There has been a lot of discussion this month among REALTORS® about raising the bar for real estate agents. It started as a result of discussion about how real estate agents are viewed in the business world. It has continued with conversations held on Twitter, Facebook, Google Wave, blogs, conferences, phone calls and face to face discussions about how and what bar to raise.
There has been concern that agents will look bad, for the public nature of the discussion, something I obviously disagree with given where I have placed this particular post. It’s not that I’m not sensitive to the idea that we shouldn’t air our dirty laundry in front of everybody, It’s more a belief that it is out there and everyone needs to see that we are interested in cleaning it up. It is the public that has said their perception of us is low; it can’t hurt to have the public know that they have been heard and we are working to improve.
However, the question does persist, as to what we need to improve. Personally, I believe that a well trained, seasoned real estate agent can add value with negotiation skills, finance, construction & market knowledge, as well as marketing skills, area expertise and be a counselor, consultant and sounding board so that the consumer can make good real estate decisions.
On the other hand, I believe that as real estate agents, we operate in the middle of a semi-adversarial process where opposing parties have very different goals. This often leads to situations where one or both agents in a transaction may be perceived as a villain for not obtaining all the goals. In other words, if a party to the transaction believes they gave up more than they thought they were going to, they may like their agent and despise all others.
I believe that we must always strive to be better or raise the bar, and I will continue to take courses, read, attend meetings, study the market, talk to economists, talk to builders and developers, and study mortgage markets, real estate law and pass it on when I can. I would also really like to hear, from REALTORS® and CONSUMERS as to what services, what knowledge, what expertise, what educational standards, in other words, what bar should be raised.
Be great,
John
Tuesday, January 26, 2010
Tuesday, December 29, 2009
How many homes would you want to see?
An interesting discussion was started this morning on Twitter between REALTORS® in Michigan and North Carolina, concerning how many homes should be shown to a client before they buy. This started after a tweet from Diane Rish with a link to an article about an uber picky home buyer that saw 298 homes over a 2. 5 year period.
I don’t believe many people would think that it should take that many homes or even a third of that to make a good decision. How many homes should a buyer see before buying? Is there a number that is to many? Can a buyer see to few homes?
Personally, I have had buyers see 1 home and buy it, and I knew they made a good decision. I’ve had others see dozens of homes and make what I was sure was a bad decision.
Diane got it right this morning; “It depends on the buyer.” Some buyers feel they need to see a lot of homes to make sure they are getting a good deal, others find a real estate agent and place their trust in them.
I used to pride myself in being able to show on average just 3 homes before we would write a contract. These days that is harder as more of the purchase decisions are motivated by finding “a deal.” In our market “deals” normally have issues and buyers need to make apples to oranges comparisons. Nevertheless, I still feel that if my buyers haven’t seen the right house after a dozen, I’m not doing my job correctly.
How about you, as a buyer how many homes do you want to see? As an agent how many do you think should be shown at a minimum? How many need to be shown before you feel like you have missed what the buyer wants?
I don’t believe many people would think that it should take that many homes or even a third of that to make a good decision. How many homes should a buyer see before buying? Is there a number that is to many? Can a buyer see to few homes?
Personally, I have had buyers see 1 home and buy it, and I knew they made a good decision. I’ve had others see dozens of homes and make what I was sure was a bad decision.
Diane got it right this morning; “It depends on the buyer.” Some buyers feel they need to see a lot of homes to make sure they are getting a good deal, others find a real estate agent and place their trust in them.
I used to pride myself in being able to show on average just 3 homes before we would write a contract. These days that is harder as more of the purchase decisions are motivated by finding “a deal.” In our market “deals” normally have issues and buyers need to make apples to oranges comparisons. Nevertheless, I still feel that if my buyers haven’t seen the right house after a dozen, I’m not doing my job correctly.
How about you, as a buyer how many homes do you want to see? As an agent how many do you think should be shown at a minimum? How many need to be shown before you feel like you have missed what the buyer wants?
Thursday, December 3, 2009
Builders & REALTORS® like Oil & Vinegar
The relationship between builders and real estate agents is always a little strained. Like oil and vinegar, left alone, they would stay separate. Having been on both sides of the fence I can certainly understand why. When a real estate agent brings a client to a builder, they feel as if they lose control of the transaction, and may have to wait an additional 5, 6 or more months to get paid.
The builder on the other hand, feels that they are being questioned by an amateur, at least in regards to building, and that there is little to no value added. In many cases the builder is paying for advertising directly and writing the contract, so why pay the commission? In some cases, the well intentioned real estate agent makes claims that the builder either has to honor or at a minimum address, costing money, time and goodwill.
In order for this economy to improve we need real estate in general and new construction specifically to have better sales. So how do we put these two groups together to harmoniously and beneficially increase value for the consumer? One suggestion would be to reach out to each other. While sales are slowed with seasonal declines, take the time for some outreach and educate real estate agents, about the process and difficulties with building. Educate them about how you price and why. I guarantee real estate agents are taking more courses and learning more than ever. Add your information to the knowledge base.
REALTORS® need to do likewise. How many new homes communities have you been in recently? Do you know their price points? Do you know what drives them? Do you understand the difference in quality between builders A & B? Do you understand construction well enough to not make claims as to potential changes? Do you understand that some builders should not be asked to make changes?
Just as important, have you taken the time to talk to site reps and builders about what is going on in the market. They want to hear from you.
If you have a question, whether you’re a buyer, builder, or a REALTOR® feel free to ask. If I don’t know the answer, I probably will know someone who does. Let’s maximize these opportunities so everyone gets what they want. We can mix the two and leave a better taste for everyone.
Be great! As always comment are welcome.
The builder on the other hand, feels that they are being questioned by an amateur, at least in regards to building, and that there is little to no value added. In many cases the builder is paying for advertising directly and writing the contract, so why pay the commission? In some cases, the well intentioned real estate agent makes claims that the builder either has to honor or at a minimum address, costing money, time and goodwill.
In order for this economy to improve we need real estate in general and new construction specifically to have better sales. So how do we put these two groups together to harmoniously and beneficially increase value for the consumer? One suggestion would be to reach out to each other. While sales are slowed with seasonal declines, take the time for some outreach and educate real estate agents, about the process and difficulties with building. Educate them about how you price and why. I guarantee real estate agents are taking more courses and learning more than ever. Add your information to the knowledge base.
REALTORS® need to do likewise. How many new homes communities have you been in recently? Do you know their price points? Do you know what drives them? Do you understand the difference in quality between builders A & B? Do you understand construction well enough to not make claims as to potential changes? Do you understand that some builders should not be asked to make changes?
Just as important, have you taken the time to talk to site reps and builders about what is going on in the market. They want to hear from you.
If you have a question, whether you’re a buyer, builder, or a REALTOR® feel free to ask. If I don’t know the answer, I probably will know someone who does. Let’s maximize these opportunities so everyone gets what they want. We can mix the two and leave a better taste for everyone.
Be great! As always comment are welcome.
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