YourDreamSheet.com - Confessions of a Realtor Article

Confessions of a Real Estate Agent

By Kate Morgenstern, Aol job finder

“I’m a realtor because I wanted to be my own boss. I don’t have to work for someone else or have someone dictating my hours. My bank account is like, ‘I need to make some money,’ so I work more, but I work because I want to,” says Sara (not her real name), a 10-year veteran real estate agent. "At some point in their lives, almost all Americans will buy or sell real estate. That’s what I think about every time I meet a person. Real estate marks the biggest investment decision of their lives, yet people run out and pick the first realtor they come across. It’s a big mistake. Huge," Sara says.

Sara tells me that what people don’t realize is your relationship with your realtor is a crucial matter, because settling for the wrong agent can cost you a great deal of money and heartache. She points to a popular practice amongst deceitful realtors.

The Heist: “Pocketing” Your Listing

Sara explained when a person decides to sell her home, her realtor enters the home listing into a database that all realtors share called the Multiple Listing Service (MLS). The MLS benefits the seller by widely advertising her home and ups the chances the seller gets multiple offers. The seller’s realtor will then split the commission with the buyer’s realtor.

A deceitful real estate agent will try to "pocket" his seller’s home listing. He will stick a sign in the yard and avoid entering the home's listing into the MLS. He’ll take calls from buyers directly, but not from realtors. That way, the shady agent can avoid splitting the commission with a buyer’s realtor.

This shady agent might spin this method to the seller by giving her a one or two percent discount on his commission. However, it’s possible the seller could have gotten another five percent or more on the sale price had the home been advertised far and wide. Sara points out that it deeply hurts the sellers who fall victim to this tactic. However, she says that real estate agents aside, usually sellers are their own worst enemy.

Earth to Sellers:

Lose the ‘Tude!

Sara reveals that the majority of sellers are nearly impossible to please. “When I’m working for a seller, I want to sell that home for the most money possible in a respectable time frame, but they are rarely overjoyed no matter what you do. If you sell the home on day one, they assume you priced it too low. If you don’t sell right away, they think you aren’t doing anything. They will never be thrilled with a sale unless you get them significantly more money than they expected. This rarely happens, and can only happen in a really hot market,” she says

Much of the dissatisfaction comes from a seller’s inflated expectations surrounding her home’s value. Sara continues, "Almost every seller thinks her house is worth more than it is. A hard part of the job is convincing a seller the purple wallpaper in the living doesn't work for everyone. Buyers, on the other hand, tend to be grateful, happy, excited. They jump for joy when they get into the house and they think you’re wonderful. I adore working with buyers.”

The best thing a seller can do for himself is adjust his attitude. Sara says, “You do the best job for people you care about. There are people who will sap all your energy and you’re never good enough. It’s best to let them go, because you will do a far better job for the people who do respect your time. And if you are tangled up with a demanding customer, your other customers can suffer.”

Trust is Vital

On the flip side, if a seller is uncomfortable with his realtor, he should seek out a new one. Sara says, “You are working towards a common goal; the relationship shouldn’t feel conflicting. When a seller is combative and ignores my advice, he should choose a realtor that makes him feel more confident. If we’re not on the same side with trust, and he doesn’t understand that we both want the best outcome, it becomes a problem.”

Sara recommends sellers take the time to interview several realtors. She says, “Sometimes you might feel the relationship is just okay, but you don’t have the warm and fuzzies.” She advises not to settle in this instance. “It benefits both of us when I really connect with my seller. You should get referrals and feel absolutely positive this realtor will represent your best interests. You will spend several months, sometimes a year working with this person. It pays to take a week or two to find the right agent before signing an agreement.”

She adds, “I like when people are interviewing; 90% of the time, they pick me because they do their research and it’s not luck of the draw. They feel I will be the best realtor for them.”

What Else Does She Like?
“I like the creative marketing side – I like to convince consumers that I’m the best. I ask myself, ‘If I were the consumer, what would I need to feel confident that I’ve found a good realtor?’ When I was looking to renovate my own home, I met a contractor who gave me a list of every single kitchen he had done over the years. It was a fat booklet. I didn’t call any of the phone numbers he gave me, because the booklet impressed me enough and I chose him. So I’ve done the same thing for my own marketing. I have listed every deal I’ve ever closed.”

Sara says a lot of people think realtors only ram a sign in the ground and make a brochure, and it’s not worth the commission the seller pays. She counters, “It’s all about building a family and making connections for people. Some might say you should never mix business with pleasure, but if someone is your friend, you will do a better job for them than a stranger. Some of those people you meet as clients first, and then you add them to your client database -- or as I like to call it, my ‘friendship database.’ I am always growing my friendship database.”

Here’s What She Loves

Sara gushes, “I love that I work out of my home. I have no commute. I can get up in the morning and make breakfast and return emails instead of driving to an office. I can multitask throughout the day. I can fold laundry while I’m on the phone. I also like to show houses, because it’s fun to see what other people are doing with their homes and how they are decorating.”

Make it Your Own

Sara also appreciates that she can personalize her business to fit her own idea of success. “I love that there is no glass ceiling. There is nothing standing in the way of how successful you want to be. If you want to be the best realtor in town, there is no one stopping you. If you want to be a niche player, maybe you want to do two or three sales per month and work closely with people and be the most personable realtor, you can do that too. There are so many different ways you can work the business.”

Sara says you can also choose a specialty. Realtors can specialize in:

Condominiums

Town homes

Retirement housing

Historic homes

Vacation homes

Oceanfront property

Farms

Rural land and homes

Commercial properties

Specific geographical areas

Value Beyond the Business

“Real estate is half sales and half psychology. I get to learn how people think,” Sara says. She says it can help her with her own real estate investments. “Witnessing how people buy and sell real estate is very valuable, because when it comes time for you to do it yourself, you will know what people will think when they walk into your home and how they will negotiate with you.”

"I like negotiating. It’s a fun aspect because you can see how far you can push without offending. It's a fine line and you don’t always know what they are thinking, so it’s fun to see what you can get away with and keep everyone happy in the meantime."

Hello, Opportunity Calling

Sara says, “I like to call real estate a business in a box. It’s very easy to get into. It doesn’t take much to get a license. Then you have all these real estate firms with programs to get you trained and started. The opportunity is there for anyone who is willing to work hard. It’s a great industry if you’re self motivated and disciplined. I have no problem with self motivating, and that personality trait makes me very successful.”

The Rewards Are Great

Sara says, "For the first two or three years, you really pay your dues and you don’t make much money, unless you’re in a hot market. People know you’re inexperienced and green. They want someone who is very knowledgeable and immersed in the business. Once you develop your client base and get more knowledge, you learn the ins and outs of the area, and it becomes more rewarding. People come to you for market expertise. Your friends are your clients and your clients become your friends."

Sara says the business is very personal to her. “It’s never just a sale. When I look at someone, I know this person will want to buy and sell real estate at some point in their lives. I want them to think of me because they know I am good at what I do. When I have a client, it’s never a short term thing. I can spend months and months with a buyer, and then they decide to rent.”

She recognizes that those months were not wasted. "I have learned more about the market during that time. I have become closer to that person, and they will refer me to their friends."

And some day, that person may decide the time is right to buy a home. With some luck and a little research, hopefully he will choose to become Sara’s client again.