Experienced Brokers are worth their weight in goldSep 16 '00 (Updated Jan 22 '01) Write an essay on this topic.
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The Bottom Line Deal directly with the Broker/Owner of a real estate agency and not one of his/her sales agents. It's an almost sure fire guarantee to receive a high level of service.
As a real estate broker, M.B.A. with 25 years of experience and hard knocks in the business, the one most important single statement that I can offer the public is: "Ads don't sell real estate, people do". As a result, the process of retaining an agent to represent your interests in the real estate jungle is crucial. First, if at all possible, procure the services of a Broker/Owner, not a sales agent, for the simple fact that the former has total control over the overall marketing mix, important connections in the legal and financial communities, usually a lot more experience and lastly can make or break a deal by having the authority to negotiate his/her fee on the spot. Second, just picking an agent or agency to represent your interests solely by the level of advertising, i.e., national, regional or local is not a good idea, nor is the practice of choosing a firm by listing with the company that has the greatest number of signs in your neighborhood. In reality, you may just end up listing your property with a "listing mill" with the sole management objective of playing the odds of selling your property within an allotted time period. Such organizations typically instruct their agents to list as much inventory as humanly possible, at any price. In addition, you'll generally find that such entities place a huge volume of high profile ads in the hope that enough inventory will sell to make a profit. In general, the above "shotgun method" of real estate marketing generally results in two out of three active listings ending up with expired listing terms. In short, the one out of three properties that do sell most likely will occur as a result of a price reduction initiated by the seller as a result of being worn down by 3 - 4 months of gut grinding market time during the typical six month listing term. Third, don't be overly concerned about the percentage or dollar fee that your broker requests on his/her initial listing contract for the simple reason that if you are dealing directly with the broker as I have suggested above, any deviation from the list price should be considered an offer, therefore, EVERYTHING is negotiable, and if you do get your price, BRAVO, you got what you wanted and your broker earned his/her fee! Fourth, always remember that buyers and sellers are both at opposite extremes and PRICE ALWAYS SELLS REAL ESTATE. If your listing price is out of line with the market, no style or volume of marketing or salesmanship will sell your property!!! The objective of the buyer is to purchase your property for as little as possible and not pay a real estate commission. Conversely, your intention as the seller is to market your property for as much as possible without paying a real estate commission. In the end, the job of an experienced broker is to negotiate an equitable transaction between both factions inclusive of his/her fee. Fifth, the listing term with your broker should always be at least 180 days for the simple fact that your listing agency will require at least a month just to get your attractively priced listing published in local homes magazines and newspapers, enter your listing in the M.L.S., install real estate signs/lockbox, enter the property on various internet sites and line up QUALIFIED prospects for showing. In the event that your Realtor does procure an interested prospect, the next step will involve an intense period of negotiations pertaining to the contractual sale of your property. Hopefully, your purchaser will then be able to secure a mortgage within 45 days of entering into the contract. Finally, the title work must be ordered and reviewed by the lender, the deed properly executed and the closing arranged. In the event that title problems or financial snags are encountered, which is more or less the rule rather than the exception, then, you may in most cases tack on a few more weeks! Transfer of possession can also be a very emotional, gut wrenching and complex procedure for both buyer and seller which is best left to be negotiated by your intermediary, i.e., Broker. In summary, a good real estate Broker is worth his/her weight in gold! The real estate business is a very tough way to go with no net to catch you if you fall off of the high wire. In general, most new agents last only a few months in the business, i.e., turnover is extremely high. For this reason, if you happen to get lucky enough to hook up with a good, highly experienced broker with a list of credentials which may in most cases include a college degree and possibly a graduate level education, consider yourself very lucky to retain his/her services. Always keep in mind that your main focus as a seller of real estate should never be on the amount of real estate commission that you potentially could pay in the event that your property does sell, but, instead keep your focus on the level and quality of service provided and the profit you'll gain from your association with your Broker. In conclusion, you will be the greatest benefactor of the efforts of your Broker and as a result of your good fortune, always make an effort to recommend his/her services to your friends, family and work associates so that they may benefit accordingly.  |
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