How To Avoid The Exorbitant Cost Of Your Real Estate Agent's Bad Advice
Consumers should fear the potential of bad advice from their real estate agent.
With homes now valued several hundred thousand dollars and higher, the cost of this bad advice can be staggering.
You won't see it coming, as the advice will often pass the common-sense test, but when all the dust settles, you'll find yourself with a hole in your wallet.
Whether you are selling a home, buying a home, or both, you may be getting ready to lose a lot of money if you follow the advice of your real estate agent. Why?
Because the majority of real estate agents are not trained and are not prepared for the critical situations that will present during the purchase and sale of a home.
Rest assured, the choice you make when choosing your real estate agent will be more important than any other decision you face when you next decide to move.
Bad Advice Is Common From Real Estate Agents
If there were ever an industry from which you should require second opinions, it would be the real estate brokerage industry. 95% of these high-turnover practitioners have little experience and no training, yet they advise on more than a third of all home sales in the US.
The majority of those in this group are not evil people trying to harm you, rather it's a group of people who just don't know what they are doing. If you hire a real estate agent without doing your due diligence, then you are likely to be gravely disappointed.
Example Of Common Bad Real Estate Advice
I spoke with two separate homeowners this week about selling their home.
Both had been listed previously with at least one real estate agent and both indicated that their real estate agents had given them advice on what they should do to sell their home.
Each time the homeowner was advised to spend significant amounts of money on modifying the home to get it sold.
While it is true that today's buyer wants "shiny and new," it is very rare that a seller will correctly anticipate exactly what buyers will like, thus much of their improvements will be wasted.
Buyers are spending far below cost for existing homes, so why in the world would you want to spend a dollar for improvements that will (hopefully) net you seventy cents?
Sure, there are some things you should consider doing to prepare your home for sale, but nine times out of ten, a price reduction in an amount equal to what you would spend on the improvements will be more beneficial in producing a buyer for your home.
The Real Deal With Part-Time Real Estate Agents
The image on the right is a screen capture of a text communication our office received from a real estate agent (apparently a part-time real estate agent) in the early afternoon.
I believe you should find it offensive for at least two reasons.
First, if you have hired this real estate agent to help you, clearly you are not a high priority. The call that we made to the agent (which concerned YOU) will have to wait until later. What if the issue was time sensitive? What if a slow response will lose you a buyer (or a home)?
Why on earth would you work with a part-time agent when you can hire a full-time, well-trained, Realtor? For the same fee?
Secondly, as Florida resident tax paying citizens, shouldn't we be angry that this person is "working" on real estate during the business day when the State of Florida is paying her a salary to do a different job?
Apparently, both of her employers should fire her.
How To Avoid Bad Advice
Most people (70%) hire the first agent with whom they speak.
So if you are like most people, the first person who tells you what you want to hear will be your real estate agent.
Does this sound like a smart way to do business?
The way to avoid bad advice from real estate agent's is to hand-pick your agent from among the best in the business. It's not even hard to do.
Take the time to research online to find agents worth interviewing for the job of selling your home (and/or contracting to buy a home). Ask tough questions, and demand references.
You should be able to "google" your real estate agent and find hundreds of 5-star reviews online, thus ensuring they have the experience and the history of delivering great advice.