Exhibit A Why We'll Always Need Real Estate Brokerage

By
Real Estate Broker/Owner with J. Philip Faranda (J. Philip R.E. LLC) Westchester County NY

Car wreckThere is a a misinformed minority out there that is of the opinion that the data available on the Internet will eventually render real estate licensees obsolete. 

I disagree for many reasons, and I'll give you one good example: People say some pretty dumb things. 

I'll be the first to admit that I have heard some licensees say silly things. But at least the stupid things I have overheard were said by one agent to another. 

Today, at an open house for a rather upscale home one of my agents was hosting, we had one couple walk through and the wife noticed that the property next door was a multi-family home. She voiced her displeasure, saying that the number of cars in the driveway made it look like a boarding house. I told her we knew it was a two or three family home, and that since it was Sunday that it was likely that they might have visitors. 

Then she shook her head and remarked "this isn't a good neighborhood." Now, bear in mind that were were in a home that was owned by a physician, in a rather affluent suburb of New York, in a beautiful section with a water view on almost an acre. Is she entitled to her opinion? She sure is. Would she be able to maximize her chances of negotiating a good deal for herself on her own with that mouth of hers?

Snowball. Hell. Get the picture?

This is not an isolated case.  Even educated, intelligent professionals have different skill sets than real estate negotiation. I have a degree from Villanova. Ann went to Columbia and has an MBA. Can we fix a transmission? Meh. I'd feel better if a mechanic did it.

The lady today probably found the house on the Internet and one could assert that she didn't need a broker to find the place. I agree. But brokers are far more than data gatekeepers or door openers. We navigate waters that most people have never entered, the world of negotiating 6 and 7-figure transactions with a modicum of skill. And we manage to do so without antagonizing the principals. 

Today's experience was nostalgic for me, as we used to run a company that assisted For Sale By Owners, where we had a front row seat to trainwrecks regularly. We stopped doing that. No regrets. Today reminded me of just how wise we were to end that project. If I want to see a disaster I'll Netflix Godzilla stomping Tokyo and save the agita. 

 

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Lenn Harley 04/30/2012 03:48 AM
  2. Gabe Sanders 05/07/2012 03:48 AM
Topic:
Home Buying
Groups:
Bartender, Make it a Double
Club Chaos
BananaTude
Tags:
negotiation
mistakes

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Rainmaker
602,869
Joy Daniels
Joy Daniels Real Estate Group, Ltd. - Harrisburg, PA

Phil~~  Love this post.  One of my agents is dealing with a seller who is trying to sell on his own.  What a mess...he is asking for 15% down and said if they don't have that much money--then they shouldn't be buying a house....ugh!!!

 

Apr 30, 2012 12:17 PM #32
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Kristin Moran
Owner - RE/MAX Access - KristinMoran@Remax.net - San Antonio, TX
San Antonio,TX - Real Estate - 210-313-7397

One mans trash is another man's treasure! I 198% believe that everyone needs an agent to asist them in their transactions regardless of how many times they have bought/sold.  Stuff changes DAILY.

Apr 30, 2012 12:51 PM #33
Rainmaker
1,286,410
Carla Muss-Jacobs, Principal Broker/Owner
BuyersAgentPortland.com | (503) 810-7192 Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% o... - Portland, OR
Buyer Focused ~ Buyer Results

With this attitude so clearly voiced by the lookie-loo, there's probably nothing that will please.  Maybe that's why they're looking solo?  Ran their agent ragged?  And if people look ONLY at the negatives they aren't really capable of seeing the positives.  We try to get a balance of perspectives, at least I try.

Apr 30, 2012 12:52 PM #34
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Karen Kruschka
RE/MAX Real Estate Connections - Woodbridge, VA
- "My Experience Isn't Expensive - It's PRICELESS"

People became "experts" right after the internet was invented by Al Gore.  I usually ignore stupid comments - they are too opinionated and npt factual

Apr 30, 2012 03:00 PM #35
Rainmaker
541,132
Eric Michael
Remerica Integrity, Realtors®, Northville, MI - Livonia, MI
Metro Detroit Real Estate Professional 734.564.1519

It's both hilarious and pitiful that someone would think that just because there's a few cars at a house that it's a bad neighborhood.

Apr 30, 2012 04:11 PM #36
Rainmaker
409,895
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Phil, 

Very well said.  I am not worried about the future of Realtors.  As many fields it will continue to evolve.  I will just be evolving with it.  The factors that will influence folks continuing to need us are many.  If it was just about crunching numbers and opening doors, we wouldn't be needed, but that's not it.  

While many folks want to save $$, it's ironic that in many cases, that actually costs them a lot more.  

Smart folks have the right folks help them make results happen - in real estate and many other fields.

All the best, Michelle

Apr 30, 2012 05:15 PM #37
Rainmaker
507,280
Jordon Wheeler
The Jordon Wheeler Group - Fairburn, GA
J W Group Real Estate Sales and Service

Hey J Phil,

Thanks for this post.  It's frustrating how many people have a poor regard for the value of the work we do.  Then I end up having to justify my value time and time again.  Real estate professionals facilitate a VERY IMPORTANT part of our basic freedoms - the transfer of property ownership.  That has HUGE VALUE!

Best of success to you this year! 

Apr 30, 2012 06:51 PM #38
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Harry F. D'Elia
Precision Real Estate Inc. - Phoenix, AZ
Investor , Mentor, CSSN, Radio Coach, REOs, ABR

I love when real estate investors say no to me when it comes for assistance-they need someone to guide them.

Apr 30, 2012 07:01 PM #39
Rainer
14,879
Joelle Coughlin
Long Island Flat Fee Realty, LLC - Freeport, NY

I run a company that assists FSBO's on the MLS.  It amazes me how many realtors convince themselves that a fsbo can't do it or how many unethical realtors there are who try to list my client's (FSBO) that are already listed.  Nothing against realtors, I am one. But I know it is not brain surgery.  I worked with many sellers and buyers as a traditional realtor.  However, there are people who can sell on their own, I have many clients who did. 

Some people can't handle selling on their own and those people should use a realtor to help them.  But don't say the world can't go around without a realtor because it does. 

Apr 30, 2012 08:22 PM #40
Rainmaker
977,580
Sharon Alters
Coldwell Banker Vanguard Realty - Fleming Island, FL
Your Fleming Island Relocation Agents.

Phil, I'll bet you could write a book about your train wreck experiences and it would be a best seller!! Can't wait to hear you on Thursday :)

Sharon

Apr 30, 2012 08:44 PM #41
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Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 800-610-7253 DRE01267479 - Costa M

Phil - It's hard to replace the advice, knowledge and experience of a good real estate agent, and it sounds like this woman will find this out the wrong way.

Apr 30, 2012 09:41 PM #42
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Praful Thakkar
Keller Williams Realty - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Phil, the first lesson I teach my buyers is to understand the difference between data and interpretation of the same data i.e. valuable information. If they get it, I am with them and if they don't. they take their data with them - and perhaps hunt for another agent who may be willing to share their compensation with them.

Apr 30, 2012 10:18 PM #43
Rainmaker
850,882
J. Philip Faranda
J. Philip Faranda (J. Philip R.E. LLC) Westchester County NY - Briarcliff Manor, NY
Broker-Owner

Joelle (41), in 2007 I sold over 20 houses worth over $8 million in your back yard on Long Island. You could look it up on Stratus. We sold another 15 or so in Westchester and the surrounding areas through the Flat Fee/FSBO model in addition to over 40 in our regular practice. 

While I agree that there are unethical agents out there and that it is not brain surgery, the results clearly showed that a licensee earns their fee in spades when they broker the transaction. Some fortunate FSBOs might catch lightning in a bottle on occasion, but they are a significant minority. I have blogged about this before. The Good, the Bad, and the Ugly of Taking Flat Fee Listings 

The fact of the matter is that even when transactions close, they did not get the best terms they could have, and the commission saved is a line item and not a true net savings. 

I am not knocking your business model, because there will always be people who want to go that route and it is better for them to get your assistance than someone who takes their 299 and ignores them. But I am saying that many  FSBOs would do better -far better in some cases- with a good broker. 

May 01, 2012 05:44 AM #44
Rainmaker
449,501
Tim Maitski
Atlanta Communities Real Estate Brokerage - Atlanta, GA
The Agent Who Uses "Watermelon Tough" Sign Posts

It's the little things that aren't seen.

I had a seller who just wanted to take the initial offer and be done with it.  I said to counter so that the buyer doesn't think they came in too high. So I got him $6000 more on a $200,000 home.  I earned my keep just by sending over a counter offer.

May 01, 2012 09:23 AM #45
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Jeff Dowler CRS
Solutions Real Estate - Carlsbad, CA
Carlsbad CA Homes for Sale (760) 840-1360

Philip

The scenario reminded me of a favorite TV shows from years ago - "Kids say the Darndest Things" hosted by Bill Cosby.

Seems that buyers, and sellers, do as well. We might laugh, but sometimes it ain't funny, and is even downright scary.

No doubt some folks can navigate buying and selling without an agent. But it's a small percentage and numerous polls and surveys show that consumers still find a qualifed REALTOR of value.

Jeff

May 01, 2012 04:24 PM #46
Rainmaker
794,624
Mike Cooper
Winchester Real Estate Sales, Cornerstone Business Group Inc - Winchester, VA
Your Winchester, VA Real Estate Pro

Well said, J. P.  I'm amazed at how many experts there are cruising the housing market.  Not too many seem to be buying, but they are full of "expert" advice.  

May 02, 2012 04:30 AM #47
Rainmaker
91,725
Kerry Jenkins
Prime Properties - Crestline, CA

I kept seeing this post on your webinar today and had to finish reading it in its entirety. She's clearly not a neighborhood expert and could use your advice. What did you say????

May 03, 2012 12:08 PM #48
Rainmaker
650,565
Richard & Beth Witt
RE/MAX Wittney Estates 516-795-6900 www.longislandrealestatesearch.com - Massapequa, NY
Broker/Owner RE/MAX Wittney Estates Long Island NY

Great post... learned a lot from you today... looking forward to learning more.. Beth

May 03, 2012 03:56 PM #49
Rainmaker
427,635
Phyllis Lerner
William Raveis Legends Realty Group LLC - Tarrytown, NY
William Raveis Legends Realty Group

Hi Phil... great post and to the point... nowadays there is so much information out there on the Web (information  that is at times incorrect, incomplete, or outright false and misleading)... tempting many people to buy and sell real estate without the assistance of a broker... and some (very few) actually pull it off on their own... the majority however realizes very quickly that they are better off with the help of someone that handles this type of transaction on a regular basis... the numbers don't lie in the end... and if it were that simple we, the real estate agents & brokers, wouldn't be around anymore... wouldn't we?!

May 04, 2012 02:27 PM #50
Rainmaker
565,497
Kathy Sheehan
Movement Mortgage 770-634-4021 - Atlanta, GA
Branch Manager

Actually I believe that this problem can be found in more than just the real estate industry.

May 08, 2012 04:50 AM #51
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J. Philip Faranda

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