“Why Realtors Suck”

Among the population, there are many who simply feel that Realtors “suck.”  Whether this is because of the fees charged or the quality of services rendered or a combination of both is up to debate.  As a Realtor, I can certainly understand this.  From my perspective, I can see many instances and actions where this belief is based on real, actual situations. 

Now, I consider myself a career professional.  I take this business very seriously and though many transactions go smoothly, I know that a real estate transaction by nature is a complex thing and there are many factors that can affect how it goes for the client.

I thought I would call out items I see that should tell homeowners and homebuyers when you should consider a using a new Realtor.

Part-Time or Full-Time?

Overall, I don’t recommend using a part-time Realtor unless that Realtor can compellingly convey that he or she really understands what is happening in our local market and the nuances of buying and selling in it.  The past several years, our local market has seen numerous transitions and rapid changes.  It is these transitions and changes that alter how the tactics and strategies as to selling or buying a home.  As well, foreclosures and short sales with their extensive addenda have complicated the market.  As such, I believe it is too hard for a part-timer to really keep up with the nuances of the market and do well by their client. 

This also gets to the question of, “Why would you use a part-time Realtor who doesn’t focus on the market full-time when you can hire someone who does who is more likely to understand the changes and challenges taking place in the market?”

Things Realtors Do That Give Realtors a Bad Name

They don’t act in the client’s best interest but their own.  If you truly understand the idea of Fiduciary Responsibility, then you will always act in your client’s best interest.  This understanding has to be in the Realtor’s DNA.  I can’t tell you how many times I hear of instances where it didn’t sound like the Realtor was pursuing the best interests of their clients. 

In some sense, this core understanding or lack thereof is at the root of everything else a Realtor does or doesn’t do for their clients.  If the Realtor is professional in their demeanor, practice, and experience, then they very likely understand the importance of Fiduciary Responsibility, and the nature of their conduct witht their client arises out of this.  If they don’t really understand or accept their Fiduciary Responsibility, then you can imagine that the client’s best interests will not be protected or pursued at all times. 

Another aspect of this is the question of whether the Realtor treats your money as if it is their own.  A strong Realtor shows genuine concern for your money and minimizing any costs and exposures to you during the purchasing or selling process.  A weak Realtor puts more of your money at risk for loss and doesn’t work to manage your risk (financial and otherwise) effectively. 

Some Examples That Give People the Wrong or Right Idea About Realtors

• A Listing Realtor for a Chandler short sale property requires that prospective buyers get a Loan Status Report (essentially a preapproval) from the lender they designated in the listing.  LSRs from other lenders are not acceptable.  In this case, that lender representative is related to the owner of the property. 

Though this isn’t illegal and represents a gray area, anything that creates a perception of potential impropriety represents an action that could reflect poorly on the industry.  In addition, though the homeseller may be comfortable with the arrangement, a buyer may perceive this as questionable and should something go wrong with the deal, may embroil all parties in some type of civil action.  Given that, is it in the Seller’s best interest that they be involved in this type of arrangement?  I don’t believe so. 

• A Listing Realtor for a Chandler home calls the buyer’s lender to inquire about the buyer’s LSR.  They state to the mortgage person that the bank that owns the property requires additional information on the Buyer such as their credit score, what is the maximum amount they are approved for, what their debt-to-equity ratio is, and other personal credit information.  The lender refuses to provide this and the buyer only provides his credit score later.  The refusal to provide this did not affect the buyer’s ability to purchase the property. 

In a later conversation with the broker, it was explained that the Listing Realtor used to be in law enforcement and figures that if they ask and the lender provides, they will use this information to the seller’s advantage.  The lender never anywhere explicitly called for this information to be provided.  So, ‘in the name of the bank,’ the Listing Realtor was really working to glean sensitive, private information on the buyer to potentially use against them in negotiations.  A misrepresentation. 

• A property is listed for over $2,000,000 (a Scottsdale luxury home).  There is only 1 picture to cover the entire property.  As such, the lack of pictures means that many buyers and Realtors will not give the home consideration and so the listing will likely see less traffic and showings and probably not capture the best possible price for the home.  Whether the home is $200,000 or $2,000,000, photos tell the most about a home.  It is critical to have them and costly for the home seller when they aren’t in the listing.    
• A short sale listing agent does not communicate with the buyer’s agent in terms of status updates for the property.  As a result, the seller’s agent is surprised when the buyer retracts their offer to purchase later, costing the seller valuable time.  Simple communication and updates would have kept the buyer in play longer as the buyer would have believed that work was being done to get the contract approved by lenders for eventual sale. 
• A Realtor’s spouse is also the buyer’s mortgage broker.  During the purchase process, the buyer’s financing begins to unravel.  Despite repeated calls and email communications from the listing Realtor, the buyer’s Realtor does not call or respond about the situation for their client to the listing Realtor.  The mortgage broker becomes the ‘de facto’ representative for the buyer and despite assurances on the buyer’s ability to get financing, the entire deal falls apart based on their lack of approval.  The seller is injured in this process as valuable time has been lost to sell their home.

What to Look for in Your Realtor When Selling Your Home

• Is the listing information accurate and grammatically correct?  Is anything ommitted?  If your Realtor gets information wrong or makes spelling errors, then you should think twice here as to what else they may miss later on.
• How many photos of the property are there?  If there is only 1 photo, your listing is likely Dead in the Water.  Realtors and buyers don’t like to go see properties first-hand without photos of the property to see online first.  There are very FEW instances where a home shouldn’t be in pictures and with 99.9% certainty, yours isn’t it.  No photos = fewer showings.
• Are the photos sharp?  If they don’t look very good to you, they won’t to a buyer.  Why aren’t they coming back to take more photos?  Did they get a virtual tour as well?  I don’t believe the latter is a requirement but it can be helpful to convey the property to prospective buyers.
• Are they getting feedback from other Realtors who come through the property?  If not, they are missing out on potentially telling information.
• Are they giving you periodic updates on how the market is changing, about comparable sales activity, and any recommendations on what to do next?
• Did they give you a copy of the Comparable Market Analysis?  If not, why not?  And if they didn’t how did they make a determination as to the value to list your home at?
• Do they communicate with you regularly to check in and give you updates?  If your Realtor doesn’t communicate, you won’t know if they are doing a great job for you which they probably aren’t if there is nothing to contact you about.
• Do they get answers to all your questions?
• Does the Realtor exude integrity?

What to Look for in Your Realtor When Buying a Home

• Does your Realtor send you listings automatically based on your requirements?  Doing so means that the Realtor is not filtering listings based on some unknown criteria such as the exclusion of short sales (unless the buyer requests this) or commissions. 
• Does your Realtor seem focused on getting you the right home or getting you a home at the right time?  If your Realtor seems rushed to get you into a property that really doesn’t feel right to you, then they aren’t pursuing your best interest.
• Does the Realtor perform a Comparable Market Analysis or similar review to give you an idea as to the value of the property that you are submitting an offer for?  Do they let you have a copy of this analysis?
• Does the Realtor communicate with the listing Realtor to potentially glean valuable information that may be useful for negotiations such as are there any other offers, what those offers look like, etc.?
• Is your Realtor following up with the Listing Realtor to check on the status of your offer?
• Are they fully answering all your questions as to the process of buying a home?
• Are they fully answering your questions with respect to a specific property?  It is critical that any questions or concerns you have with respect to a particular property be addressed - not just most questions but all questions.
• Does the Realtor exude integrity? 

Interview Your Realtors

Simply put, you should interview more than one Realtor when buying or selling a home.  Ask plenty of questions and trust your gut instinct about whether the Realtor will truly act in your best interests.  You are going to pay a lot of money for the services of a Realtor.   As such, make sure to get someone who is worth every cent of that money.

There Are Realtors That Shine–Seek Them Out and Choose Them

There simply is a class of Realtors in the marketplace that are entirely worth your time and money.  They take the client and the client’s interests very seriously.  They absolutely work to protect and advance your interests and bring prestige and respect to the industry.  And they are career professionals.

As such, buyers and sellers should work harder to seek these Realtors out and choose them to help them. 

Buying or selling a home is a large and expensive transaction.  It entirely makes sense that you pick someone who understands that at all times.

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Tagged as: chandler home, chandler short sale, scottsdale luxury home, why realtors suck