Tag Archives: agents

7 Reasons for Real Estate Agents to Blog

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A recent conversation on Tribe got me thinking about my experiences with being a real estate blogger. Here are my seven reasons real estate agents should consider blogging:

  1. Fun. I really enjoy the many conversations that I’ve had with real estate professionals from all over the world that would never had taken place had I not started this blog!
  2. Expertise. By simply writing about real estate and your local community in a public forum (like this!) you become an expert. Anna gets emails and calls from people on a regular basis asking for her opinion on real estate issues. I’m a transportation engineer, but even my opinion on real estate issues holds some weight! For example, someone from my wife’s corporate office recently called to get advice on how to better use technology in real estate.
  3. Trust. A client recently told my wife that he completely trusted her advice because of the honesty in her writing! That’s darn near impossible to get with a regular website.
  4. Knowledge. I follow local news, national news, local blogs, real estate blogs, tech blogs, etc, because I feel a responsibility to my readers. Maybe you won’t feel that internal pressure, but it definitely drives me to ensure that I’m up-to-date on real estate news.
  5. Ranking. Because of all the unique content, we get hits on all kinds of unusual real estate searches. In addition, because we’ve gotten some links from some high-ranked websites (mostly other blogs), her site ranks really well when compared to most real estate sites. Additionally, on typical real estate searches like “Seattle real estate”, we’re ranked very high (#7 on Google) for such a new site and I know that we’re beating out sites that are spending $1000s a year on marketing their site.
  6. Cost. Compared to most marketing techniques that agents are using, blogging might as well be free. I pay $100 a year to host this site. That’s it! The cost of blogging is measured in time, not money!

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  7. Potential. Rain City Guide is not even 10 months old yet. Give us two or three years of blogging, and we’ll easily be the most popular real estate site in Seattle. Ideally, the site will continue to grow as the web technologies evolve and more perspectives are added. I’d love to do more podcasting and videoblogging. I’d love to have someone document the building or remodeling of their home. I’d love to have some more real estate agents blogging about their local areas (Seattle, Bellevue, Redmond, etc. neighborhoods). I’d love to have someone take on some more analytical issues (Tom?). There are so many interesting ways that Rain City Guide can evolve that I feel like we’re only touching the surface of it’s potential.

When I look into my crystal ball to see the future of real estate blogging, I see one or two real estate blogs in each major city that have really captured the local market by having a group of prolific real estate professionals (agents, brokers, lawyers, etc) writing about local issues. I see people turning to these blogs to get unique and personal perspectives on issues like moving, building, buying and listing. I don’t think you’ll be surprised to hear that that is where I plan on taking Rain City Guide!

Discount brokers…

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[photopress:donald_playing_guitar.jpg,thumb,alignright]I had a long discussion with my grandfather this past weekend regarding the utility of full-service realtors. He’s been around quite a while, so I have no intention of dismissing his opinion on anything. Especially considering that he’s been an investor in real estate for most of his life.

He point blank asked me why anyone would use anything other than a discount broker to sell their home. He mentioned that on a typical home sale, they could easily save you a couple thousand dollars in commissions. He mentioned that if he had to sell a house, he would list with a discount broker, price it a little higher than he would be willing to accept and then negotiate to an appropriate price. For him, this strategy comes right out of a Capitalism 101 course that we all learn along the path of life… And then today, CNN mentions a related issue in one of their top stories:

The article discusses how some discount brokers are complaining that they are not getting access to the multiple listing service (MLS). I know nothing about the background of this story, but I do have an opinion on discount brokers.


My take on using a discount broker?
Discount brokers play an important role in keeping full-service real estate agents on their toes and are definitely here to stay. For some people, a discount brokerage makes a lot of sense, and will get them a fair price for their home. However, a typical discount brokerage is not going to provide the value added services that can potentially raise the value of a home substantially. What are you missing out on by using a discount firm?

  • Preparation. Home preparation (including staging, painting, gardening, and other simple improvements) can make an otherwise ordinary house extraordinary. Owners sometimes have a hard time being objective about their belongings, and an experienced real estate agent will make sure that your house house really shines.
  • Marketing. This is where a savvy real estate agent can really earn their commission. A really nice house can only sell itself if the people show up to look! A tech-savvy agent can create brochures, flyers, slideshows, websites, newspaper ads, CDs, etc, that are beyond the capability of the typical home owner.
  • Pricing. My grandfather’s comment about pricing the home a little higher than he would have liked and then negotiating down might not be the best bet in the current market conditions. I’ve found that fast moving houses seem to be selling for the most money and the fastest moving houses are the ones with LOTS of interest. The best way to get a lot of interest is to price the house a little low and let a bidding war begin. While this doesn’t work for every house, and especially houses that are truly remarkable (and therefore only appropriate for a very small subset of buyers), it does seem to be a very successful strategy for most homes in a hot seller’s market as Seattle is currently experiencing.
  • Presentation. Once again, many owners have trouble being objective about their home. When potential buyers visit, an owner is often tempted to tell stories about each room. While the stories might be great, they don’t allow potential buyers to “imagine” themselves in the home. A potential buyer is much more likely to begin imaging how things can be redecorated and personalized if an agent is showing the home.
  • Time. A well prepared, marketed and presented home takes a lot of time, and many owners simply do not have the skill and/or time to do it as well as an agent.

In the end, if you are using an agent who is just rolling through the motions, then you may do just as well to use a discount broker and sell your home yourself. However, if you find an exceptional agent, you will inevitably find that the work that they are doing and their stored up knowledge about the local market conditions will allow your home to sell for substantially more money.

10 Questions for Home Buyers to ask a Real Estate Agent

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I pulled these ten questions from a handout that the national Realtor organization published. There are good questions and, if used by a buyer, they should definitely give you a feel for the quality of the agent. So as not to be above the fray, I’m planning on adding my response to each of these questions as time permits.

1. Are you a full-time professional Realtor? How long have you worked full time in real estate? How long have you been representing buyers? What professional designations do you have?

  • Knowing whether or not your Realtor practices real estate on a full-time basis can give you a piece of the puzzle in foreseeing scheduling conflicts and, overall, his or her commitment to your transaction. As with any profession, the number of years a person has been in the business does not necessarily reflect the level of service you can expect, but it is a good starting point for your discussion. The same issue can apply to professional designations.

2. Do you have a personal assistant, team, or staff to handle different parts of the purchase transaction? What are their names and how will each of them help me in my transaction? How do I communicate with them?

  • It is not uncommon for high real estate sales producers to hire people to work for them or with them. They typically work on a referral basis, and, as their businesses grow, they must be able to deliver the same or higher quality service to more clients.
  • You may want to be clear about who on the team will take part in your transaction, and what role each person will play. You may even want to meet the other team members before you decide to work with the team overall. If you needed help with a certain part of your home purchase, who should you talk to and how would you communicate? If you have a question about fees on your closing statement, who would handle that? Who will show up to your closing? These are just a few of the many important considerations in working with a team.

3. Do you and/or your company each have a website that will provide me with useful information for research, services, and how you work with buyers? Can I have those Web addresses now? And who does the emails? Can I have the email address now?

  • Many homebuyers prefer to search online for homes and home buying information. There are certain privacy and comfort levels that you might appreciate in starting a preliminary search this way, and often it is just a matter of convenience, having 24-hour access to information. By searching the Realtor’s and the company’s Web sites, you will get a clear picture of how much work you would be able to accomplish online, and whether or not that suits your preferences. When I have a question, how quickly do you respond to emails?

4. Will you show me properties from other companies’ listings?

  • Some real estate companies do offer their buyers’ agents a higher commission if they are able to sell “in-house” listings. In such circumstances, there can be added incentive to show you a more limited range of homes than you might consider. If this is the case with your Realtor, you should be very clear on how this will impact your home search, if at all. You also should determine it this affects how much your buyer agents fee will be.

5. Will you represent me or will you represent the seller? May I have that in writing? How will you represent me, and what is the direct benefit of having you represent me?

  • The goal here is to ascertain to whom the Realtor has legal fiduciary obligation, which may vary from state to state or even locale to locale. In the past, Realtors always worked for sellers. Then the listing broker was responsible for paying the agent or sub-agent that brought a suitable buyer for the home. And even though the buyer worked ‘with’ an agent, the agent still represented and owed their fiduciary duty to the seller.
  • An additional situation in some states is dual agency. This is where the buyer decides to have the listing agent prepare the offer for him. A knowledgeable buyer may elect this situation which should be fully disclosed to all parties. In some states it also affects the broker’s/agent’s fiduciary responsibilities to the seller.
  • Although Realtors today almost always have a sense of moral obligation to buyers, this original type of seller agency still exists in certain areas. In other areas, a formal method of buyer representation called Buyer Agency exists to protect buyers. Find out what is available in your area and make yourself comfortable with the extent to which you will be represented.

6. How will you get paid? How are your fees structured? May I have that in writing?

  • This is an issue that can also be related to agency. In many areas, the seller still customarily pays all Realtor commissions through the listing broker. Sometimes, Realtors will have other small fees, such as administrative or special service fees, that are charged to clients, regardless of whether they are buying or selling. Be aware of the big picture before you sign any agreements. Ask for an estimate of buyer costs from any agent you contemplate employing.

7. What distinguishes you from other Realtors? What is your negotiating style and how does it differ from those of other Realtors? What geographic areas to you specialize in?

  • It should be important to know that your Realtor has unique methods of overcoming obstacles and is an effective negotiator on your behalf, but most importantly that your Realtor can advocate for you in the most effective ways.

8. Will you give me names of past clients who will give references for you?

  • Interviewing a Realtor to help you buy a home can be very similar to interviewing someone to work in your office. Contacting a Realtor’s references can be a reliable way for you to understand how he or she works, and whether or not this style is compatible with your own.

9. Do you have a performance guarantee? If I am not satisfied with your performance, can I terminate our Buyer Agency Agreement?

  • Understand that, especially in the heavily regulated world of real estate, it can be increasingly difficult for a Realtor to offer a performance guarantee. Sometimes you may find a Realtor who is willing to guarantee that if you are dissatisfied in any way with their service they will terminate your Buyer Agency Agreement. If your Realtor does not have a performance guarantee available in writing, it is not an indication that he or she is not committed to perform, but rather that he or she is willing to verbally promise some kind of performance standard. In fact, Realtors at Keller Williams Realty understand the importance of win-win business relationships, and that the Realtor does not benefit if the client does not also benefit.

10. How will you keep in contact with me during the buying process, and how often?

  • It’s a good idea for you to set your expectations reasonably in accordance with how your Realtor conducts business. You may be looking for an agent to call, fax, or email you every evening to tell you about properties that meet your criteria which are new on the market. On the other hand, your Realtor may have access to systems that will notify clients of new properties as they come on the market (which could happen several times a day or several times a week). Asking this extra question can help you to reconcile your needs with your Realtor’s systems, which makes for a far more satisfying relationship.