks later the buyers asked to extend the closing date a few weeks due to their loan. I tried to convince her that it would still benefit her. She refused and let the buyer walk because she was selling the house "too cheap". That buyer went across the street and closed on a house a few weeks later. My client's listing expired and a few months later she listed with another realtor. After a couple more months she sold her house for $7000 less than what we had on her previous offer. She also paid a mortgage for an extra 7 or 8 months. In the end I was looking out for her and she would have been much better to have listened. I just could not make her realize that I wanted to help her. She probably thought I was a bad realtor as well...probably still does.
Well you can't please everybody, you just have to keep doing what you know is right, that's what you trained for. Most home sellers are new to the game, and don't know any better. They want as much as they can get, and a done deal right away, so would I. But after a while reality will set in, on what you "could have, should have, would have" done if you known better...
KParker, thanks for the reply and I understand your point. However, I knew what my house was worth and would sell for and could have held out for more than I got. I think my realtor thought I would continue to give in since I was not living in the house. The problem was the couple did not qualify for enough money to buy the house in the first place. Sorry, that was not my problem! I'm not downing realtors, just that particular one. I still ended up with a great big smile on my face all the way to the bank...
It is true... you can't please everyone. I try to get the highest and best price for my sellers. I also try to get the best price for my buyers. But at no time, for either party do I "cut up" just to get it over with. Negotiations are a major part of any real estate transaction. I have been in a position several transactions where I represented both the seller and the buyer on the same porperty. It is VERY hard to do this, trying to keep everyone's best interest number one. As far as "not knowing any better", this is where a Realtor has a responsibility to their clients to educate and inform them of the process. As far as people not qualifying for a mortgage, or not having enough "down" money to buy a house, well before they even get into my truck I make sure they have a mortgage approval and the finances to purchase a home. Shame on the Buyer's Agent for not doing their homework on their clients before showing your property Disguested. It just wastes a whole lot of time and effort and in the end "no sale".
I have my house listed in the paper right now and not through a Realtor. I have had a lot of calls and some through a Realtor. Before I listed my house I did have a bad experience with a very rude Realtor. Not the one I bought my current house through but one that I called that had a house listed that I wanted to look at. She was very pushy and rude and I would not want someone to go through that same experience. I love my house and I have enjoyed showing it myself to people. I know what work we have put in our house and I know what its worth. If we cannot sell it on our own which does not look like we are going to have a problem doing THEN I will probably list it. The Realtor that did come to my house on Saturday was very nice and down to earth and thats the kind of person I would want to list my house through. I dont see a problem with selling ourself if you know what your getting into. I think people enjoy dealing with the actual people that own the house then a Realtor.
As a realtor, I just wanted to add that everyone is different. Some people prefer to work with realtors while others hate working with realtors. If you decide, however, to hire a realtor, be sure to interview more than one. Don't be afraid to ask for references. Good luck on selling your homes!