Blog :: 04-2017

QUESTION: My best friend just got her real estate license. Should I list with her?

handshakeI read somewhere that the average person is friends with 5 real estate agents. If that’s true, the good news is you'll have 5 people you know and trust who can help you buy or sell your house. The bad news is you can really only work with one of them.

The other bad news is that most newbies don't last very long in the business. The attrition rate is high, with 87% dropping out in the first 5 years. And of the agents currently working, most of the real estate “business” that you see around you (an estimated 80%) is being conducted by the top 20% of the agents in the area.

Listing with a friend can be a high-pressured situation, especially if he or she is new to the business. Of course, you want to help them but the truth is, they are learning the ropes on your largest financial asset – and that’s something you need to be aware of going in. Because an agent’s “education” can hit a seller in their wallet.

We’ve all gotten the call from someone we adore: “Hey, I just got my real estate license!” But it’s still wise to ask ourselves: Of the 5 real estate agents you may know, who's still learning on the job? Who's getting ready to drop out because it just isn’t as easy as it looks? Who's in the 80 percent, struggling to put together a few deals a year?  Who's selling real estate only on weekends and after their day job on Tuesdays?

I can tell you from my 13 years experience and over 200 homes I’ve sold, the more you’ve “seen” in real estate deals, the better equipped you are to service your clients. Contact me to learn more about what I can do for you whether you're buying or selling. 

Your Questions Answered: What's the Deal with "Teams"?

People often ask me to explain how “teams” work in real estate agencies, and what it means for them as clients. The short answer is, it depends what kind of team it is.

“Small Teams”
Many agents discover that, while they may be great at educating clients about homes and negotiating deals, they are not as well-suited to the administrative work. So once they become established enough, they quickly hire an assistant to take on non-sales tasks. This is great for the agent, freeing her up to do more face-to-face client work. And it’s great for the client, because the support person is usually very detail- and deadline-oriented. This arrangement is technically a “Small Team”, however it’s usually not referred to as a “team” at all because even though there may be several people working on the client’s behalf, there is only one “public-facing” agent.  

“Named Teams”
Named Teams are typically bigger and advertise themselves as a "team." This structure is often comprised of an experienced lead agent (whose name is in the "team name"), one or more less experienced “buyer’s agents,” and an administrative assistant. Sometimes the lead agent will handle mostly sellers and the newer agents may handle mostly buyers, especially those looking in lower price ranges.

The newer agents are provided prospective buyers and mentorship from the lead agent and in exchange, any clients they bring to the “team” become the “property” of the lead agent. As a buyer or seller, this type of team may or may not be beneficial to you – it largely depends on the experience level of the specific agents handling your business and the ability of the lead agent to oversee the quality of the team’s work.

“Family Teams”
This might be a husband and wife team, a mother-son team, or a man and his nephews. The implication is: we’re family, so we’re close and work well together. Sometimes that’s true. But these “teams” can often form because a successful agent is trying to help out a loved one who’s in transition (unemployed, new to the area, etc.). And in those cases, a client isn’t always getting someone who’s fully committed to this very service-oriented business.

Pros and Cons
There are definite advantages in working with a team. Namely, that people are usually doing the jobs they are best suited for. The main disadvantage is the confusion around not having a “single” person accountable for your business. Who do you go to with a problem? The administrator? The lead agent (whom you may never have met)? The person showing you around?

In my opinion, the agent/client relationship is more important than who or how many are on a “team.” If you’re looking to buy, look for an agent who can educate you about every aspect of the process: the market climate, the town, the neighborhoods, renovations and remodeling, and the context in which to determine the value of your purchase.

If you’re looking to sell, seek out an agent who is knowledgeable about the town’s real estate culture, is an experienced marketer and pricing strategist and one who can also guide you through the difficult process of getting your house ready for market.

And, if on top of all that, you find an agent who understands a perspective that can add even more value to your purchase or sale – say, the walkability perspective – well, that person may be your MVP. :)