As we enter this new era of real estate, we are seeing a lot happen, from iBuyers (buying and selling homes through technology) to Zillow buying homes to “flip” with the intention of gaining customers for their mortgage platform. But where does that leave the Real Estate Agent? Are they needed? Will they just slowly drift into the abyss as other technologies take over?
The answer is unlikely, although you can argue the role of the agent needs to change. Let’s start with the basics. As seen in many ads and the various marketing ploys seen around, some agents give off the impression that they are more of a “used car salesmen” than what they should be: consultants.
As one of my repeat investor clients told me, “I’m surprised that Real Estate Agents aren’t treated in a higher regard like an attorney. There are so many legal documents and strategies that need to be known. Each transaction has at least 100 pages of disclosures and reports.” I couldn’t agree more.
Let’s start with the first part of his statement. Your Realtor® needs to know and understand the forms, disclosures, and reports. So much can be overlooked, misinterpreted, or worse, misrepresented. Furthermore, a good agent will know how to utilize the forms. Checking (or not checking) a specific box can mean all the difference, whether it is releasing all your contingencies (meaning your deposit is now at risk) to moving in and appliances missing.
The second is the strategy. Every transaction is different and negotiating in a residential real estate deal is different than negotiating a car, at the flea market, or with your kids. If you don’t have the experience on how to get your offer accepted, or even what price to list your home for, they could be potentially leaving money on the table. Take the example of buying our home, which I wrote about, titled How We Beat Out 17 Offers. To take a step further, once under contract, we negotiated the price down over $40,000, getting us back to what we initially offered. These skills are developed over time and was unique to this situation.
So, looking into 2020, the image of the agent does need to change. The resources, skills, and understanding are going to be more prevalent going forward. Especially if inventory remains as low as it has been and with a handful of new laws coming into effect. If Realtors® don’t keep up, they will disappear.
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