I guess I am confused as to what the exact allure of retaining the services of an agent, where their primary "value add" is that they give you money back at the close of escrow?
As the purchaser of property, wouldn't it be more valuable to work with an agent who was a fabulous negotiator, and obtained a better purchase price, more favorable terms, repairs, etc?
Discount brokers are people too and have overhead and their own personal expenses. My impression is that they must work on a quantity basis, rather than a quality basis, to make ends meet. Personally, I would not want my representation to be based on working with someone whose sole interest was to make sure the transaction closed no matter what, so they could collect their discounted paycheck and move on to the next churn and burn deal. Would you want an agent that opts to take the path of least resistance, and not ask for items that may cause upset in the transaction?
I know, I know...ya'll think Realtors have easy jobs and we aren't worth our commissions. Trust me, if our jobs were that easy, everyone would have a real estate license. Before I was an agent, I was an information hound, and poured through any real estate-related information I could find to satiate my interests. Once I actually obtained my license and went out into the trenches, I discovered this being a Realtor was much more than simply surfing the web and finding property. Almost anyone can dig through listings these days. There are so many nuances to real estate transactions that I could go on forever. No two transactions are alike.
Sure, in any industry there are great and not-so-good practicioners. Interview agents, get referrals from your family and friends, and pick a good one. Who knows, you may find a discount broker who is pretty good...but please don't make your primary selection criteria based on how big of a rebate an agent will give you. That rebate could cost you. ;-)
My feeling is - "I am going to do a better job than the other agents, but I know I have not convinced you, or shown you that I will, so I'll do it cheaper."
Jeanean - I have done the same, usually at the 11th hour to take care of a specific repair or something of that nature. Much different than offering a rebate straight out of the gate.
Todd - Well...when I take a short sale listing or represent a buyer in a short sale, I think that is pretty much to be expected.
Jeff - Interesting scenario. How can you sell a home 300 miles away and still fulfill your fiduciary obligation to your clients? Do you ever see the homes you are selling?
Keith, Dan & Kevin - I think client education as to what Realtors actually do and are responsible for is key.
I know, I know...ya'll think Realtors have easy jobs and we aren't worth our commissions. Trust me, if our jobs were that easy, everyone would have a real estate license.
Everybody DOES have a real estate license, Erin. In California, something like one out of every 50 people have a real estate license. :)
Besides, there has been a huge increase of licenses issued within the past five years. You can tell how long an agent has been licensed by looking at their license number. Those starting with 7 digits are pretty new. Perhaps those are the discounters?
I dunno, Erin. Are you? I didn't think you were. You don't sound like you give away your paycheck. I think you're much brighter than that. :) But I don't know what your license number is. Some people come from backgrounds that actually improve their chances of being a great agent, and yours sounds like it's a good fit. I had the impression you've been in the business for a while. Didn't you work at another company before coming to Lyon?
No I am not a discounter. ;-) My license # is 01706589...I am only in my 2nd year of real estate, and yes before joining Lyon I worked with Paragon Real Estate in Citrus Heights for one year...
I have a high tech sales and marketing background, and I bought my first house at age 19...did several personal transactions before getting licensed...
Cheers! Erin
Oh, I thought you've been in the business for years -- but real-world experience is important, too. It counts as experience and helps pave the way. But, man, Erin, you make me feel old. My license number is less than half of yours: 697006. I got it so long ago that the DRE doesn't keep records that far back, LOL.
Some agents don't put their license number in purchase contracts, though.
Great post Erin,
I recently interviewed a broker and what made the difference for me in not choosing to go with his business model was that he offered a discount program. It's one thing to make concessions on a case by case basis to ensure the best deal for your clients, but it's quite another to advertise yourself as a "discount broker". As far as experience goes, I cannot tell you how many times I've been in conversation with "experienced" agents whose claim to fame is their years in the business and been completely shocked at how little they knew about current laws and how loose they were with their handling of potentially unethical situations. It has occurred to me to offer a discount on occasion and I have. Most of the time, I think my clients respect me more if I stick to my guns and prove to them why I deserve the money I make! Good luck!
This is a very amusing thread. I have enjoyed everyones comments, but the thing to remember is that we don't price set and there is always going to be competition in every business. When I am asked about what I charge and then they compare my percent rate to a discounted broker I usually use a good analogy. Like, "Have you ever bought something for a discounted price, only to get it home and then realize why it was so cheap?", or "Have you ever went to a discounted barber shop or hair salon and regretted it?" "Why then would you do that with the most important investment of your life?"
Any one of these quotes does not directly dis the competition but only points out what could and usually does happen when we try to save money.
That's hilarious Elizabeth! What year were you licensed? I am never scared to discuss the length of time I have had my license...generally people respect me for not embellishing that, and after speaking with me for a while they figure out I generally know what I am talking about. It has cost me obtaining one listing that I know of, but oh well. Sometimes it works to my advantage...I can not be lumped in with all of the "bubble" agents. I also feel fortunate to have jumped in when I did - I certainly could not develop any bad habits!
LOL. I don't think anybody would mistake you for a bubble agent, Erin. But criminy, I hate to tell you when I got my license. Since you asked, it was 1978. Probably before you were born. :) I was a certified escrow officer before that, and before that, a title searcher. I started in this business in 1974. Actually, my very first job was typing title commitment policies in Denver, if you can believe that.
One of the reasons that I'm betting you do well in this business is because you seem committed to learning and you embrace technology. The client who turned down your expertise because of experience was probably short sighted. Their loss. Of course, I'm a little biased, but I firmly believe we have the best training programs at Lyon, so you made the right move. I'm also fond of saying there are agents who may have 20 years in the business, but it's one year times 20. They never learn anything new and repeat old mistakes. Like that TMBG song, many are unsupervised. Although, it makes a good excuse. Why did you do that? Hey, I was unsupervised! :)