Jonathan Burton wrote in the Wall Street Journal Market Watch on April 2, 2014, that there are Ten Things Real Estate agents won’t tell you. Not a whole lot of breaking news here so I thought it might be fun to break down, and either refute or agree with Mr. Burton.
You can Google Jonathan Burton for the whole article.
Mr. Burton’s Top Ten List:
1. I’m Using Your House to Sell Myself.
I’m not sure if I understand Mr. Burton here when he says,”Some Agents See Only the ME in the HOME!” OK, there are plenty of over-inflated egos practicing real estate. Many of which you can see on cable television. But why would someone waste their time and money pumping up their ego when they could be making a sale?
2. You Might Never Get the Chance to Buy Your Dream House!
Yes, if you do not have adequate resources or a good credit score you may have trouble competing in today’s real estate market. Any real estate agent not properly preparing you for what lies ahead is not helping you. Also, the market has recovered to where we’re starting to see Pocket Listings unofficially come onto the market. Mr. Burton sees this as a threat to prospective buyers since there does not appear to be a level playing field, and to some degree Mr. Burton is right. This is why working with a local professional can makes all the difference!
3. Our Commissions Aren’t Set in Stone
If Mr. Burton were to review the California Association of Realtors’ listing agreement he’d see that this is spelled out in the listing agreement. Historically the standard residential commission has been 6 percent – which is typically split between the two brokers (unless the broker has both sides of the sale which oftentimes is called “Double Ending” ). Then if the agent is not the broker, that side of the commission is split again. Also, there are “Discount Brokers” that will list your house for a smaller commission. Lots, acreage and commercial properties may also have different commission ranges.
4. Your Home Isn’t Worth As Much As You Think
Here Mr. Burton may have some insight. Some agents will tell you whatever they think you’d like to hear your house is worth to get the listing. Then wait for the seller to drop the price to what the market will pay. That’s no way to list a home for sale. Pricing it as close to the threshold of what it eventually sells for – when you first list the property – will get you the best price for your property. That would take an ethical realtor that knows what they’re doing.
5. Young Buyers Don’t Want Your Old House
Mr.Burton explains that young buyers don’t want to do a lot of work and repairs. Who does? Unless of course, you’re willing to pay less for something you can add value to. Generalizing what young buyers wants is at best curious, and humorous. In fact, I think Mr. Burton is way off the mark without going into recent surveys about what young buyers are really looking for. In the end, it’s all about price.
6. Another Agent Can Get You More Money
Mr.Burton suggests you should choose a successful local real estate agent with a good track record. Duh!
7. I Don’t Know Anything About This Neighborhood You’re Interest In
Avoid picking a realtor from online advertising platforms like Trulia and Zillow. Agents who pay for leads may not work in the areas you’re interested in but will be happy to try. And, the reply to 6 above is the best methodology.
8. I Can Win A Bidding War
Mr. Burton suggests if the real estate market you’re interested in is experiencing “Multiple Offers” you need a local real estate agent that’s been around the block and will ask their client for their absolute highest bid so there’s no confusion in the fog of a bidding war. And, once again, the reply to 6 is appropriate here too! This is getting redundant!
9. I Might Be Fired Soon
Mr.Burton suggests that some agents are hanging by a thread, and their next deal could make it sink or swim for their real estate career. Mr. Burton wants you to consider how this could affect your working with this kind of real estate agent. What the ….? Has the Realtor suicide rate gone up recently? Am I missing something here? When did this become a problem?
10. I’d Like To Dump You As A Client
Mr.Burton suggests that since Realtors work on commission they don’t want to waste their time with “looky lous,” and other tire kickers. Sometimes real estate agents will dump their clients onto another real estate agent. OK, that’s true, and Mr. Burton is like maybe One or Two for Ten here on insightful things your real estate agent won’t tell you, but if Mr. Burton were my client I’d…
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