Selling yourself or using a rep?
So you’ve made the decision to unload one of your investment properties. What next? Try to sell yourself, since you know you have mad salesmanship skills – or, hire a Realtor to market your building. Let me let you in on a not-so-little secret: Realtors comprise quite a monopoly in the Unites States. While you think real estate is much more egalitarian these days, what with easy access to oodles of data from the likes of Realtor.com, Zillow and Trulia, to name just a few sites where real estate information is right at your fingertips, think again.
Sellers of real property in the U.S. who use no representation make up a tiny fraction of the property selling marketplace. And while you may be able to access tons of data quickly, easily, and at zero cost – beware. The information you’re receiving is rarely totally accurate, and most importantly, you’re missing the choicest data – information only Realtors can access. On top of that, if you try to sell yourself, the system is rigged so that Realtors will not show your property to prospective buyers, and you’ll be missing out on most of the buying public…
The Multiple Listing Service
Ultimately, the only way for you to have your property exposed to the full local marketplace of buyers, is to employ the services of a sales rep, namely, your own real estate agent. However, the reality of this monopolized rigged system, is that the commission paid to Realtors is more than made up for by an increased sales price, due to the increase in demand created by the Realtor system of access to properties: namely every local Multiple Listing Service (MLS) in the country, which lists every Realtor-represented property on the market at any given time.
What a Realtor does
A Realtor definition is an agent that represents a seller (or a buyer) in a real estate transaction. They are trying to obtain the best price and terms for the property they represent. This is also known as a fiduciary trust. In effect, as an agent, they owe allegiance to their seller (or buyer). (A buyer’s agent looks to obtain the best deal for his buyer. And the opposite is true for a seller’s agent.) All Realtors are licensed by their respective state that they work in.
Real estate broker vs agent
The difference between a real estate broker and an agent is simple: a higher level of state-sponsored real estate education requirements is completed by the broker compared with a real estate agent. Thus, to obtain a real estate broker’s license, more training hours are required on a greater breadth of real estate related material than is required for a real estate agent. Regardless, either is known as a Realtor, and each has the same requirements of fiduciary responsibility to a seller or a buyer.
How to choose a Realtor
The choice of your Realtor to represent you is a key one before marketing your property. Interview several Realtors, and ask them to generate a Comparative Market Analysis (CMA) for you. The CMA will show several comparable properties that have sold recently in your area, and the Realtor will come up with a market valuation of your property based on the selling prices on these comparable properties. Do not choose your Realtor strictly on which one supplies you with the highest market value for your property! (An asinine trick some unscrupulous Realtors use is to overinflate the market value of your property in hopes of “winning” you as their agent. )
Use logic when choosing your Realtor. Make sure the comparables he/she used are truly similar to your property. If one valuation is so much higher than all the others, be very suspect. These bad eggs like to “control the listing,” and, once they have you signed up with them, will eventually get you to knock your price down as time goes on without a sale. Again – stay away from these devious Realtors! They give Realtors in general a very bad reputation.
Utilizing common sense
In addition, look for the Realtor that uses the most common sense, and can talk to you easily – and straight. You’ll want a sales rep that will be in constant contact with you – and one that knows how to re-orient the marketing of your property as showings of it go on, and feedback is retrieved. A good Realtor knows how to break blunt news about how the buying public is seeing your property to their seller in a very frank way.
photos courtesy of denalipm.com, stjoerealtor.com, ericksonsdrying.com