Real estate is a viciously competitive business in Austin. How do you choose your REALTOR®? How do you choose any professional?
After my recent post “We Are the Real Estate Experts, Aren’t We?” you may argue that large, national chain brokerages may be better because they have the resources and the budgets for agent raining and education. And while I think that these Brokerages are a great place for new agents to start for that reason, if you are serious about buying or selling a home or investment property in Austin, chose a boutique real estate company.
Why? Let the new agents get their start with one of the big guys. They often have in-house training, which is truly needed to get these agents competent enough in their careers after relaxed education requirements by the Texas Real Estate Commission (TREC). And many great agents emerge from the big guys — into small, boutique-style companies with a focus on customer service. The rest are eaten up by the business, and pursue a better-fitting career.
Quality vs. Quantity
Do you want the agent you hire to be focused on quality or quantity? The big companies play the old-fashioned, used-car-salesman numbers game. No wonder REALTORS® are getting the Used Car Salesman reputation, huh? The instruct agents to go after every listing, no matter the quality of the clients and the property. If you have 10 listings and 5 drop out, you still have 5 listings! This is why you receive post cards all the time from agents with the big companies, especially if your listing expires in MLS.
Although some small Austin brokerages still focus on quantity, most focus on quality. Quality listings, quality clients, take 3 clients, have 3 happy clients who make it to closing with smiles on their faces. Shouldn’t quality over quantity matter when you’re hiring someone to guide you through such am important time in your life?
Do you want to be a number or a person?
Although I sometimes want to shop quietly and anonymously, be it at the mall or for real estate, I still want the customer service when it counts. I want the answers and I want them when I need them. I want guidance and I want it when I need it. What will I get that with a frazzled agent shuffling 10 listings and 15 buyer-clients (with 8 over-priced listings, 5 don’t show well, 9 haven’t heard from her in weeks, and all 15 buyers are represented without pre-qualification and a buyer’s rep agreement)? I doubt she’ll answer when I call, how can she? I doubt she’ll have the answer and will have to get back with me. Why am I paying her again?
I won’t take a number, I’ll move on to the next guy. I don’t want to waste time, effort, and money. I want to get it done and get it done now. That’s why I recommend a small company — a Boutique Brokerage — headed by a great Owner/Broker who has a vast amount of knowledge and experience. Don’t take a number, be number 1. Hire someone who will earn their money by giving you guidance and advice every step of the way, even before you asked the question. Hire a REALTOR® who will take the time to be your friend, because trust me as someone who moves a lot, a friend is what everyone needs when they are moving!
Naturally, I recommend BridgeOne Properties headed by Michelle Cain. Yes, she got her start with one of the big companies. She used everything she learned by being successful with the big guys to create a company supportive of both its agents and its clients. BridgeOne is Austin’s Boutique Real Estate Company… We don’t sell an exceptional number of properties, just exceptional ones.
I know that I have a pretty strong mix of consumers and Realtors® reading this blog and this is an issue that really matters to both. What is the value of a Realtor®, what are the basic levels of experience you expect, and should standards be raised? I read a blog for agents several times a week called Agent Genius and today a blogger, Benn Rosales, posted “Ending Right to Practice” which brings up an argument that I have touched on in the past but is very important. There are over 8,000 Realtors® under the Austin Board of Realtors®. Keep in mind that Williamson County has its own board, although some are members of both. 8,000 Realtors® in Austin, not counting those licensed real estate agents who are not members. No wonder we all receive so many post cards and emails!
The perception of value of Realtors® is not good right now. There are plenty of really good Realtors in town. And there are just as many under-qualified, under-trained Realtors and real estate agents. This makes my job so much harder! I work my tail off using the experience that I’ve gained through a lifetime in the real estate industry. I honestly don’t know how hard it is to learn this business, but some are suited for it and some are not. I hope that these “turbulent times” help to weed out those who are in it for the joy of the job and those who heard there is money to be made in real estate.
What should the requirements be? In Texas, those seeking a real estate license must complete a few hundred classroom hours of courses followed by 15 classroom hours each year. Those seeking Broker’s licenses must be an agent for two years and complete an additional load of courses. I won’t bore you with everything here, visit TREC’s Education section if you’d like to know more. Is more education needed? I did not find the courses difficult and completed my initial hours in two months. I had the advantage of a strong background in real estate and found that many of the items covered are not practically used and that I felt I needed more transaction-specific education. I found this with the Texas Association of Realtors® GRI Courses. Still, nothing beats good old-fashioned experience! Many, many agents don’t pass the licensing exam the first time. You’d be amazed at how many don’t! I’m proud to say that I aced it, but again, I had experience before education so I was at an advantage.
I find that all of the odd transactions find me. I mean that seriously. When I take a simple listing, I get complicated offers. When I take a complicated listing, contracts don’t often lead to a closing the first time. Luckily, I have the support of my experience and my Broker’s encyclopedia of experience and knowledge (thanks, Michelle!). Without the support of my Broker, I wouldn’t be nearly as successful. All of these new brokerages around town can be scary. I was in class with a girl younger than myself (and I consider myself a youngin’) at the tail end of getting her broker’s license who already had part ownership in a brand new brokerage with other new brokers. Scary! Who do the agents call when they have a funny item on a contract?
Agents need more education! And more practical education! Brokers need more experience. The two-year time limit wouldn’t bother me if the Broker-to-Be had closed 40 transactions, but there is no transaction requirement currently.
What are your feelings? I’d love to hear more on both the agent and consumer side. We are the experts, aren’t we?
From the National Association of Realtors® Housing Market Facts Website (http://housingmarketfacts.com/). I was reminded of this site after seeing another TV commercial by NAR as a part of their public awareness campaign.
Real Estate as a Long-Term Investment
If they are not giving you all the facts, YES! A big part of the concept of our industry is cooperation. If I have a seller, I want to cooperate with an agent with a buyer for my seller’s property since most buyers are represented. Likewise, if I represent a buyer, I need the cooperation of the seller’s agent. I represent my client’s best interests, and the other agent should be representing his or her client’s best interests, but I still find that many are really only after their own interests. So what’s the point?
You should hire a Realtor® to represent you and your best interest using their expertise in the real estate industry and in real estate transactions. Sure, you call buy or sell a house yourself, but Realtor®s are here because most people don’t have the time or energy to invest in learning how to market or search for properties, writing and negotiating contracts, how escrow works, how to do a title search, researching market trends. It seriously is a great time and energy commitment. Since most people have day jobs, hiring a Realtor® is generally worth it since their knowledge typically brings you 17% more for the sale of your house (easily offsetting their fee).
So what’s up with the market these days? A Real Estate Agent’s job just got a whole lot tougher. Everyone and their mamma wanted to buy, sell, flip and invest in 2005 & 2006 so when national news hit that we are in a slump coupled with this election year, naturally things in the real estate market slowed. Those of us in the industry are battling misconceptions from national news (Austin still has a strong economy with a growth rate of at least 4%/year), fears of paying too much, buyers waiting for exactly the right moment to try to get the best deal, and now other Realtor®s who are not cooperating.
If your Realtor® isn’t giving you all of the information including what to expect from each step in a transaction, RUN, don’t walk to interview other agents to find one with the knowledge you need to stay ahead of the game. The real estate agents of the 90’s are a dying race now that over 80% of homebuyers start their search online. We are not the only ones with the information now that the internet is around. What we do have is experience of transaction after transaction and creativity from working in this industry day in and day out. Your Realtor® should really be a tougher, stronger negotiating, more experienced in real estate transactions version of yourself. If you’re a technology lover, hire a technology-loving Realtor® (that’s me). If you are everyone’s best friend, hire a Realtor® that’s everyone’s best friend (not me).
Just DON’T hire someone who will leave you high and dry, liable to a law suit, and without getting the best deal. As predominately a seller’s agent, I am always looking for the cooperation of a buyer’s agent to bring me qualified buyers. That means buyers who are a) actually committed to a home purchase, b) financially qualified to buy the home they are looking at, and c) trusting enough of their agent to let them see the transaction through.
So don’t hire an agent just because they are your cousin’s best friend’s boyfriend or your mother’s boss’s daughter. Hire them because they are the real estate expert version of yourself, someone you can trust, and someone with all the answers.
These are tough times in the Real Estate Industry, but I believe in survival of the fittest. This is where I need the help of you, the consumer. Don’t hire that bad agent and they will find a job that they are more suited for. Otherwise, you are wasting your own time and the time of all of those who are working hard to make these transactions happen. Find a good, honest agent and all real estate transactions will run more smoothly with better informed consumers making better deals.
My sellers deserve the best, and I will continue to advise them against screwy offers that will tie up their property, hopes, and time — and only when they are motivated to sell. My buyers deserve the best, and I will only show them properties they are qualified to buy when they are ready to buy.
If you hated your last real estate transaction, don’t give me the opportunity to say “I told you so” next time! And I know some of you will know who I’m taking about.
Calling Austin Realtor®s!
I found a great new resource while reading the Agent Genius blog called RealBird. This great new listing marketing service has innovative features including yellow pages, a listing publisher, and my favorite, a map-based MLS system. There are many great widgets that integrate with other sites including Active Rain.
Sign up and be sure to request that the Austin MLS is added so we can have this great service cover Austin!
ariakristen@gmail.com
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