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The Problem With Real Estate Agents

More than one time I’ve been talking to someone that just despises real estate agents. They think they are overpaid and don’t really serve any purpose. The question always comes up “Why should I pay them a HUGE commission just to put my house on the MLS?” And I have to admit, I do agree with one thing…

Some real estate agents do a very bad job and are not worth hiring. In fact they may almost be a liability. If a client thinks that their agent is handling everything important but they actually are not, that could cause the client a lot of trouble. Or if  the agent gave them bad advice on purchasing a home, it could cost them a lot of money.

Having sold a lot of real estate myself as an agent, and as a property owner, I recognize the advantages of having a qualified real estate agent handling my transactions. Let’s discuss how to get this point across to the general public.

(Click here for a free Ebook I wrote on selling more real estate fast)

Showing people that real estate agents are valuable and needed.

Access to MLS data. The Realtor’s MLS system is one of the best and most accurate ways to look up comparable  properties for a client when they are buying or selling. As a Realtor, your knowledge of the MLS and the data you compile is extremely valuable to your Client’s. This data prevents them for paying to much for a house or selling their own house for too little. You can also give them other valuable information about how long they can expect before their home sells, if it makes sense to rent it rather than sell it, etc… Remember, you paid to get licensed. You take continuing education classes every year that you pay for. You pay MLS dues. You have done a lot of things to be able to be able to access this data. You are providing a valuable service to your clients if you use the MLS to its full capabilities.

Access to legal documents. I was recently told a story about a person’s friend that was buying a house from a FSBO. They decided not to use a real estate agent because they wanted to save money. They wrote up an offer. Luckily the friend that had real estate knowledge looked it over, and noticed multiple crazy errors that were a big deal. First of all they  were actually overpaying for the house (they probably would have found this out when the appraisal came in). The document listed a “quit claim deed” as the method of transferring ownership. Again, this would have got shot down by the lender who would know that they need a warranty deed and title insurance. Also, the seller wanted to hold the earnest deposit themselves. They wanted the buyer to write a check to them for $3,000. That sounds a little scary to me. The deal was destined to fall apart. The buyer could have got stuck in a big legal mess without the proper purchase agreement or any other legal documents properly prepared. Would this mess ever have happened if a knowledgeable real estate agent ran comps for them before they put in the offer? No! And if an offer was made it would have been for a fair price, and on an official and legally binding purchase agreement supplied by the association of Realtors.

A knowledgeable second opinion. We all know that buyers and sellers get emotionally attached to homes. Even for me, it is extremely hard to take a step back and be honest about the numbers and the other factors that should be considered for every real estate transaction. Your clients benefit greatly by having you give them your opinion, based on facts, not on your attachment to the property. You might show a buyer a house that they fall in love with, but see some major flaws you know will affect them negatively in the future. You may also show them a different house they don’t think they like at all, but be able to give them a couple simple renovation tips that turns it into their dream home for a fraction of the cost of what a fully remodeled or new home would cost.

Licensing laws and code of ethics. All real estate agents must follow very strict laws in order to stay licensed with their State. These laws are in place to protect people from being taken advantage of. And to take it a step further, any agent that is a member of the Association of Realtors also has a code of ethics to follow, which set very high standards. All of these measures are put in place to make sure the public has access to high quality real estate agents that will put the client’s interest first.

Be the best.

The agents out there that don’t do the best job can really give people the wrong impression. People spread bad news and horror stories a hell of a lot faster than good news or a pleasant experience gets around. If you are professional and well put together, it won’t take much for people to understand the value that you can bring to them.

I know I am missing out on a lot of the advantages that people have when hiring a real estate agent. Please help me out by adding your thoughts in the comments box below.

 (Click here for a free Ebook I wrote on selling more real estate fast)


Author: Justin Razmus

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1 Comment

  1. I feel one of the best reasons to use a Realtor, is using one that is knows the market that you’re in. If your selling a condo downtown you’d want to use a Realtor that specializes in that market. The biggest mistake sellers make is not doing there research on their Realtor. Someone that’s active in marketing an area more than likely will have the property sold in 30 days or much less. In this market with such low inventory a property very well may be sold before the ink is dry on the listing agreement.

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