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Back to the original post:
I believe the reasons for the overall shoddy reputation are:
(Note, this does not apply to ALL agents but certainly a majority based upon my experiences)
A, The push to list no matter how out of touch the owner feels their property is worth.
B, In an effort to list as many properties as possible, the impression sometimes is given that a particular agent can get more than other agents
C, Telling the property owner what they want to hear in spite of reality
D, Not being truthful with the owner in terms of staging in fear of upsetting them and lose the listing.
E, Not taking the time to do REAL comps in pricing the property, instead see A
F, Wasting seller’s time with "Tire Kickers" not qualified
G, For the buyer, not really representing them but looking after them 1st. i.e. trying to convince a buyer an obviously overpriced house is just for them
H, Instead of actually taking time to determine what the buyer really is looking for, they send out packs of MLS sheets or waste both the buyer and agent’s time doing endless showing
I, Few actually sit down with the buyer to determine what they can afford and what they should expect for the amount they want to and can afford to pay
J, Very easy for unqualified people to become agents
K, Part Timers, what can I say!!
You can blame the buyers and sellers but because there are SO MANY agents willing to tell them what they want to hear, what does one expect!
[SIZE=3] [/SIZE]
Back to the original post:
I believe the reasons for the overall shoddy reputation are:
(Note, this does not apply to ALL agents but certainly a majority based upon my experiences)
A, The push to list no matter how out of touch the owner feels their property is worth.
B, In an effort to list as many properties as possible, the impression sometimes is given that a particular agent can get more than other agents
C, Telling the property owner what they want to hear in spite of reality
D, Not being truthful with the owner in terms of staging in fear of upsetting them and lose the listing.
E, Not taking the time to do REAL comps in pricing the property, instead see A
F, Wasting seller’s time with "Tire Kickers" not qualified
G, For the buyer, not really representing them but looking after them 1st. i.e. trying to convince a buyer an obviously overpriced house is just for them
H, Instead of actually taking time to determine what the buyer really is looking for, they send out packs of MLS sheets or waste both the buyer and agent’s time doing endless showing
I, Few actually sit down with the buyer to determine what they can afford and what they should expect for the amount they want to and can afford to pay
J, Very easy for unqualified people to become agents
K, Part Timers, what can I say!!
You can blame the buyers and sellers but because there are SO MANY agents willing to tell them what they want to hear, what does one expect!
Well, that is a pretty good list. May I add on?
L. Blowhard, in the face, relentless self-promotion.
M. Making assurances outside the agent's area of expertise.
N. Repetitively blathering cliche scripts as if they are fresh and innovative.
O. Entitlement attitude that supersedes client service orientation.
The sales person you will deal with at the builders office is a licensed real estate agent, and
In TX, Builders on site sales person are not licensed and builders don't want them licensed. That way they don't answer to the state RE commission. The state considers them a "private party" just like a FSBO.
In TX, Builders on site sales person are not licensed and builders don't want them licensed. That way they don't answer to the state RE commission. The state considers them a "private party" just like a FSBO.
I should have stated that all state laws are different. However, the builder sales person is still representing the builders interest and not the buyer.
It's interesting when people complain about Realtors (and I agree some of them deserve it) there is a common thread where the complainant always says "Most Realtors", instead of relating personal experiences of the good or bad. No one, not even Realtors, can say that "Most Realtors" are anything because they cannot have worked with "Most Realtors". I know some Realtors may also make that statement, but no matter who says it, the statement cannot be accurate.
We can determine that a certain number of agents, probably around 20% get around 80% of the business because that data exists and can be measured.
I've said before and I'll say it again, the bar should be raised so that when a Realtor gets his/her license s/he should have the necessary knowledge to go to work without having to spend the next few years getting that education at the expense of consumers. Also, they should be required to work with a mentor for a year to gain the necessary "real world" experience to supplement the school education.
But that would reduce the amount of dues revenue for the NAR and state associations due to fewer, but more qualified, agents entering the business; so that option will probably never fly with the NAR.
I would love to see a required "real world" experience being required for real estate licensees. This would, hopefully, weed out the wannabes and raise public perception. The public perception that I have encountered is that it's easy to get a license (true, a week in class, pass a test, and you're good to go), and then the math begins. If I sell 1 house a month, average $200,000, that's $6,000 x 12 months = $72,000/yr!!!. Notice I didn't say the correct math begins. But, that's the perception. Unfortunatley, this leads to a very high turnover and a large number of inexperienced, unknowing, and uncaring, people being turned loose on the general public. Most of the public has been exposed to these short timers at some point and use that as a basis for all agents.
Also, as it has been pointed out previously by some non-agents, there is a problem with the commission structure. The previous poster who noted 3 different houses, and had the same amount of work, had different compensation, based solely on sales price. I'm not defending the validity of the statement, only that the idea is what the general public thinks. It's that thought, that needs to be changed.
I have to add here that I have been licensed as a broker for about 15 years, but have not actively represented buyers or sellers in about 10 years. I have an active license and am a Realtor, but, for a number of reasons, not actively working for others. As a licensee, I have to disclose my status when I buy or sell property. Everyone is surprised to see that I am represented by another Realtor in these transactions. Yes, I have the knowledge and expertise to represent myself, but I want the details handled by someone else. And, in an emotionally charged situation, having a middleman is priceless.
Having said that, back to the original question, "Why do Realtors have an unfavorable reputation?".
1. Commission structure - The public believes it, so it has to be addressed. I have no problem justifying a higher dollar amount for different properties. First, there is higher liability, making a mistake, or perceived mistake is more costly on a higher priced property, And, the $1M+ buyers have the money to sue. You still have to defend suits, warranted or not. Next, as price increases, the number of able buyers decreases. So, you have to put more work into finding fewer potential buyers. And, finally, fair or not, you are paying for the people who are less than honest and never close. I used to tell my buyers, OK, I'll make the same deal with you. You will be at my beck and call for somewhere between 1 month and 6 months. You will take my calls at all times of the day and night, weekends, holidays, etc, drive me around, and run errands for me whenever I need. And, at the end of the time (I solely choose how long), I may pay you. Needless to say, noone ever took me up on the offer. But, they did begin to see the whole process in a new light.
2. Inept agents - Yes, there are plenty out there. (present company excluded). I don't believe more education is the answer. Or, maybe, better, more ongoing education would be more appropriate. And, I firmly believe there should be experience requirements. I would choose someone with 4 years of experience over someone with 4 years education every time. Other professions require working for another professional prior to full licensing, real estate should too.
And, I think we need to do a better job of policing ourselves. NAR claims to do this, but I don't think it works much. Most complaints deal with commission between agents, not the public. We've all seen the agent who has no clue, misses deadlines, makes misrepresentations, is unprofessional and mostly just shows up for the check, leaving the other agent to do their work as well. I think we need to complain to our local Realtor boards, their brokers, and possibly state licensing boards. The true professionals out there need to let everyone know that we don't condone unprofessionalism.
3. Educating the public - Many people have no idea what goes into closing a transaction. We need to make them aware that, yes it was a smooth closing, but it was because of all the time, effort and money that went into making it easy. Easy rarely happens by chance. As a Realtor, I can list properties on MLS and offer to do this, free of charge, for close friends. However, I also point out that I will run comps and give them a good idea of where it will sell. But, after that, I'm "outta there". I won't be negotiating, reviewing the contract, following up, showing the property, scheduling appraiser and inspector access, taking calls, running errands or participating in the transaction in any way, shape or form. I've only had one friend take me up on the offer, the others realized that they were better off going with a full service agent and paying the full commission. I also tell them that if I list it, they need to put in a bonus, over and above the standard commission, for the buyer's agent. After all, they do have extra work.
I don't think public perception of the industry will change anytime soon. But, I hope the true professionals will someday outnumber those who should be doing something else.
One last thought, I am reminded of the old one about the mechanic.
A man drives into a service station as his car is not working properly. The mechanic opens the hood, takes a look, gets his hammer and taps on the engine. Now, the car is running smoothly. The mechanic says "That'll be $50". The customer is outraged, "What, $50 for a tap, that's outrageous"! The mechanic replies, "No, the tap was free, knowing WHERE to tap, that's the $50".
Or you could take the time to go out and find a good one which is probably better than not having one at all.
I have, I've been through a few and all have either been awful, or just mediocre. I'm talking about not responding to emails, not showing up for house viewings, getting contracts in late, not sending comps, completing contracts incorrectly, showing up to see houses without informing the owner or agent, etc
This isn't our first house purchase, so I'm not new too it. This time around has been work. We dropped our last agent a month ago and are working with a new one now so hopefully she will be better.
And too add, I really feel like a buyer's agent is just an un-necessary middleman. But there is no other way to get into houses.
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If I could add a couple items...
