New Jersey Real Estate Agent Inadvertently Poses Important Question
What does it mean when you say, “List Responsibly”? If you are the owner of a property, who are you responsible to? Yourself, your family, your community? Obviously, the intent of this billboard is to starkly point out the difference of listing with an agent who does hundreds of transactions each year or going with a friend or family member who may have little to no real estate experience. Yet, according to most statistical sources, over half of homes listed are listed with new or inexperienced family members.
Is there anything wrong with that? I remember being a teenager trying to get a job and everyone wanted experience. I remember asking, “How do you get experience if you can’t get a job?”
So why do sellers go with their cousin, brother, or co-worker? First, one would assume, they trust this person to have their best interest at heart. Or two, they think it doesn’t matter and all agents are alike. They don’t do too much, they are overpaid (Cousin Jim is giving away most of his commission), or they just need someone to do the paperwork.
As a real estate agent who has sold over 7,000 homes, I must address these two reasons:
1. Trust and best interests – As an agent, we have a fiduciary responsibility to look out for our clients’ best interests. We are bound to an oath of honesty and obedience. It is always the client’s decision. So, we come back to the issue of best interests. As agents, we owe it to our clients to be honest. An honest assessment of the market. An honest recommendation on the price, terms, disclosure, and everything else that may come along in between listing and close of escrow. This is what experience brings, and this is often where friendship fails. Cousin Jim may not be able to tell you what you need to hear.
2. It does matter – All agents are not alike. The good ones do too much, and they earn their commission, often many times over. If you don’t believe that, list with anybody, and then when issues come up later (after closing), good luck.
So, of that 50% of sellers who go with a family member, how many do it out of trust or disdain for agents? I can understand trust, but the disdain is a reflection on our profession’s failure to explain what we do and why we do it. I guess there are a few folks who don’t like doctors. Most people don’t like attorneys, but their necessity is well-established. Maybe we should require a college degree. Instead, we have agents who take 90 hours of school, pass a state test, and BOOM, they are agents. It’s not as simple as that, but it is close, and then we wonder why people think it doesn’t matter. Well, in our profession, we learn by doing rather than sitting in Law School. And that is why experience and numbers of successful transactions are important. Experience is our Master’s degree. Transactions in the hundreds is our PhD.
So, what does “List Responsibly” mean? You decide. If your responsibility is to give your sister a commission, list with her. But if your responsibility is to yourself or your family, then hire an agent with transaction experience.
Oh, did I mention the 7,000 homes sold?
- Joseph
