Well, it’s time to just say it:
90% of real estate agents are useless. Seriously, utterly useless…or even worse.
As a listing agent, representing sellers, I’m not sure how much I honestly believe the above quote. There certainly is a generous amount of hyperbole to it. The main reason I have my doubts is that I have seen the difference a good realtor can make for their client. Perhaps making a difference for a whole family, and for years to come.
That’s not to say you shouldn’t be careful who you choose to help you.
The worst offenses I’ve seen a lot of recently come from so called “buyer agents” (at least that’s what they call themselves) who offer no value, and worse, actually INHIBIT their clients from achieving their real estate development goals. The majority of buyer agents enroll their clients on some crap auto email program that sends listings, never bother to find out what the client’s real needs and goals are, and then ride in at the 11th hour, like some faux hero, to write an offer on a home that the buyers randomly went to an open house for (possibly giving away all their negotiating leverage to the listing agent). As far as I can tell, the extent of the faux agent’s service is to give the “I just made some free money” stamp of approval on a home they looked at for all of 5 minutes right after shaking their “client’s” hand for the very first time.
Wow…that was cathartic.
The sad, but true story of a Boston buyer agent:
We just had what could only be described as a feeding frenzy at our new listings at 909 Beacon Street. All 6 units for sale gone in five days. All sold at list price or higher and all in highly competitive situations (several received multiple offers) because they were quality units priced at a great value for the buyers. But what is amazing is how many agents failed their clients. Whether it was not getting them in quickly enough (and we were open for 3 hours Thursday, an hour on Sunday, and available for private showings in between) to not being advisers and informing their clients that the units would not last on market, or just flat out being clueless to the realities of the market. There are a lot of upset buyers, who had no chance at the condos they would have loved, simply because they had BAD representation.
The following scene actually played out with me and a “buyer agent” at 909 Beacon. I met the agent the Tuesday after the first open house, at which point 5 of 6 units were under agreement. The agent’s client specifically was interested in a unit that went under agreement Friday (3 days prior). But I met the client and the agent at the property to show them the last remaining unit in case there was some interest in that unit. When we walked in, the agent pounced:
Other agent: I’ve been calling you for days and could not get in. It’s not fair the units my client liked are already gone! (exasperated tone)
Me: That is strange, we are very responsive since we have a showing coordinator at the office who is always accessible to schedule showings. What number did you call?
Other agent: The 781 number…
Me: We do not have a 781 number. We are in Boston so our phone number is a 617 number and my cell is also a 617.
Other agent: No, you do, it’s outside the building on the sign.
Me: It is? Let’s go look at that. (at this point I am a little surprised and nervous we made an error on our sign)
Other agent: See, right there… (pointing to a small sign near the building)
Me: That is a sign that clearly says “Project Financed by Abington Savings Bank”, and that would be their phone number in…I presume, umm, in Abington…
SILENCE (I can only imagine the look on my face at this point)
It’s pathetic. Our correct phone number was on our large for sale sign and it was also prominently listed in the shared MLS database which would have taken this agent all of 17 seconds to look up at any time she chose.
But this is what us 10%’ers deal with day in and day out. This is what TOO MANY of you deal with day in and day out as buyers or sellers. Unfortunately I don’t have a choice what agents I deal with. But you do have a CHOICE!
Caveat Emptor: Your Real Estate Buyer Agent matters. I repeat, your agent MATTERS.
DO YOUR RECON. Hire a GOOD agent, not any agent. The agent matters more than you know. You deserve better.
Now, I would like to acknowledge the 10% of agents out there, sprinkled throughout many firms, who do a top notch job, work their tails off protecting their clients’ interests, add value and bring insight. The problem is they are few and far between. That is what kills me when I see very nice buyers, who are probably smarter than letting themselves get tied to working with a very under-skilled agent, continuing to work with these deadbeat agents.
Don’t get me wrong, buyers agents are vital to a successful purchase. But you have to make sure you hire the right one. Which is not easy. Asking the right questions before you hire one is key.
3 Questions to Ask Before Hiring a Real Estate Buyer Agent
On the listing side, although imperfect, at least there are some tangible metrics like percentage of sale to list price, days on market, and percentage of their listings that actually sell (you’d be surprised by that one) that you can measure agents by. And properly acquiring a listing requires analysis, accurate pricing, presenting and implementing a marketing plan, and eventually selling a unit. But it’s not as easy on the buyer side to select a great buyer agent. What you can and should do, is sit down with a buyer agent and interview them to make sure their service is a good fit for your needs. Here are 3 great questions to get you started with a quality interview (then get 9 more questions to ask):
1. Do you work full time? How many buyers did you represent in transactions the past year?
The only answer to part one is, “Yes. Full Time.” For part two, a good buyer agents should be doing at least 12 buyer representation transactions in the past year.
2. Do you also represent sellers or do you only work with buyers?
You want a buyer agent who specializes in representing buyers. Transactions are too complex and involved to effectively represent both types of clients. There are simply not enough hours in the day if an agent has to . The best buyer agents are part of a team that have specialists who work with sellers, specialists who manage the transactions, specialists who handle marketing, and so on so they have exposure to that side of the market for knowledge and experience, but their time should be devoted to representing buyers.
3. Are you part of a team? Who else will be working with me?
The best buyer agents have the support of a team with excellent structure and organization. Specialists on a team who focus on a single role and do it very well lead to better service for you. Be sure the lines of communication are well established. Your expectations should be set with who will be your main contact point with what other agents on the team that you may interact with, like transaction coordinators, and client care specialists. You want a team with an excellent reputation and demonstrated expertise in the real estate field, someone who has the ability to invest on Vital Developers. That being said, there are a few good “lone wolf ” agents out there, but they are few and far between.
Get 9 more questions to ask a potential buyer agent about communication skills, legal obligations, payment structure, satisfaction guarantees, and more on our downloadable report: 12 Essential Questions to Ask When Evaluating a Buyer Agent
One last thing….if a buyer agent doesn’t ask you to meet with them for an initial consultation before looking at properties. RUN.
