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True, that. Also worth mentioning is that in Florida a prospective licensee doesn't study our contracts nor is tested on them. The real fun doesn't begin until a new licensee actually starts writing offers or fielding offers from the other miscreants. Having and using contract knowledge for their clients' benefit tends to separate some of the deserving from the undeserving.
I sometimes feel like the OP when I look at how poorly the agent on the other side of a deal is representing their client. There's a lot of incompetence in our profession [at least in my area] but there are also plenty of agents who bring value and earn their checks. That value might be hard to see when you don't know what you're looking for.
We touch on contract docs in pre-licensing, but since the forms are proprietary to NCAR and members, and aren't official state forms, it is incumbent on the licensee and their broker-in-charge to develop knowledge and skill in the document library.
The main reason is that real estate transactions can get emotional. The Realtor is a buffer between the seller and the buyer. I've sold two houses using a Realtor and both times, the buyer was behaving irrationally toward the end. I was glad to have a Realtor approach them diplomatically.
My bad, it's way early in the morning here and clearly I need some coffee, LOL.
Even so, still think something's missing from this story. Why did you go to the bother of getting a license if you hadn't yet figured out this was something you believe in? I suppose you could claim you're a jaded person and you don't care about believing in what you sell; you're simply about making money. But that doesn't make sense either, because people who are like that don't go around bragging about it in the internet. That would be counter productive to your goal.
I am jaded. I think most jobs are BS and our whole society is based on consumption and I’m not even a materialistic person but I still want to make money so I can buy more experiences in life like travel. That being said I also need to make a living and think about how I will support myself later in life when SS collapses. I do find real estate naturally interesting. After doing title escrow for over a year I was already more then half way home in getting my license so I said why not get it.
I asked once what a listing agent does and the joke I heard back was play golf all day.
As far as a selling agent. You are working for free in hopes of making a sale and getting paid. You have to take a client to see maybe 30 or more houses. If they are looking for starter homes you may have to see a lot of junky ones and waste each others time especially if the person is not familiar with the area.
Before you get into this you should find a friend who is a selling agent and go out with their clients. If the home is prices right and in good condition and is exactly what the buyer, who is paying cash wants it's an easy job. Otherwise you a RE agent may have to deal with banks, title companies, the town, , nasty buyers, nasty sellers, etc. You have to console the buyers when a sale or offer falls thru, find out about programs for first time buyers, know about FHA, USDA, VA, conventional loans, etc.
You have to hustle and be able to ride out the bad housing slumps and bad housing markets. After the housing crash I'm sure many RE agents quit the game.
As far as the Florida test being easy I think you are right. I think the average person with an IQ of 100 or a HS diploma with college prep classes can pass it. The person I bought my home from was an agent., the person who moved into the last place I lived had a RE license and my first Roommate in the town I bought my home has a RE license. I think there is a lot more to know and a lot of legalities that some RE agents don't even know about. I don't think a 50% pass rate is high.
The craziest thing is when glorified bank tellers have that MLS # on their card (I assume they had to take a course) and they don't even know what kinds of loans their banks offer or how to do a pre approval or answer questions about it or input date into the computer to see if you qualify.
Last edited by LifeIsGood01; 01-02-2019 at 08:27 AM..
Lots of good comments here. I thought I'd add a comment about the MLS and CMAs. I think you were given a bad demonstration or you imposed your own biases which colored your understanding of what you were told. First, you know from your licensing class that appraisals and CMAs are both art and science. The way I see it, the science part is easy (using pure data when there are plenty of comps) but the art part comes from experience. Both are important and certainly both are used by appraisers. There's no value to anyone if an agent wings it because, ultimately for most transactions, if the property doesn't appraise, the deal is an exercise in futility. There are agents (IMO) who will do what you mentioned but there are many others who will use the data first and let the information do what it is supposed to do without imposing their own bias. That's part of being a professional. The problem with the perception of the real estate business is that too many people think we are all about the money when, at least for me, it is more about the process (providing truth and good advice, using good listening skills to achieve a common goal, providing a high level of service, striving for high ethical performances from everyone involved, etc.) and the money is nothing more than the result of doing a good job. In other words, the value is in helping others, doing it well, and gaining a sense of satisfaction from doing it.
The main reason is that real estate transactions can get emotional. The Realtor is a buffer between the seller and the buyer. I've sold two houses using a Realtor and both times, the buyer was behaving irrationally toward the end. I was glad to have a Realtor approach them diplomatically.
That's a good point, buyers and sellers get emotional and some people will cut their nose off to spite their face and just cancel the deal or find a loophole to do it. Sometimes it is the principle of the matter but this is a sale and not a lifelong relationship and a good RE agent can talk both sides down from the ledge.
Selling a house is a lot of work. Realtors do a lot of work selling them, so they must be needed. I do think a buying agent is getting more obsolete though in the age of technology. Some people still need them but many don't. Most people who buy new homes don't have agents so why would you to buy a used house when all the data is on redfin/zillow.
From my perspective, realtors do have value but I do see it diminishing as there is greater transparency in buying and selling. Where realtors have the most value:
Unsophisticated buyers, buyers new to an area (relocations particularly), buyers with financial issues; buyers who want confidentiality or limited involvement.
Sellers selling remotely, sellers who do not want to be involved in the process; sellers of properties with flaws or otherwise less desirable.
Realtors have limited value:
Sellers and buyers who are experienced, knowledgable, resourceful and can put the time into marketing and selling/buying; buyers who are knowledgable of location.
I have sold two homes directly and the process went through flawlessly due to the above. I found a broker and paid a small fee for access to the MLS and also used Zillow, used a real estate attorney and title company.
The problem with the present model for sellers not using realtors is that many buyers prefer to go the realtor route as the cost is not transparent to them so they believe they get handholding for "nothing".
When I bought my home(s), I viewed my realtor as my agent (obviously, right?). They were there to serve me and fight for me. Maybe they, in particular, weren't the subject matter expert on a topic, but they'd use their available resources to find an answer or solution. Buying a home is overwhelming, especially when you're already employed. The value add, IMO, is that they helped make the process relatively seamless, or at least as far as I could see. They managed the listing, the showing, the negotiations, the contract signings, etc. He provided me with insights and advice, and sometimes even when it went against his own benefit to do so. Having someone to manage things on the back end and "hold your hand" through some of the tougher times is worth the 3% or whatever fee your agent gets.
Even when I'm not in the market, my realtor continues to follow up with me every few months or so to get a pulse on what's going on. Last month, during one of these outreaches, I explained to him that I lost an important email from my last transaction with some of the closing docs attached. He was able to get it over to me immediately. That, to me, is what your realtor/agent is there for.
Sellers and buyers who are experienced, knowledgeable, resourceful...
are few and far between.
Sellers who are experienced may take advantage of less experienced buyers.
Buyers who are experienced may take advantage of less experienced sellers.
There is no mandate to use a real estate agent. Use one if you would like, or don't.
Make your decision on your personal needs and don't project your wishes onto others.
As far as wanting to make practicing real estate your career, you should take classes in running a business, negotiating, contracts and marketing before you make a decision to condemn an industry.
To both posters quoted & OP, you don't know what you don't know. Sell 15-25 houses a year and then lets talk.
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