Comments on: Theory of the Starving Real Estate Agent http://thefrontsteps.com/2007/10/18/theory-of-the-starving-real-estate-agent/ San Francisco Real Estate Blog with a Twist and some Flavor Fri, 25 Jul 2008 15:05:50 +0000 http://wordpress.org/?v=MU By: james http://thefrontsteps.com/2007/10/18/theory-of-the-starving-real-estate-agent/#comment-3537 james Fri, 19 Oct 2007 16:40:58 +0000 http://thefrontsteps.com/2007/10/18/theory-of-the-starving-real-estate-agent/#comment-3537 kenny, i wasn't advocating a fsbo type approach. i was suggesting that one licensed professional was enough per transaction. kenny,

i wasn’t advocating a fsbo type approach. i was suggesting that one licensed professional was enough per transaction.

]]> By: Sophie http://thefrontsteps.com/2007/10/18/theory-of-the-starving-real-estate-agent/#comment-3536 Sophie Fri, 19 Oct 2007 16:07:55 +0000 http://thefrontsteps.com/2007/10/18/theory-of-the-starving-real-estate-agent/#comment-3536 <cite>But their styles were very different. The first agent was a pusher. The second was an adviser. I still believe it’s the buyer who is responsible to know his financial comfort zone and to find the right person to work with.</cite> it's amazing the number of people who do not interview their agent (selling or buying). My answer is generaly that one: If you divorce and have to split (or hopefully NOT split) $1M, you surely would find the best possible lawyer to protect your assets. A house is about the same amount of money... and somehow, people dont even see the need for a good agent - as in "we interview many agents and picked the one who had the best identical vision to protect our assets). Or is it pride that "they actually dont need an agent, so anyone would do"? I dont get it. But their styles were very different. The first agent was a pusher. The second was an adviser. I still believe it’s the buyer who is responsible to know his financial comfort zone and to find the right person to work with.
it’s amazing the number of people who do not interview their agent (selling or buying).

My answer is generaly that one: If you divorce and have to split (or hopefully NOT split) $1M, you surely would find the best possible lawyer to protect your assets.
A house is about the same amount of money… and somehow, people dont even see the need for a good agent - as in “we interview many agents and picked the one who had the best identical vision to protect our assets).
Or is it pride that “they actually dont need an agent, so anyone would do”? I dont get it.

]]> By: anon8mizer http://thefrontsteps.com/2007/10/18/theory-of-the-starving-real-estate-agent/#comment-3526 anon8mizer Fri, 19 Oct 2007 08:05:20 +0000 http://thefrontsteps.com/2007/10/18/theory-of-the-starving-real-estate-agent/#comment-3526 We can blame the agents all we want, but it's the buyers who should be ultimately responsible for their own bank accounts. When I was looking for my home in '04, my first agent kept on showing me dumpy places and kept on reminding me that until I put more money on the table, I would not be able to get nicer places. My agent knew that I had a lot more in the 'reserve' and kept on encouraging me to put more chips on the table. I on the other hand already knew what my game plan was and how much I wanted to spend so I would not budge. After a few months with this agent I realized this one wasn't right for me so we parted ways. My second agent was great. Knew what I wanted and understood my plan (it involved a 1031 and possibly a reverse 1031 if timing didn't work out). He told me it would take time to find what I was looking for. I told him I was in no hurry. He didn't bother sending me to places that he knew I didn't much care for, so we had very few interactions. Then one weekend he called me and said, "I got one for you," and that was it. I would use him again when I sell. Both agents were relatively new to the trade in '04. But their styles were very different. The first agent was a pusher. The second was an adviser. I still believe it's the buyer who is responsible to know his financial comfort zone and to find the right person to work with. If the buyer overpays, he has nobody to blame but himself. We can blame the agents all we want, but it’s the buyers who should be ultimately responsible for their own bank accounts. When I was looking for my home in ‘04, my first agent kept on showing me dumpy places and kept on reminding me that until I put more money on the table, I would not be able to get nicer places. My agent knew that I had a lot more in the ‘reserve’ and kept on encouraging me to put more chips on the table. I on the other hand already knew what my game plan was and how much I wanted to spend so I would not budge. After a few months with this agent I realized this one wasn’t right for me so we parted ways.

My second agent was great. Knew what I wanted and understood my plan (it involved a 1031 and possibly a reverse 1031 if timing didn’t work out). He told me it would take time to find what I was looking for. I told him I was in no hurry. He didn’t bother sending me to places that he knew I didn’t much care for, so we had very few interactions. Then one weekend he called me and said, “I got one for you,” and that was it. I would use him again when I sell.

Both agents were relatively new to the trade in ‘04. But their styles were very different. The first agent was a pusher. The second was an adviser. I still believe it’s the buyer who is responsible to know his financial comfort zone and to find the right person to work with. If the buyer overpays, he has nobody to blame but himself.

]]> By: ramen4realtors http://thefrontsteps.com/2007/10/18/theory-of-the-starving-real-estate-agent/#comment-3521 ramen4realtors Fri, 19 Oct 2007 04:40:54 +0000 http://thefrontsteps.com/2007/10/18/theory-of-the-starving-real-estate-agent/#comment-3521 like you said, "20% of agents doing 80% of the business," for the rest it's ramen4realtors. 'nuff said. like you said, “20% of agents doing 80% of the business,” for the rest it’s ramen4realtors. ’nuff said.

]]> By: duggo http://thefrontsteps.com/2007/10/18/theory-of-the-starving-real-estate-agent/#comment-3511 duggo Fri, 19 Oct 2007 00:30:33 +0000 http://thefrontsteps.com/2007/10/18/theory-of-the-starving-real-estate-agent/#comment-3511 my, my. let's not take this all to seriously boys and girls..this is a form of entertainment, after all..right? we talk. we learn. we converse. we opine. we whine. we rant. we bark.we have fun too. if eye wuz flamming anyon, you wuld definetely no it. oh by the way, thanks Randy for agreeing with me. Lots of people do, now and then. my, my. let’s not take this all to seriously boys and girls..this is a form of entertainment, after all..right?

we talk. we learn. we converse. we opine. we whine. we rant. we bark.we have fun too.

if eye wuz flamming anyon, you wuld definetely no it.

oh by the way, thanks Randy for agreeing with me. Lots of people do, now and then.

]]> By: Randy http://thefrontsteps.com/2007/10/18/theory-of-the-starving-real-estate-agent/#comment-3508 Randy Fri, 19 Oct 2007 00:07:52 +0000 http://thefrontsteps.com/2007/10/18/theory-of-the-starving-real-estate-agent/#comment-3508 This is the first time I've read a post by Duggo and actually agreed and wondered "Is this really Duggo?" All parties involved in a house transaction are responsible for the prices people pay, but the buck stops at the buyers (unless of course the realtor is holding a gun to your head). We all do research when we're going to buy something as minor as a tv, car, to make sure we are making the best decision for ourselves yet somehow that doesn't happen as much with buying real estate. I don't get why, especially since you are spending an exuberant amount more. As I read Duggo's last comment I realized this couldn't be anyone other than him; since once again, he is flaming on someone. When is the madness going to stop Duggo? This is the first time I’ve read a post by Duggo and actually agreed and wondered “Is this really Duggo?” All parties involved in a house transaction are responsible for the prices people pay, but the buck stops at the buyers (unless of course the realtor is holding a gun to your head). We all do research when we’re going to buy something as minor as a tv, car, to make sure we are making the best decision for ourselves yet somehow that doesn’t happen as much with buying real estate. I don’t get why, especially since you are spending an exuberant amount more.

As I read Duggo’s last comment I realized this couldn’t be anyone other than him; since once again, he is flaming on someone. When is the madness going to stop Duggo?

]]> By: alex (the editor) http://thefrontsteps.com/2007/10/18/theory-of-the-starving-real-estate-agent/#comment-3507 alex (the editor) Fri, 19 Oct 2007 00:04:46 +0000 http://thefrontsteps.com/2007/10/18/theory-of-the-starving-real-estate-agent/#comment-3507 You all make very good points. Sophie, I'm not needing to hang in there, and therefore my clients will get the best price they can. But at the beginning of my career, I had to wonder, and i still do. Especially when representing a seller, getting 5-10 offers, 2 are lowballs, 7 are right around the same, and one completely blows everyone away. I also understand the whole dynamic and it is a very touchy situation. You are all right. It is our job to get you the place at the lowest price, but your (buyers) job to get the place, as it is your money and your comfort level that has to be maintained. And that, unfortunately means you have to throw in all your chips sometimes. It is a balancing act, that is for sure. My clients who are working with me now, know that I struggle everytime I know we have to go over asking. You just never know how much is enough, or how much is too much. You gotta pay what you're comfortable paying, and offer a price you'd be comfortable knowing was your best if someone comes in $1 higher, so you don't think, "I would have paid that.", and ultimately lose the home. At the end of the day, I still think many an agent is starving and doing what it takes to get their "un-educated" clients to go way over. But fear not! You are all educated. You're reading this blog ;-) and the countless others. You will win in real estate! Eddy, you are absolutely correct about just writing the offer. You have nothing to lose. You can't win if you don't play the game. You all make very good points. Sophie, I’m not needing to hang in there, and therefore my clients will get the best price they can. But at the beginning of my career, I had to wonder, and i still do. Especially when representing a seller, getting 5-10 offers, 2 are lowballs, 7 are right around the same, and one completely blows everyone away.

I also understand the whole dynamic and it is a very touchy situation. You are all right. It is our job to get you the place at the lowest price, but your (buyers) job to get the place, as it is your money and your comfort level that has to be maintained. And that, unfortunately means you have to throw in all your chips sometimes. It is a balancing act, that is for sure. My clients who are working with me now, know that I struggle everytime I know we have to go over asking. You just never know how much is enough, or how much is too much. You gotta pay what you’re comfortable paying, and offer a price you’d be comfortable knowing was your best if someone comes in $1 higher, so you don’t think, “I would have paid that.”, and ultimately lose the home.

At the end of the day, I still think many an agent is starving and doing what it takes to get their “un-educated” clients to go way over.

But fear not! You are all educated. You’re reading this blog ;-) and the countless others. You will win in real estate!

Eddy, you are absolutely correct about just writing the offer. You have nothing to lose. You can’t win if you don’t play the game.

]]> By: duggo http://thefrontsteps.com/2007/10/18/theory-of-the-starving-real-estate-agent/#comment-3503 duggo Thu, 18 Oct 2007 20:50:33 +0000 http://thefrontsteps.com/2007/10/18/theory-of-the-starving-real-estate-agent/#comment-3503 Cue the violins now. I think it's all about GREED. Blame the sellers for thinking their property is the greatest in the world and worth top dollar. Blame the Realtor for coaching them to get the outrageous price, which only ups the realtor's fee. And finally, blame the buyer who chooses to pay the outrageous price. Trouble is with that theory is this: As a homeowner, I know that I will want top dollar for my fabulous house, when it comes time to put it on the market. so I guess I'm guilty too..sort of. Oh, one more thing. GOD ALMIGHTY. I wish this site had a built-in spell check...well. for some folks. LOL> Cue the violins now.

I think it’s all about GREED. Blame the sellers for thinking their property is the greatest in the world and worth top dollar. Blame the Realtor for coaching them to get the outrageous price, which only ups the realtor’s fee. And finally, blame the buyer who chooses to pay the outrageous price.

Trouble is with that theory is this: As a homeowner, I know that I will want top dollar for my fabulous house, when it comes time to put it on the market.

so I guess I’m guilty too..sort of.

Oh, one more thing. GOD ALMIGHTY. I wish this site had a built-in spell check…well. for some folks. LOL>

]]> By: eddy http://thefrontsteps.com/2007/10/18/theory-of-the-starving-real-estate-agent/#comment-3501 eddy Thu, 18 Oct 2007 20:11:34 +0000 http://thefrontsteps.com/2007/10/18/theory-of-the-starving-real-estate-agent/#comment-3501 The customer and buyer's agent do not have the same goals. Agent wants you to "win" the auction and the buyer wants to pay as little as possible. Therein lies the issue. Many customers I am sure put too much faith in their agent not recognizing this inherit conflict with their buyers-agent relationship. If a buyer / customer is blindly listening to their agent than they sort of get what they are asking for in the process. But a good agent should really understand their clients financial situation and make sure the buyer knows all of the risks and potential downfalls. A good agent should know when to put the brakes on to protect a client. I do agree that most over-bidders are 2nd and 3rd time losers on previous offers and much like gambling additions, buyers hate to lose. This can make an additional 50 or 100k seem like nothing for a potential buyer if they can 'win'. Note to buyers: If you see a property and like it; get out to see it urgently and make a same day bid at, or below asking price before the place gets tons of bids. Most agents wait until the offer date or until after the open house / brokers tour. All offers expire in 24 hours from time presented unless stated otherwise, which puts the seller in a unique position of having to make a decision. This puts you in control. Note to agents: get you buyers to make offers; even if they are low-ballers. How many agents had their customer go into contract on their first offer? LOL. Get your customers to make an offer. It cost's nothing but time and when they see a property they love they will be more inclined to put in a winning bid. In this market, there are still a lot of qualified buyers, but they are now competing for the best properties. E. The customer and buyer’s agent do not have the same goals. Agent wants you to “win” the auction and the buyer wants to pay as little as possible. Therein lies the issue. Many customers I am sure put too much faith in their agent not recognizing this inherit conflict with their buyers-agent relationship. If a buyer / customer is blindly listening to their agent than they sort of get what they are asking for in the process. But a good agent should really understand their clients financial situation and make sure the buyer knows all of the risks and potential downfalls. A good agent should know when to put the brakes on to protect a client.

I do agree that most over-bidders are 2nd and 3rd time losers on previous offers and much like gambling additions, buyers hate to lose. This can make an additional 50 or 100k seem like nothing for a potential buyer if they can ‘win’.

Note to buyers: If you see a property and like it; get out to see it urgently and make a same day bid at, or below asking price before the place gets tons of bids. Most agents wait until the offer date or until after the open house / brokers tour. All offers expire in 24 hours from time presented unless stated otherwise, which puts the seller in a unique position of having to make a decision. This puts you in control.

Note to agents: get you buyers to make offers; even if they are low-ballers. How many agents had their customer go into contract on their first offer? LOL. Get your customers to make an offer. It cost’s nothing but time and when they see a property they love they will be more inclined to put in a winning bid.

In this market, there are still a lot of qualified buyers, but they are now competing for the best properties.

E.

]]> By: kenny http://thefrontsteps.com/2007/10/18/theory-of-the-starving-real-estate-agent/#comment-3495 kenny Thu, 18 Oct 2007 19:12:10 +0000 http://thefrontsteps.com/2007/10/18/theory-of-the-starving-real-estate-agent/#comment-3495 Yeah. That's sort of true James. It has been lawyered pretty extensively by now. If a buyer or seller can do it his or herself, god bless. Go for it. Some people can. Most people cannot. There is a whole lot of time consuming thought processes that make for a viable transaction. And experience ... the art of the deal, so to speak. That can be invaluable. But no doubt, some folks are equipped. And the paperwork is attainable. Yeah. That’s sort of true James. It has been lawyered pretty extensively by now. If a buyer or seller can do it his or herself, god bless. Go for it. Some people can. Most people cannot. There is a whole lot of time consuming thought processes that make for a viable transaction. And experience … the art of the deal, so to speak. That can be invaluable. But no doubt, some folks are equipped. And the paperwork is attainable.

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