This is the second in a series – see all the posts
Are You Surprised?
I was pretty surprised by the results from the NAR Profile when it comes to what buyers want most from their real estate agents. This is how the buyers identified the things they most wanted help on:
49% Finding the right home- 13% Negotiating contract terms
- 11% Negotiating price
- 9% Completing paperwork
- 8% Identifying comparable homes and their final sales prices
- 5% Identifying how much to spend on a home
- 4% Find and acquire financing
-
3% Other
Are you surprised? No? Take another look at the results.
Here’s what surprised me. First, 49% of the buyers said they most wanted an agent’s help to find the right home. That surprised me because evidently despite all of the places on the Internet where consumers can go to look at homes, almost half of them still thought that an agent can do a better job of helping them find the right home.
The second thing that surprised me was that so few buyers thought that negotiating contract terms or price was the most important thing an agent can do for them. Granted, I’m not a real estate agent, but I’ve bought and sold homes, and worked with enough real estate professionals to know that very often, finding the right home is the easy part.
Negotiating contact terms and price, and keeping the deal together until you reach the closing table can be a challenge. And, while some consumers are probably good negotiators, I think this old saying applies to real estate as much as the law: “A lawyer who has himself as a client is representing a fool.” Or you could say, “A Buyer who has himself as a client (in negotiations) is representing a fool.” There’s just too much emotion and too many details.
So, what is the real estate marketing lesson learned? From my perspective, I think we need to get better at educating the consumer on the critical role an agent plays from the time the right home is found through to the closing table.
Think About This!
If the most important thing an agent can do for a buyer is find the right home – and — It’s becoming easier all the time for consumers to access MLS listings, take virtual tours, and so on,
Then
How important will an agent be over time?
What do you think?
5 Comments
February 11th, 2008 at 7:43 am
I couldn’t agree more everyone should have a real estate agent. For negotiating and to assist in the search. They know the area and can steer you and advise on good and bad situations. I also think people need to be informed consumers and do some homework on how to obtain a mortgage that is right for them and the area they are considering.
February 11th, 2008 at 8:54 am
Buyers realize that they can only get so much information from the internet because it is still a marketing channel. Only the best photos and descriptions of properties will be on the web. Buyers need a knowledgeable Realtor who knows the ups & downs of the neighborhood to give them the full picture.
I agree that too many Buyers think they can negotiate for the home themselves. This is especially true of business people who negotiate a lot in their business. Often their emotions and ego get involve in the negotiating because it is what they do for a living and it makes it harder on us to keep the deal together.
I agree that Buyers need to be better educated about the role a Realtor plays in the transaction. Currently the majority of buyers concentrate on finding the right home first and then contact the Listing Realtor or the Listing Realtor’s office. They leave the handling of their transaction and the agent they use up to fate. If the Buyer is not working with a true professional Realtor then the Buyer may end up sabotaging the transaction.
February 11th, 2008 at 11:52 am
Kirk and Carey,
Glad you stopped by. Kirk, your comments are right on target. Carey, I like the information you have on your site.
I bet you could go even further in expanding on that to identify why the role of the agent should be as you describe. I’m sure some people will still want to do their own negotiating, but it might start them thinking about the reasons why they shouldn’t.
Kathleen
February 11th, 2008 at 1:45 pm
Very interesting statistical breakdown.
Thanks for the info.
February 11th, 2008 at 2:14 pm
Welcome, Atlanta!
Glad you found the info useful.
Kathleen