“The thing to understand about working with a Realtor is that every $10,000 they drop the price of your home only costs them about $150.”
“Research has shown that every time a Realtor sells their home
they get MORE money for it (on average…)”
This tendency can be extremely costly to you.
Because for the Realtor—who will usually do anything to sell your home fast—will no doubt operate differently than if they were selling their own home—because it isn’t going to cost them $10,000 or $15,000 to sell to an early low-ball bidder.
But it may cost you that (or more.)
So what should you look for in a Realtor?
And what are the other ways a Realtor can cost you?
- A Smile and A License Do Not Count as Qualifications. One mistake people make when using a real estate agent to help them find a home is that they often go into it blind. They go with the choice that they “feel good about”. This usually equates to a licensed real estate professional with a nice smile who makes the person feel warm and fuzzy. (You’d be surprised how many people choose a realtor of the opposite sex, in part, based on attractiveness.)
But when it comes to who can SELL your home and get you the most money and do it the fastest…those things just don’t matter.
The smile, good looks and warm fuzzies – none of it matters.
And chances are it will cost you. That smile might mean “I like to please”.
It could mean they like to please others as well like other real estate agents (buyer’s agents) and the buyers.
Sometimes in sales, you have to be tough. Warm and fuzzy does not equal tough.
This is one area where leaning in the direction of the warm and fuzzy feeling could cost you.
- Nice Does Not Equal Innocent. When someone has a nice demeanor, people tend to let their guards down. Whether you’re selling your home or looking to buy a home, letting your guard down in this way can really cost you. Some “nice” real estate “pros” have been known to use that implied trust against you, by only showing you the higher priced listings with the better commissions.
Another trick that has been used: delaying the MLS listing so that the realtor can show the home to their existing “buyer” clients.
That way the realtor can collect both sides of the commission coin. (Commission is usually split between the buyer’s and seller’s agents.)
- That Nice Realtor At The Open House. It may surprise you to hear that an open house is actually not very effective when it comes to actually selling a home. Want to know what open houses are good for? They are an excellent way for a nice realtor to collect leads.
- Nice sometimes means pushover… and that can cost you. A truly nice realtor is often, as we said above, nice to everyone—not just you. They are less likely to fight for a higher or lower price in your favor. Worse yet, they may be lazy and simply prefer a quick
transaction over drawing out and potentially losing the sale.
- Uncle George may be nice, too. Don’t use him as your real estate agent. A lot of people lose a lot of money by choosing less qualified and less experienced friends and family over more qualified/experienced agents they don’t know personally.
Other things you should watch out for include the following:
- “Part time” real estate agents. Part-time sometimes means undedicated and/or unsuccessful. This isn’t always the case. Just beware, and be choosy.
- Free Appraisals. One seemingly underhanded tactic for getting new customers is for a realtor to offer a “free appraisal” to a potential seller or even to a “for sale by owner” seller. The trick? They appraise high, giving you the impression that the high figure is what they’ll be able to get for your home. In one example, the home was “appraised” by the realtor at $120,000, was listed on the market at $112,000, and eventually sold for—drum rolls please—a whopping $84,000.
- Super Producers. Some of the highest producing real estate folks get that way by being picky about the properties they choose to sell. To put it bluntly, they go for the easy ones. If your property isn’t an easy one, you get ignored and/or forgotten.
So what should you do?
You may be wondering what all this means.
Should you avoid a Realtor?
Sometimes a FSBO (For sale by owner) is warranted, other times it is not. You’ve got to think smart and make the right choice for yourself.
What’s the market like for the house you’re selling? Are there buyers likely able and willing to buy in a FSBO deal?
These are just examples of things to consider.
Just remember, the Realtor works for YOU. And imagine if the rolls were reversed?
What if you were trying to buy or sell your home to a Realtor? How do you think the transaction would differ?
Well… if you have experience dealing with people in real estate, you already know the answer.
And, if you don’t… you need to get that experience.
Remember, you are likely buying or selling the BIGGEST INVESTMENT of your life.
So reading a book or two or paying for some expert consultation is probably the best investment you will ever make BEFORE engaging in such a transaction.
Remember, even if a realtor is earning 3% commission, every $10,000.00 they drop your home price only costs them $300.
It’s your money and your home… so do your homework.
A great “NO BS” and “NO HYPE” resource on the subject can be found here:
NOTE: This report was excerpted from the “Real Cash Secrets” home study course.
To receive “13 Real Cash Secrets” free, click here: