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6 MISTAKES Your Real Estate Agent is Making | Realtor Mistakes to Avoid



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Welcome back to another video, my name is Matt Leighton and in today’s video we’re

going to go though the top six mistakes that your real estate agent is making.

If this is your first time on my channel, be sure to hit the subscribe button to stay

up to date on the latest real estate video.

And without further ado, let’s get started with the first mistake that your real estate

agent is making.

And that is Not submitting your lowball offer.

It is your real estate agent’s job and legal duty to submit an offer on your behalf.

And if they force you not to submit the offer or you almost feel like they won’t submit

the offer that you signed off on, you may have yourself a problem.

Now let’s get one thing straight, there’s nothing wrong with your agent coaching you

up on the comparable properties and educating you on the market on why an offer may be considered

too low.

But too often I hear agents say that you don’t want to ‘offend’ the other side or that

your offer is too low that it could be ‘offensive’.

Offensive to who?

Does the agent think it’s offensive?

That shouldn’t matter.

Listen carefully, depending on your market, and if a property has been listed for a long

time, it may make sense to submit a low offer.

Work with your agent and understand the reasoning and logic behind why a low offer may work

and the coomparable properties that have sold that gives some strength behind your low offer.

Mistake number two is Not getting enough information out of the seller or seller agent.

Sometimes as a listing agent, I’ll open up my email and I’ll get an email from an

agent I’ve never talked with before and there will be an offer.

I’m thinking who the heck are you?

Before I even get to the offer, I want to know the back story, or at least a little

bit about who is submitting the offer, why they are submitting it, will they be living

there or will it be an investment property.

And it works the same way when you submit the offer.

Your buyer’s agent needs to understand why the owner is selling and what the motivation

is there.

Is there a baby crib and a baby on the way, was there a divorce, are the sellers moving

for a job?

Your buyer agent needs to find out that motivation.

That will help you come up with your offer.

And most of the time what will end up happening is the listing agent will share more than

they should, and they might spill the beans on sharing a piece of information that will

help you get the property at a better price.

I’ve even had agents tell me, unprovoked, that the seller is willing to take $10,000

lower than the list price.

Are you serious?

Could you imagine if the seller was on that call?

They’d be furious!

So whether you are buying a property or even selling a property, try to understand the

motivation and see what other information you can get out of the other side before you

submit your offer.

Mistake number three I see agents make is Agreeing to list your home at a price that

won’t sell.

It sounds so cliche, but there are a lot of hungry agents out there.

When you are selling your home and you interview 3 agents, because that’s the smart thing

to do, is to interview multiple agents, there’s inevitably going to be one agent that will

agree 100% with your price, and may even say you can get more to make you feel warm and

fuzzy inside.

But if you go on the market with your overpriced property, it’s likely that your home will

sell for less than what you would have gotten if you had priced it correctly all along.

The first few weeks you are on the market is the best time for you to get the best price.

And essentially what will end up happening is buyers won’t even make the trek to see

your overpriced home, it will sit on the market, rack up days on the market, and then once

it’s been sitting for a long time, the new buyers will start to wonder what’s wrong

with the property and wonder why it hasn’t sold yet.

At that point is when your agent is going to beat you up over the price and tell you

to lower the price significantly.

Effective marketing starts with list price.

Let’s get one thing straight.

The price is just a marketing tool to get an offer.

Only 2 people determine the price.

The buyer and the bank determine the price.

Can we agree on that?

Only 2 people determine the price?

The seller doesn’t determine the price, the listing agent doesn’t determine the

price.

Your marketing depends on the price so be sure your real estate agent can back up the

listing price they are suggesting with realistic and similar comparable properties.

The fourth mistake that real estate agents are making is Cutting their commission instantly.

How often do we see this?

A listing agent will go through their presentation.

The seller will love it.

Then right before they sign the agreement, they ask the agent if they will lower their

commission.

And what do most agents say??

They say YES!

Or if you live in a condo community or a neighborhood that receives a lot of ads in the mail from

real estate agents, you’ll have these agents that will advertise that they will sell your

house for half of what most real estate agents charge.

Are those discount agents spending the same on marketing?

Let’s start with the agents that reduce their commission when asked…

What you are doing when you are asking a listing agent to lower their commission is essentially

testing them on their negotiation skills.

And when the agent immediately agrees to the lower commission, they’re essentially telling

you that they don’t even believe they are charging what they are worth.

Imagine that you do hire them.

What’s going to happen when you are in negotiations.

You already know they cave at the first sign of pressure.

Do you think they’re going to work hard to get you that last $5,000?

They’ve showed you how little they think of themselves, what are they going to think

of your sales price when someone challenges it with a lower offer?

And how about those discount agents out there that advertise doing the job at half the price

of other agents?

Well that’s what sets them apart.

As an agent, it’s very simple, you can differentiate yourself on value or price.

You can advertise that you have 30 years experience and know every home in the neighborhood or

you can advertise that you’ll undercut every broker out there.

And if you’re selling your home and want to save some money you may think the discount

agent go this route but a reduced commission means reduced marketing resources.

Think about it.

You’re not going to get more marketing or more value from a reduced agent.

Sure there are some agents out there that are certainly charging way too much and are

not worth their value.

But if you think you’re going to get the same level of marketing, service, and value,

by choosing an agent with the lowest price in your market, you’re going to be in for

a surprise.

The fifth mistake I see agents make, and guys, just so you know, I’m not immune to this.

I’m not up here saying I’ve never been guilty of these things I’m talking about.

Because I have.

I’m not perfect but I’m getting better every day.

Except for the price thing.

I’ve never charged half price and I never will.

Ok the 5th mistake is Not properly telling the seller how to prepare the home for the

market.

And the two biggest things I see are 1) not wanting to disrupt the sellers’ life and

2) not suggesting repairs or upgrades if it’s clear that it will make a significant impact.

I was on a listing appointment the other day and husband asked what needed to be done.

And I went through my list and he was surprised.

He said “Oh, that sounds like a lot of work and that might be hard to do from my end”.

Now I forget what I told him after that, but in my head I was thinking “Good, it should

be a lot of work!

This should not be easy.”

If your life as a seller stays completely the same as you’re about to go on the market

and when you’re on the market and there’s no disruption, you’re probably not doing

enough.

Things like renting out a storage unit to put your junk, moving around furniture, plugging

in air fresheners, all these things will help, and some may be a bit burdensome.

But you’re going to do it because the house around the corner is too lazy to do it.You’re

going to look amazing compared to your competition.

And no matter how good your interior decorating and cleaning skills are, there’s still going

to be things that need to be done so you should hope your agent is recommending that you change

around your life a little bit to help you get the most money possible.

Speaking of getting the most money possible, I’m also seeing that agents are either scared

or just not telling sellers if there’s an opportunity to do a small upgrade, to spend

the money.

If you’re seeing that homes with hardwood floors in the living room sell for $20,000

more and it only costs $10,000 to put those in, you’re doing that deal all day long.

OK, I know what you’re going to say.

Not everyone has $10k lying around to use at the drop of a hat.

But think about it, if there are upgrades that can net the seller more money than they

invest, what is stopping the agent from recommending these upgrades?

Obviously the agent and seller should study the comps to see if it makes sense.

In this situation, like all situations, times is money.

So, and think about this, you could sell your place unrenovated in 6 months.

Or, you put in some new light fixtures, maybe new countertops, maybe new carpet, spend a

little, sell it in 2 months for $5,000 more than what you invested.

Time is money.

And I hope you as a seller or if you’re an agent are figuring out whether it’s worth

it to make the upgrades before hitting the market.

And the final mistake I see agents making is, are you ready for it, it’s not telling

the truth.

And I don’t mean this in a lying, deceitful, intentionally malice manner.

The way I see it, a lot of agents can’t talk to their clients like they would their

best friend.

A lot of the times the real estate agent will dance around topics, not want to hurt the

seller’s feelings, or not understand how to broach maybe more sensitive topics, like

your house smells like wet dog, or your home is $50,000 overpriced, how am I expected to

sell it?

I’m a firm believer that almost every problem is a communication problem.

You want an agent that will look you in the eyes and tell you directly if there are any

issues, what the issues are, and how to remedy them.

If you’re a seller with a home on the market, there is a very good reason why your home

is not selling, and your agent knows it.

And if you’re a buyer, there’s a very good reason that you lost out on the past

3 homes you wrote a contract on, and your buyer agent knows that reason.

And I hope for the sake of real estate agent-client

relationships everywhere that you have hired an agent that is not afraid or scared to tell

you the truth.

Okay there you have it the 6 mistakes that

real estate

agents are making.

I

really hope you found this video helpful, if you

did be sure to hit that thumbs up button.

And if

you have

anything to add, agree or disagree, would love to hear from you in the comments section

below.

Okay thanks for watching.

Until next time, create a productive day.

Take care.