Image courtesy of BeSmartee, The Bad Agent
What do you look out for? What are the signs? In this article, we'll explore some common warning signs so that you can find the right professional for the most important transaction of your life.
Since real estate agents are on commission, often they will get conditioned to serve their interests first before the client’s interest. There are certain questions you can ask a real estate agent to see their motivation as to why they’re practicing real estate as a profession.
They’re basic questions and they’re existential. Questions like:
These answers will tell you exactly what’s driving the motivation behind the agent.
The ideal response you would want from an agent is:
“I’m selling real estate because I’m purely in love with my neighborhood. I love houses. I love the business of real estate. I love families. I want to be able to settle a family into a home.”
“Watching me settle family dynamics or whatever issue it is – gives me great pleasure.”
Selling a home is so much more than giving someone the sticks, bricks, and mortar that make up a house. Every time you sell a house, you’re really solving some sort of family situation.
Whether it was the Donner Party a hundred and seventy years ago or the Smiths who just moved in across the street. Each person or family is most likely moving for a reason – it’s not always people trying to grab a piece of the American dream.
The point is that the real estate agent’s REAL job is to make that transition as smooth as it can be.
Think about the Donner Party. Their move was tragic. Imagine this: When they finally arrived in San Jose they found an egotistical, “the clock-is-always-ticking”, selfish realtor in charge of finding them a new place to live. Doesn’t sound like a good fit, does it?
The survivors of the Donner Party eventually settled down. Hopefully, they found a kind person that helped them establish a residence.
Here are some other typical reasons people buy or sell a home:
Settling these type of family issues is really what a real estate agent does. To answer the questions above properly, the core questions, you’re going to find out if the agent is there because they love their neighborhood, they love people in it and if they love to help people.
However, if their answer is:
“I’m the best. I have the biggest numbers. I got more signs than anyone else.”
If they continue to talk about themselves, when then obviously you’re going to see that the agent is in it for himself or herself.
There is a really simple method to interviewing a real estate agent: Ask for the contacts of their three most recent customers. That way, you can ask the past clients openly and honestly about how the experience was with the realtor you’re vetting.
If the real estate agent gets awkward or tries to shy away from the question, then you should eliminate them from your list of possible agents.
Every real estate agent that is really good is going to have those people available instantly, already in advance, as testimonials for their business. A really REALLY good agent will even tell you who they had bad experiences with.
Yep! Because a good agent knows that it’s impossible to have a 100% of their transactions go smooth. It’s just the way life is. Not everyone is going to be absolutely pleased with the experience. Remember, buying and selling homes can happen during very stressful times.
If asked, the good agents are going to give you their enemies and their best clients.
Commission and agency is a conflict in nature. The fact that the agent’s compensation is created by some action that you may or may not do, leads to a lot of manipulation in the process.
When you have a real estate situation where you’re not exactly clear whether you should buy or sell - it’s perfectly okay for you to get a second opinion without taking on another agent. It might be a trusted advisor, lawyer, or somebody else that has expert knowledge. Get a second opinion from somebody else in the marketplace other than the agent, who is solely compensated by whatever your decision is.
If the agent models their business on being completely transparent and honest, they will promote this kind of thing. However, most real estate agents are a lot like politicians where they will be transparent to a point, usually when it serves them. It’s certainly the right of the consumer to go ahead and get that second opinion.
Often times, issues like these are not exactly black and white. So get the extra information, as it can be helpful when you’re trying to make a decision.
If any agent takes your listing and doesn’t put it on the Multiple Listing Service (MLS), then that’s a huge red flag.
If your house is not on the MLS, you should consider firing your agent. Now, if it’s on the MLS, and it’s been more than two weeks - then you have seen the marketplace.
Whether your house moves or not is beyond your agent’s influence after this point. And if the offer you have is the offer the agent has brought you, then that’s usually the market talking to you.
You might want to wait forever for that perfect buyer, and lock in that perfect price. But again, if it has been longer than two weeks, then the chances of getting that dream price are slim to none.
Right now all MLS records are available. You can instantly check the sales records of every agent in your area to see how much business they’re doing. You don’t want the agent that’s too busy. That agent is great at marketing and they usually lack in the customer service department.
Look for the agent who has been in the business for a decent amount of time.
Aim for an agent that has a minimum of two years of experience. Check his or her three most recent references before you decide to make them your agent. Finally, double check with the MLS records to make sure what they told you is true.
About the Author: Mike “Net” Work, Founder and CEO of United Estate Consulting. Securing the American right of life, liberty, and the pursuit of happiness, one estate at a time. Feel free to reach out to Mike Work on Twitter: @mikenetworker.
Real estate agents receive commissions from home buyers and sellers, collectively earning over $50 Billion per year. Learn how commission amounts are set, who pays them, and how they work in this article. Read more.
List of secured property tax rates for all counties of California fiscal year for 2014-2015. Read more.
If you live in California and are over the age of 55 you can effectively reduce your property taxes when buying a new home. Read more.
Houston Vs. Dallas? If you are considering moving to either of these major metropolitan areas, we've created a resource to help you make the decision process a little easier. Read more.
You've heard the term used before, but what does loan closing mean? Find out all you need to know about the process. Read more.
Whenever there is money to be made or money to be spent, some unscrupulous folks will take advantage, trying to game the system or commit all-out fraud. Read more.
Foreign real estate investment in the United States, both commercial and residential, is a huge phenomenon that is only expected to accelerate, maybe even to skyrocket, in 2016. Read more.
In this article, we explore how homeowners insurance works and what happens in the event of a house fire. Read more.
Your DTI is used by mortgage lenders to determine whether you qualify for a loan, and if so, for how much. Improve your DTI with these 16 tips. Read more.
A bankruptcy will make it very difficult to attain a home loan. These 5 tips will help you re-establish your credit quickly in order to qualify for a home loan. Read more.