A Great Listing Realtor® is Worth Their Weight in Gold

By
Real Estate Broker/Owner with Island Style Realty Inc. RB-19250

I regularly hear stories of people who regret their decision when selecting their agent to list their home for sale. 

 

Here are two of the most common categories I run into.

1)      They picked the agent who offered a discount or flat fee and were told they would get the same full service as other agents in the area, to only find later that was not what they got.

2)      They went with the agent who offered to list their home at a higher price.

 

I was speaking to a home seller after they fired their agent who gave what they called “full service” at a flat fee.  This was their idea of full service:

·         They gave the homeowner a sign to put in their yard.

·         The homeowner did their own open houses, no agent present.

·         All showing requests were made directly to the seller.

·         The real estate agent performed no negotiating or explaining of offers.  The buyers were to send all offers to the seller directly.

·         At closing no real estate agent was present to explain documents or to review the HUD-1 settlement statement.

 

From her story, the best I could determine that the listing agent did was:

·         Loan her a sign.

·         Run a couple of ads in the newspaper

·         Place her home in the MLS system and their company website

·         Collect a fee, if sold.  I have heard other companies charge a fee whether it sells or not.

 

So how much did she save?  In this case nothing.  She lost a lot of time and carrying costs, while she was unsuccessful selling her home.  In the best case scenario she would have saved some money, but nothing close to advertised.

1)      She still would have paid the buyer’s agent, so the only savings would be for the seller’s agent, which was not that much.

2)      She would have had to pay a professional to explain all contracts to her.

3)      She had no experience selling a home, so would have been at an extreme disadvantage against a professional buyer’s agent in any negotiation or the managing of the transaction.

 

In the second scenario, what I call buying the listing.  The homeowner went with the agent who agreed to list their home for the highest price.  This happens regularly.  Weak or inexperienced agents offer to list the home for more than market value, to get the listing.  Once they have the listing they use it to meet potential buyers.  After a period of time they try to get the seller to lower the price, in many cases even lower than the top agents in the area would have sold it for.  Again as in the first scenario, the homeowner comes up short.

In both cases the seller may come out ahead if the stars line up.  In both case it rarely happens.  In both cases, the seller is more likely to have complications or failure.  If they do sell, they are more likely to take longer and get less for their home.

During these times of changing markets and tough economy, it is critical for homeowners to get the best Realtor® they can find to protect their interests.

 

When finding a good listing agent, look for the following:

1)      That they are a member of your local Board of Realtors®

2)      A track record in your neighborhood.  If they are a good agent in another town, does not mean they know your town.

3)      That they are full time and full service.  Nothing worse than a part time agent who:

a.       Is not available to take calls from potential buyers or agents and not available to show your home.

b.      Do not handle enough transactions annually to be able to professionally manage your transaction and know the laws and rules.

c.       Do not have a working relationship with the top Realtors® in the area.

4)      They have designations, higher licenses.

a.       Have learned the business and have credentials to prove it.  Look for the CRS designation.  The average CRS agent is in the top 3 or 4% in the industry.  Look for other designations and a broker’s license.  All indicators they have spent the time and money to advance their training and career.  In other words are they a professional?

5)      Look for industry awards.  The top producers and those with the best reputations will have awards from the industry.

6)      Check their marketing.  You will be hiring them to market your home.  See how well they market themselves and the other homes they are selling.

7)      Interview them.  Look for someone who is looking out for your interest and has made it clear that that know your property, your needs and the market.

 

Stayed tuned for finding a great property manager.

 

Posted by

 

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Randy L. Prothero, REALTOR®

Principal Broker, ABR, AHWD, CRS, e-PRO, GRI, MRP, SFR

Island Style Realty Inc.

Team Leader - "The Prothero Group"

Randy Prothero is well established as an expert in working with military / VA clients and first time home buyers.  His home seller's (listing) campaign is one of the most aggressive marketing programs in the area.

Based out of Mililani, Hawaii. Randy services the island of Oahu (Honolulu County) Performs mediations and ombudsman services for the Board of Realtors.  To improve overall professionalism in his area Randy also offers classes for real estate agents. 

www.HawaiiRandy.comOahu (Honolulu County) Property Search  Hawaii Military Relocations

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Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. Ciara Brennan 05/21/2012 12:15 PM
  2. Brenda Mayette 05/21/2012 01:57 PM
  3. Charles Stallions 06/09/2012 08:42 PM
Topic:
Home Selling
Location:
Hawaii Honolulu County
Groups:
Learn to be a Top Producing Listing Agent
POSITIVE ATTITUDE for the Weary Soul
Century 21 Network
Realtors®
Hawaii Real Estate Professionals
Tags:
broker
crs
hawaii
realtor
real estate lisings

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Rainmaker
201,642
Shannon Lefevre
John R. Wood Properties - Naples, FL
Shannon Lefevre, PA Your Naples Smart Girl

I think it's funny when a seller says, "well agent x offered to do the listing for X"...did they tell you about the top secret bonus?  She lists alot of properties for nothing...her stats show she sells only about half of what she lists... LOL

May 21, 2012 03:11 PM #11
Rainmaker
1,797,021
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

It has been proven that on average a home sells faster and quicker using a GOOD realtor than a quick service agent, and or selling by owner. 

May 21, 2012 03:54 PM #12
Ambassador
1,277,353
Erica Ramus
Erica Ramus - Ramus Realty Group - Pottsville, PA - Pottsville, PA
MRE, Schuylkill County PA Real Estate

You get what you pay for. Period.

An unrepresented seller should call an attorney.

May 21, 2012 04:49 PM #13
Rainmaker
453,987
Gay E. Rosen
Houlihan Lawrence - Larchmont, NY
Honest, Hardworking and always Professional!

Randy -  it always bothers me when people think the agent who offers the highest listing price is THE best agent.. not so.. I am not a slick talker  but I always speak from the heart... I always feel sorry for the sellers who get taken in..

May 21, 2012 04:50 PM #14
Rainmaker
623,209
Randy Prothero
Island Style Realty Inc. - Mililani, HI
Hawaii REALTOR, (808) 384-5645

Shannon - I have heard the comment several times, about what another agent is willing to list it for like it is an auction.  The highest price wins the listing that will never sell.

William - I have a theory that some folks needs to fail at least once before they figure it out.

Erica - Even the attorney is not always the solution.  I spoke to a buyer who purchased from a for sale by owner that they had an attorney draw up the documents.  A year and a half later they are still trying to sort out the mess.  The attorney understood the documents, but not how to manage a transaction.  Many issues with the home went undetected.

Gay - There will always be those who look for someone to tell them what they want to hear instead of what they need to hear.

May 21, 2012 05:18 PM #15
Ambassador
2,433,500
Patricia Kennedy
Evers & Company Real Estate, Inc. - Washington, DC
For Your Home in the Capital

Really great advice, Randy!  And bottom line, sellers pretty much get what they pay for.

May 21, 2012 06:38 PM #16
Rainer
64,646
Michelle Seidelman
Staged To Sell - Portland, OR

 I can't believe an agent would have the buyer send the offers directly to the seller @_@' and never explain anything. Talk about not even doing the bare minimum of your job. Great post!

May 21, 2012 07:16 PM #17
Rainmaker
570,046
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Evening Randy,  The real cost would have been the significantly lower sales price !

May 21, 2012 07:39 PM #19
Rainmaker
399,303
Gina Tufano
Ask Gina & Company with Keller Williams Realty Loudoun Gateway - Sterling, VA
Ask Gina & Company, Northern Virginia Real Estate

Agreed! Knowing the reasons people pick another Realtor, I try and show them the whole package by starting with if you list with me, on average, past sellers received xx more in money than listing with an average agent. And then show them how I bring in a stager and a professional photographer who both make their home more presentable to buyers. My goal is to take all the work that I can away from the sellers and let the home sell itself. Works (almost) every time! Best of luck to you in Hawaii!

May 21, 2012 08:07 PM #20
Rainmaker
623,209
Randy Prothero
Island Style Realty Inc. - Mililani, HI
Hawaii REALTOR, (808) 384-5645

Patricia - Not always.  Many times they pay, but don't get what they thought they paid for.

Michelle - In that case they advertised full service at a reduced price.  It was not my idea of full service.

Bill - Or moire days on the market or both.

Gina - If I had a home to sell in your area, I would hire you.

May 21, 2012 08:24 PM #21
Ambassador
1,260,008
Tammie White
Benchmark Realty, LLC (615) 495-0752 or www.TWRealtyGroup.net - Franklin, TN
Franklin TN, South of Nashville

I listed a home that was with a flat fee agent for 229 days (basically it was a FSBO). I listed in Friday and Sunday night we were under contract.

May 21, 2012 09:18 PM #22
Ambassador
1,576,699
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 800-610-7253 DRE01267479 - Costa M
Randy - You've given sellers a lot of good food for thought when looking for a listing agent.
May 21, 2012 09:34 PM #23
Rainmaker
623,209
Randy Prothero
Island Style Realty Inc. - Mililani, HI
Hawaii REALTOR, (808) 384-5645

Tammie - Congratulations!

Christine - It is always their choice, but hopefully I gave them a few things to consider.

May 22, 2012 01:18 AM #24
Rainmaker
399,705
Kathryn Acciari
RE/MAX Professional Associates, with offices in Sturbridge, Charlton, Auburn, Spencer, and Shrewsbury - Sturbridge, MA
Realtor - CDPE, CIAS, Sturbridge MA Real Estate

It nearly always comes down to dough. The seller wants to keep every dime and cannot see past the big dollar signs promised by such agents. Shame.

May 22, 2012 04:14 AM #25
Rainmaker
409,903
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Kevin, 

Excellent point.  The savings might have actually COST the seller.  They may not have, but in a lot more cases then folks would like I bet they do. 

I've never understood the buying a listing concept, I mean, why would an agent want signs with no results.  To me that's about the agent, NOT about the client!  Hey, if you want an agent out to look like they have the most listings, great.  

All the best, Michelle

May 22, 2012 06:44 AM #26
Rainmaker
623,209
Randy Prothero
Island Style Realty Inc. - Mililani, HI
Hawaii REALTOR, (808) 384-5645

Katheryn - Many times they have friends and neighbors telling them that their house is worth more adding to the problem.

Michelle- Some agents use it to get buyers and others feel they can get the price down later if the can grab the listing at any price.  Both are not very professional.

May 22, 2012 08:30 AM #27
Rainmaker
166,332
Stephanie Arnett
Coldwell Banker SRE ~ Starkville, MS - Starkville, MS
SRS, IMSD, Broker Associate, REALTOR

Great post!!

May 23, 2012 12:29 PM #28
Rainmaker
623,209
Randy Prothero
Island Style Realty Inc. - Mililani, HI
Hawaii REALTOR, (808) 384-5645

Steph - Thank you!

May 24, 2012 12:03 AM #29
Rainmaker
153,567
James A. Browning
Browning Real Estate School/REO Institute - International, INT
MRE REOCertified(R) SSCertified

Thank you for sharing your blog; we need Real estate Professionals to share their comments and information regarding their markets and experiences. Thanks again from beautiful Colorado

Jun 01, 2012 07:52 AM #31
Rainmaker
623,209
Randy Prothero
Island Style Realty Inc. - Mililani, HI
Hawaii REALTOR, (808) 384-5645

James - Thank you

Jun 01, 2012 09:02 AM #32
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Rainmaker
623,209

Randy Prothero

Hawaii REALTOR, (808) 384-5645
Ask me for a free valuation of your Oahu Home.
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