Does Your Real Estate Agent Have Your Best Interest In Mind?
In this clip from Freakonomics, authors Steven Levitt and Stephen Dubner discuss how incentives influence behavior and ask the question: Does your real estate agent really have your best interest in mind?
There are many great Brokers and Realtors out there, but this video poses an interesting question. We simply suggest doing your homework and due diligence before selecting the right agent for your personal situation.
Most of us only sell a small number of properties in our lifetimes. With limited experience in real estate, how is the average homeowner supposed to maximize the profits from the sale of their property? Many sellers make the critical mistake of thinking all Realtors are the same. They list with the first agent who comes along. Does it make good business sense to put the responsibility of selling your biggest asset (your home) with someone who has no plan or qualifications?
It is very easy to obtain a real estate license, however, being a top producing Realtor is not easy. In many real estate markets, the 80/20 theory is accurate and in others it is not! The 80/20 theory is simply put that 80 percent of the local real estate business is done by 20 percent of the local real estate agents. This may seem shocking, but in some communities, the ratio can actually be closer to 95/5, 95 percent of the real estate sales being done by 5 percent of the local real estate agents!
The solution is to do a few hours of research before committing to any one Realtor, and to have a plan or checklist to evaluate their skills, experience and qualifications. These questions can help you get a sense of the agent’s process and personality, but the right decision may depend on your instinctive reaction. Follow your intuition. "If they feel too slick, it's not a good sign. It’s a good sign when you find an agent who can tell it like it is."