We’re not the first people to start a blog with a definition, but what the heck:
From the handy Wiktionary, we see that success is the “achievement of one’s aim or goal.” What we want to address is success when it comes to getting the best outcome for a client.
Qualitative or Quantitative
So this begs the question of what does success look like in our business? At some point, Realtors began to think more in terms of metric, or the quantitative, rather than the qualitative. Put another way, are our clients happy? It’s not easy to measure. And many in our industry say that, above all, the number of deals an agent does is what really matters. But if grabbing clients and leads without figuring out how to make them happy, aren’t we really undercutting the whole concept of client satisfaction?
That’s not the right way for the real estate industry, and it’s not right for our clients.
Bragging is not Marketing
Take some time to look on a website or any piece of media about real estate and tell me what you see.
You see a lot of agents and brokerages exclaiming how many deals they’ve closed or the total dollar value of the real estate they have presided over.
And, of course, so and so is an expert (ok, self proclaimed expert) in this neighborhood and this guy knows everything about this area.
You’ll probably also see a head shot that’s larger than any photo they might have of a home they sell.
There’s very little about that that demonstrates market knowledge or skill set. And it suggests that the agent is far more important than the property he or she is selling, as if their association with it is validation enough that it’s a good home.
Defining Expertise
Just because an agent says they have expertise in a specific area or type of property doesn’t mean that it isn’t true. But it also doesn’t mean that it is. When you begin to look for properties in areas with historic protection overlays, restrictive zoning, high growth, rapid gentrification or properties which may require advanced knowledge of the financing market (jumbo pricing, condos, adaptive re-use, multi-family), you want to make sure that you’re working with a person who has expertise.
They will demonstrate that expertise by showing you properties they’ve sold in the past, providing references to other satisfied customers, maybe even showing you a blog they wrote about their expertise. Buyers and sellers would do themselves a lot of good by spending some time researching which agents are the best to work rather than just picking a friend of a friend or the first broker they meet. We’re talking about significant financial considerations here.
A Good Agent is an Advisor
When someone is thinking about hiring a Realtor, they should be thinking that they’re signing on with an adviser. Because that’s what this is about.
Certainly you pay an agent for some specific activities, such as opening lock boxes, printing listings, spending time showing properties. But what you’re really paying for is their knowledge and experience. That’s what really determines whether you have a successful real estate transaction.
And once again, that raises the question of what truly is success in this game. We think it’s pretty simple. Do clients understand what decision they are making? Are they happy with where they landed? If the answer is YES, then you can call that a successful transaction.
What does it mean to understand the decision made? Well, they have to understand the specific market factors. And those factors need to align with what’s being considered—looking at appropriate comparables, finding the right neighborhood metrics. And certainly we want our clients to understand the financing behind the transaction.
Comfort and Understanding Equal Success
Here’s what buyers and sellers should expect:
- They should be ready for anything and everything that could happen in a real estate transaction.
- They should know quickly what the ramifications are if an appraisal comes back below (or above) the contracted price.
- They should know their options if a seller is refusing to make repairs.
- They should understand any financing complications in a non-warrantable condo.
A client should know all the risks and really understand what the value is of the property they’re trying to buy (or sell). That’s how everyone makes the best decisions.
Just to reiterate…this is why it’s so important to pick the right agent. Every agent does not bring the same tool box to the job. Clients are successful when they can make decisions with an agent—aka as an adviser—that understands each and every factor within the real estate transaction.
There will be a bump in the road, maybe more than one. When the pressure is high, clients need to feel secure and confident. If not, they’re not being served well.