I recently came across this video and had a great chuckle.  Obviously, it’s out there in the web video world; so, why don’t we discuss its points.  You’re going to find it, watch it and take it as the truth anyway if I don’t talk about it! Let me make it expediently clear, there is a statement in this video that violates anti-trust/price-fixing.  This video is not my opinion nor does it belong to me; however, after you watch it, I’ll talk a little about what this “brilliant” video producer who lives in New York City has to say about the profession I love so much.

Step 1: Do your own research. Before you hire a broker, do your own research what comparable homes have sold for you in your area.

Absolutely. I couldn’t agree more. Be cautious, though, of sites that don’t have a direct IDX feed for closures through your local MLS. Often, data is incorrect or unreported. The bigger issue here is finding an agent who understands HOW to price.  The comparable approach is definitely NOT the way to truly price a home in today’s market. It’s a great broker’s job to be an economist, future-caster and market specialist. There’s more to pricing a home than looking around on the computer to see what the neighbors got.

Step 2: Don’t be pushed to accept a price lower than what you think it’s worth. The narrator says, “Brokers hold their own personal homes on the market longer yielding higher prices.” Let’s test that. According to the last 8,878 “owner agents who sold their personal homes” in the entire middle Tennessee MLS they received 98.26% of list price with an average days on market of 79. Of the homes owned and sold by non-agent owners (a sampling of tens of thousands) sellers received 97.69% of list price with an average days on market of 89. In Nashville proper, owner agents received 97.5% of list price at 62 days on market. Non-agent owners using agents received 97.9% of list price at 67 days on market. I obviously don’t have to explain this point!

I agree however with the phrase “don’t be pushed.” You’re smart enough to google and find this page, so you’re smart enough to know that the person you hired in the first place isn’t going to push you around anyway. If you’ve taken the time to ask the right questions and address the issues, you should feel confident in being advised and counseled, rather than pushed.

Step 3: Don’t be bullied into an open house. He says 2% of all homes are sold at an open house. Again, a wrong statistic. It’s actually less than 1%. I have to agree on the open house thing. Open houses accomplish these things:

1. Generates potential buyers for the agent holding the home.
2. Generates future listings for the agent, as most of the people who come through are neighbors the neighbors who may sell their home in the future and want to check out the competition.
3. Keeps the seller happy because they still continue to believe the myth that open houses sell homes.

Extra Tip in Step 3:  Negotiate a lower commission. There is NO standard commission rate…period. Just remember, you get what you pay for. Find that agent who you think is best for the job. Any agent who will negotiate with YOU on their commission will likely show the same negotiation skills when negotiating the price on your home with the buyer/buyer’s agent.

Step 4: Make them run all offers past you.  In the state of Tennessee, it is illegal for an agent to not present all offers, whether they be on a napkin or a formal contract. Unfortunately, there are agents who choose to break the law. I really can’t comment more on this because there’s few ways to find out if your agent is holding out an offer. I’m sure it happens. All I can say is, I show all offers. In fact, I got fired three years ago for taking a low offer to a seller brought to me by a buyer’s agent. When that same seller called me recently to list more property for the entity, I politely declined.

Step 5: Don’t use your broker’s inspector.  If you have an unethical real estate agent, you won’t know it unfortunately. A good agent should give you choices based off of other clients’ recommendations and experiences. I could care less what inspector someone uses. All inspectors in Tennessee are licensed. I’ve only seen one who didn’t know up from down, and I don’t think that inspector is in the business any more. Again, I’m sure “paying off an inspector” happens, but not in the circles I travel in.

Step 6: Be leery of their renovation suggestions.  I can’t even comment on this one, it’s SO out there. It might as well have said, “Watch for frozen potatoes in their freezer.” It makes no sense no matter how you measure it.  Obviously, someone told the writer he had to have seven points in his video and had to think of something.

Step 7: Consider selling your home yourself.   Absolutely, couldn’t agree more. Consider it. Then consider the fact that I’ve had over 300 credited hours of real estate education, over 900 hours of non-credit real estate education, written over 800 real estate contracts, spent over umpteen whatever hours networking with other agents, been through the doors of over 5000 homes in Middle Tennessee and spent tens of thousands of dollars on tools to connect homes with buyers. Now, consider doing yourself. Good idea?

In this point, the narrator says over 50% of house hunters look on the web for their home. Dude, it’s currently 89%. Yes, that IS over 50%, but come on! Get some updated facts, man!

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In conclusion, if you’re the type who still believes this type of rhetoric in the video or is “skeptical” on real estate agents, please do me the favor of not calling, emailing or contacting.  We probably wouldn’t get along too well, and I love, respect and cherish what I do too much to have to defend the all I do to make a fair, honest living.  I tend to work with sellers who “get it” and appreciate me more than I could ever dream of.  For my sellers (and buyers) reading this, I appreciate you so much.  I truly have the best clients anywhere.

Do you have  something you’ve read or seen on the internet or been told by someone that you want explained?  Send it on over, and I’ll happily address it!

Tagged as: nashville real estate