What Makes A Good Realtor ® Part 2

Dated: 02/28/2016

Views: 248

Good question, and one that has no specifically correct answer. A better way to ask it would be, What makes a Realtor a good match for me?

Lets be honest, there are a ton of Real Estate Agents out there and picking the right one can be difficult. There are a ton of articles and even books on the subject, but I think it all boils down to a few core items.

Trust, Competency, and Relationship

In this second blog we are going to examine Competency.

Is your Realtor competent? We are going to assume that all licensed Real Estate Agents have the basic skill set needed to perform the functions of Real Estate, or they would not have received their license. We covered this type of assumption in the first part of this blog series, so I will let that lie. We will not go into the details of what the specific skills are either. That information can be found in any number of Real Estate books. Instead we will look at competency versus basic ability in general and how it relates to finding the right Realtor for your needs.

Many people confuse the ability to perform the basic functions of a job with competency in the position. This is easily dismissed by watching your local server at work the next time you go out to dinner. Can he or she speak well enough to be understood, and hear what customers are asking for well enough to write it down? Can he or she walk and carry at least one plate of food without falling down or dropping the plate, well at least most of the time? Great, they have the basic skill set to be a server! Competency then becomes a little harder to define. Can they order your items correctly and ensure the correct items come out of the kitchen and get to your table in a timely manner? Good start. Can they carry 3 plates at a time? 4 plates? Even 5, thereby speeding up the process of you eating your desired meal? Hey, now we are onto something! Did they catch the chip in your wineglass BEFORE it got to the table? Can they handle 3 tables at a time? 4? 7? Now we are talking about competency!

Enough food and wine talk or I may just get up and leave this blog for another day.

Real Estate competency in many cases depends on the needs of the consumer. Lets examine a few of the situations that often cause competency issues for people looking to Buy, Sell, Rent, or Lease property here in South Florida.

Are you looking for a property in Miami, Florida? If yes, I would not be a competent Realtor to help you, even though I am a very good one. Why not, you may ask? I would not be a competent Realtor to find you a home in Miami because I DON’T WORK IN MIAMI. There, I said it, and unlike many agents here in Palm Beach County, I mean it. Agents going outside of their geographical area of experience to chase a deal is one of the most fundamental and often occurring problems that consumers and Real Estate professionals have with many Real Estate Agents. Many agents here in Palm Beach County would be happy to help you find a home in Miami, as long as there is enough money in it for them. It happens all the time. Now I suppose I could reason with myself that I too could be a competent agent in Miami. I mean, I go to Miami at least twice a year. I used to be down there 3 or 4 times a week. I am a competent Realtor in all other aspects. Why should I not be the one help you find that million dollar dream home in Miami? $30k + in commission for me makes it worth driving to Miami a few times. Hell yeah, I am your man! No, no, no, wait. What am I thinking? I could end up like one of those idiot Miami Agents that I hate because I go out of my way to show them one of my listings in Wellington only to find out that their client does not like, and is in fact afraid of, HORSES! I do not want to be that guy. I also happen to have a very solid Real Estate agent that I have sent referrals to for several years in Miami. He knows the local market down there as well as I know the one here, and would be able to service the client in a far superior manner than I could. Why would I not hesitate to refer that $30k or more in commission dollars to another agent when so many others would not, you may be wondering? Because I know the agent will find the client the right property, in an expedient amount of time, resulting in a happy client. Happy clients lead to future business, maybe for me or maybe for my guy in Miami, or maybe both. I also know that the agent will refer clients he runs across to me if they are looking buy, sell, rent, or lease in the Palm Beach County area, resulting in future earnings for me and more return referrals to him. Finally, he is going to give me a % of his commission on the current deal by way of a referral fee anyway. In summary, referring a client that is looking for a home in Miami to a competent agent that WORKS IN MIAMI, makes me a competent agent. Ta da!

I guess I got a little carried away with that one so I will just add one more example and try to make it brief.

REO properties. I am competent in Buying and Selling bank owned properties. I feel comfortable making that statement because I have bought and sold many REO properties. I currently represent OCWEN as a listing agent, and multiple investors that purchase REO properties regularly as a buyers agent. I have helped to purchase both Homepath and Homesteps properties for a variety of buyers, including first time buyers. If an agent is not at least competent in REO transactions, they will get eaten alive. I will tell you now, as a fact, that many local Real Estate Agents are not competent in this arena but still market themselves as such. Brokers know that REO properties are still a large segment of our market here is Palm Beach County, and they want a cut of it. Because of this they train their agents to aggressively pursue buyers and sellers in this segment. They have great scripts to tell them what to say and they have lots of colorful marketing material to dazzle even the most shy eyed target. Let’s say that an agent has SOLD you on their ability to get the job done for you. Three weeks later you have put in offers on 7 different REO properties and have nothing to show for it. Is this a competency problem? Could be, maybe not, but probably is. It is likely that you stood no chance to get at least half of them to start with, and a fairly good chance the agent did not structure the offer in the correct manner to give you a shot at the others. The agent you are working with is gaining competency as you work together, that is for sure. I will tell you that I gained competency through putting in hundreds of offers. I got my first REO listing because the listing agent representing the bank literally retired during the 8 month negotiation period. The bank liked my professionalism throughout the transaction so much they transferred it to me. Yikes, 8 months? It happens, did your agent tell you that? Maybe I better do a REO specific blog before we carried away again. Anyway, I can tell you that I run into the same common core of 30 or so agents that do the majority of the REO work in Palm Beach County. Those 30 are very competent. Out of the almost 10,000 agents in Palm Beach County, I am sure there are at least a few more that can help you with REO purchases in a competent manner. Not as many as you would think however.

In part 3 we will examine Relationship. It is not what you are thinking, I guarantee it.

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