Why are Realtors a Toxic word?
Real Estate Agent · Anderson, SC · Member since 2008 · 11 posts · 0 votes
Ok, here is a question I know that many of you would love to answer. But, here is the deal...
Why are Realtors such a bad thing, and is there anyway I can turn the tide? Can I become the exception to the rule?
What are some of the things investors hate about Realtors?
What could a Realtor such as me do to help change the perception?
What can I do to provide a valuable service to the investment community?
Thank you for your time,
Blaine Wimberly
[I told him whatever he negotiated for me between my actual price and list, I'd give him a bonus of 50% of the spread. Gives him an incentive to actually try to negotiate a good price for me]
That's creative. I hope it works out for you.
I would have to say that MOST not All of them dont get it what we do, even after I explain it to them. They also seem to have control issues. They just dont seem to understand that doing business with me will make them more money in the long run as I am not just buying 1 property, I am buying several. There are a few out there that are ok to work with.
Having been a Realtor in good standing let me add my two cents.
1) As previously mentioned by Dave very little education requirments.
2) I think it is a matter of ethics many people (not just Realtors) are lacking in this area.
3) A lack of vision when dealing with investors (multipal deals)
4) Instant gradification with a closing.
5) A mentality that they will kill a deal rather than drop their comm. I used to list investment props on a 10% comm. & yes investors worked with me because I provided the services & ability to negotiate to support that but, never would I let my comm stop a deal from closing. There have been a couple deals that I waived my comm. (got more deals from that than any form of advertising)
6) Often times people use their friend or family member always a bad idea.
7) Realtors over price homes to get listings then work down the sellers over time (bad business).
8) General Arrogance many fancy themselves better than their clients.
9) It is a career of sales smooth talking silver tunged schisters will say anything to close a deal.
I always tell people what they need to hear not what they want to hear (always better)
10) The idea that realtors don't realy earn their comm. couple phone calls couple sigatures thousands of dollars (often more than most working folks make in a month)
I'll have to come back to this thread.
I red flag everyone that works for commission.
Why?
Afraid someone will lie to you to get paid?
A W2 employee would never do that (note the sarcasm)
Another investor would never do something like that either (more sarcasm).
Amen to that TAZ
Everyone derserves a profit as long as the profit is earned from value given, not BS
I'm sure there are good agents out there, but I lost a lot of trust in agents when I purchased my personal home in 2006. My wife and I looked at over 20 homes without making an offer, When we finally found what we wanted, we happend to be going out of town that day, so we made an offer 10% under asking price through our buyers agent and then left. They countered with there asking price, so I offered 5% under ap. They countered again at full asking price, and thats what we ended up paying.
Come to find out our BUYERS AGENT was doing everything short of actually telling the sellers not to accept anything less than asking because we would pay it!
I find this out from the seller at the closing table and I probably wouldn't have closed accept I really did want the house.
I know its a generalization but I lost a lot of respect for the Realtors code of ETHICS at that point.
I think the animosity between Realtors and Investors comes down to two things:
First: I believe that there are a lot of first time investors out there who haven't quite gotten the whole thing figured out, but in their excitement waste a lot of time with Realtors.
I believe that Realtors become particularly wary when they get the feeling that the people the are showing all of these houses to may or may not have any of their own money to put into a deal, and quickly come to the conclusion that all creative real estate is bunk.
Second; I believe that most Realtors don't take the time to understand what creative techniques are out there. There are of course exceptions to this.
The unfortunate part to this is that the Realtors who refuse to learn or even just accept alternative financing techniques are missing out commissions from people who do deals on a consistent basis.
In my own experience, It is harder to negotiate with a seller when I have to go through a Listing Agent and possibly a Buyers Agent before the seller gets my message. That is an awful lot of interference for my message to go through.
Realtors tend to be hesitant to let me talk directly with sellers ( although I force this issue all the time), it seems because they are afraid that the seller and I will make the deal without them and cut them out.
The main exception I have had to this experience is a Realtor I know named Ed http://realestategozone.wordpress.com/2009/01/20/what-a-real-estate-agent-needs-to-do-to-sell-to-me/ who has stepped aside on may occasions to let me try to make something happen.
Animosity? I have no animosity with Realtors. You either help me make money or I don't deal with you. But I have no animosity toward stupid people.
There is a paradigm shift occurring and smart Realtors will prosper.
As for the NAR, they might want to watch the unfolding plight of the UAW and other once-monopolistic unions.