Things Every Real Estate Agent Wishes To Tell Their Client (But Shouldn’t)
Your Home Actually Isn’t Worth That Much
Given the usual perception, most sellers don't actually perform a comprehensive evaluation of their home when establishing their asking price. They see what the neighbor's home is listed for on Zillow, look across the street, and then go back to the two-year old listings in their neighborhood. Once they've put that jumbled data through the filter, they go ahead and act on everything.
On top of that they add a few thousand dollars because of sentimental value and boom, they decide on a price 35% over value. Even as emotions and memories cannot be put on a dollar value, neither can you price a home based on said things.
Yes, You Do Need To Read The Whole Contract. Word. For. Word.
It's a sad reminder, but unfortunately, it is not at all uncommon for our clients to skip over sections of the contract that directly impact their most crucial financial moments.
I have no problem reading them aloud if I believe it will assist them grasp properly what they are getting themselves into. There's no escaping the reality: we, as fiduciaries for our customers, owe it to them to put their interests ahead of our own. To ensure that someone is on top of everything, be inventive and stay determined.
I Can Negotiate Much Better Than You Can, Just Trust Me
When it comes to negotiations, our clients routinely believe that they should be the ones in control of the negotiation.
What buyers and sellers are missing is an accurate view and practical experience. Your professional negotiation skills are absent, your track record of successful transactions is missing, and you don't have any of the tried-and-true techniques that have led to signatures on contracts. I'm not suggesting we shouldn't be open to new ideas or tactics, but I do believe our clients hired us for our experience when it comes to those intensive conversations.
Don’t Call Me At 9:30pm On A Friday
Real estate experts are expected to handle schedules and availability to a great degree. Give it some thought. When your hairstylist doesn't answer the phone at 9:30 p.m. on Friday, no one gets upset. If your client calls and you let it go to voicemail, then their impression is that the world is ending.
OK, we see your point. In certain circumstances, it is absolutely critical that we are always available. It is to the client's advantage to be able to call on us at a moment's notice. But such incidents are so rare, they're nearly unnoticeable.
We are aware that our clients have unrealistically high expectations about our availability. Living your life does not imply you should give up your passions and interests. Having suitable expectations and boundaries set around your time is crucial to your performance.
You Can Be Terminated
Yes, it's true. It is possible to fire clients. When your buyer or seller customer is poisonous, abusive, or lacks integrity, get rid of them!
As a result, many buyers and sellers will end up getting out of the situation with their tails between their legs. For clients who make it a big deal, remind them that they have a listing contract with the brokerage, and not with you. You must check with your broker to see whether your broker can reassign your listing to another agent if you do not want your listing to stay listed with the brokerage.
Don’t Make Any Stupid Financial Desicions
Generally, agents say that financing is the area their clients know least about. The percentage of purchasers who gain pre-approval for a mortgage, but fail to realize they still don't have a mortgage is rather significant. They have a budget to begin their search for a new home.
Changing financial statements throughout the mortgage approval process is the worst thing your buyer client can do. If someone tries to move the debt-to-income ratio needle by engaging in extensive credit card shopping, getting a small personal loan, or even purchasing a vehicle, their mortgage application will be entirely sunk.
We Don’t Make As Much As You Think We Do
When you meet with your customer for an inspection and estimation meeting, either they are using arithmetic in their brain or they are staring at the commission line on their closing statement, they are likely thinking to themselves, “Wait, how much will I be paying you??!!"
Whether you like it or not, every customer knows that even though you can earn a solid income in the real estate sector, their number is nowhere near what ends up in your bank account.
Even in today's fiscally responsible climate, we still must pay brokers to carry our expenses, such as marketing, lead generation, and technology. We must also include items like health insurance and taxes, which our consumers generally aren't concerned about.
Not Everyone Is Ready To Be A Homeowner
It is a tremendous amount of responsibility to be a homeowner. Even homeowners have to maintain their houses, do routine maintenance, and make modifications. In addition to paying mortgage payments, these borrowers will also be liable for taxes, insurance, and utilities in addition to the investment's health.
The plain fact of the issue is, some customers aren't aware of the additional expenses associated with homeownership. Once they find out, they no longer wish to acquire the property.
We’re In A Contract, Don’t Talk To Other Agents
Regardless of the circumstance, we have all been in this position—talking to our client about showing them properties the following weekend, only to have them casually note that their other agent has already arranged appointments.
If two or more agents find they're working for the same customer, it can rapidly become a very complicated situation. In some places, just showing property to a buyer has the effect of giving the buyer an implied agency. In this circumstance, you have a true dilemma on your hands.
The fact is, this will happen someday, and when it does, you'll have to be professional, collaborate with the other agent, and come up with a solution.
You Probably Won’t Purchase Your “Dream Home”
Reality TV shows have conditioned today's real estate consumers to believe that they will locate their ideal property. In fact, we know this won't happen.
We also understand from experience that buying a home is about consistency and compromise.
While our ultimate goal is to locate the client's new house, if they have already stated certain must-haves, we want to locate it for them. You'll never cross off absolutely everything on the list. It is quite unlikely to happen.
You Obviously Need More Cash Than Just A Down Payment
When buying a property, everyone knows it's pricey, but that's the point of the mortgage, isn't it?
It is part of our job as sales agents to recognize there is more to each transaction than the amount of money the bank is paying you. Clients should have some money reserved in order to make a down payment, to have their home inspected, to have their home appraised, and to cover closing costs. Not to mention other charges that can arise throughout the escrow process.
In addition to being wary of where they spend their money, clever agents advise their buyers to also be prepared with an additional 2-4% of their house purchase price in cash reserves to meet out-of-pocket expenses.
Please Don’t Look At Zestimates
I've told numerous clients that their Zestimate estimate is nothing more than a foundation for our conversations about the value of their house. Sellers fail to verify the accuracy of their Zillow app because of the large number displayed on it. Because they are making plans about how much money they believe they will earn by selling their house for Zillow's outlandish and absurd estimated worth, they are too occupied to see how Zillow is changing the way people think about real estate.
A tip for those who understand financial markets: The more volatile the market, the less reliable automated house valuation techniques like Zestimates tend to be. The tools function by doing smaller and more general market studies known as mini comparative market analysis (or CMAs). As markets move at a faster pace, those analytics will be less accurate. Make sure to offer individualized CMAs to both your clients and your prospects. Be open with them about the process, and let them know why your appraisal is correct, and why the others' estimates are inaccurate.
Open Houses Are Technically For My Future Business
Real estate transactions benefit a lot of different parties through open houses. Many customers appreciate this method of researching various houses on their own because of the low-pressure nature of it.
Open houses are popular because they allow you to get ahead of a large number of prospective clients by doing advance promotion, handing out business cards, and collecting leads.
What does that have to do with why sellers choose them? The reason they give the best deals is because they have the best products. Most qualified offers come from home showing prospects who have an agent representing them.
According to our hypothesis, real estate agents hold open houses because they satisfy the client's desire to understand that their agent is doing all possible to sell their property. Visibility, publicness, and an event are characteristics of open houses.
What Did We Miss?
What may we have missed when checking our realtor-client reality? It is something you wish you could help your clients better comprehend. What is one thing you'd like to teach them but they don't know about? Describe your personal in the feeds referencing this blog!