Show Your Work (As Applied To Professional Real Estate Agents)
During our school days we always dreaded the “show your work” statement from an instructor as they were handing out a test or perhaps having us work in front of the class. Of course, we thought we knew the answer and shouldn’t have to prove it over and over again. After all, multiplying 24 x 5 and reaching the result of 120 wasn’t that difficult. The instructor should know our math skills are strong enough to easily handle the multiplication. Well, not really. The fact is the instructor needed to see the work to be sure you not only provided the correct number but that you actually understood how you reached that number.
That was school. Today’s real estate market is the real world. However, the same rule should still apply. Whether you are a Seller or a Buyer of Oak Island NC homes, Southport NC homes, Boiling Spring Lakes NC homes or St. James NC homes, you should be able to confidently ask an Agent to “show your work” when discussing the value of the property you are selling or buying. No matter how experienced or “successful” an Agent may be, simply sitting at your kitchen table and or at their desk and stating a value for the property should not suffice. A higher standard should be met. After all, Buying or Selling real estate is not determining a price for an old Coke bottle at a yard sale.
Here are three major items a seller should look for when meeting with an Agent to discuss selling a property:
- The Agent works hard to determine the market value. Market value is the highest price a buyer may be willing to pay. Working hard means he has done his computer research and actually visited all of the comparable properties, making notes to share with you. The assessed tax value really shouldn’t be part of this discussion. The market value should be based primarily on sales activity of like properties in your immediate vicinity. Other current listings should be provided and discussed but today’s real estate world is all about the sales.
- The Agent analyzes that information to recommend an initial asking price.
- The Agent puts all the information into a form that makes it easy to share with you; so that it is easy for you to understand why the Agent is making their initial asking price recommendation. The Agent should be confident and persuasive about their recommendation but in the final analysis be clear that the decision of what price to ask is up to you, the Seller.
- After you have confidently reached an initial asking price you should have the discussion about marketing; if the price is wrong all of the marketing in the world won’t sell the house.
Now, let’s talk about the standard a Buyer should set for their Agent. After all, the Buyer is bringing the money to the transaction and buying real estate is one of the most important financial transactions a person will ever be a part of. Thus, the standard for a St. James NC Buyer’s Agent should be as high as that set for a St. James NC Seller’s Agent, maybe even higher.
Here are several items that should be part of your Buyer’s Agent standard:
- Discuss, in detail, the process of house hunting, looking at homes, making an offer, negotiating the initial price and terms, completing inspections and negotiating issues that arise from the inspections; the attorney’s role and the current issues that may arise in the mortgage approval process; final inspections and closing process. In other words you want to have every question answered by the agent, even ones you didn’t know to ask until the Agent raised your awareness. You should feel comfortable knowing the Agent is representing your interests (they’re watching your back).
- The Agent should ensure that you have met with a mortgage lender so that you are confident and clear on the type of mortgage, the amount you can borrow, the payments, and the cash needed to complete the purchase. In today’s market, having a pre-approved mortgage is an absolute requirement when considering placing an offer on a home. Very few, if any, sellers will consider an offer if it does not include pre-approved financing or proof of funds available for a cash purchase.
- The Agent listens closely so he fully understands your needs and wants as you discuss the type of property you are looking for. When searching for homes to show you, he should have these needs and wants at the top of his mind.
- While showing you the homes, the Agent should ensure you are comfortable in taking the time to thoroughly look at the home, answer your questions, and alert you to any issues or problems that come to the agent’s attention. When you find a home in which you are interested the Agent should provide information on other homes sold and for sale in the immediate vicinity to give you real data and discuss any other factors on which to base the price you will offer. The Agent should provide a square foot comparison, different features and location, etc.
How does a Buyer or a Seller choose an Agent with this level of competence? Warning: Do not simply take another person’s recommendation; consider the recommendation but still look for the level of service and attention described here. Whether they are a friend, referred to you, contacted at an open house, over the Internet, or you walk into their office, review the above criteria and ask how the Agent works. Listen and ask questions to discover whether providing the level of service described here is their normal way of doing business. If the Agent is not prepared to show his work, perhaps it is time to interview another Agent.
When you find the Agent that does measure up to this standard you will have found a professional that will be valuable to you for as long as you live in the community.
As anyone who knows me will attest, I’m not one to pat my own back or toot my own horn. However, I will tell you that I do my very best to provide this level of service to each client that I am privileged to work with. If you are considering buying or selling real estate in Southport, St. James, Oak Island, Boiling Spring Lakes or anywhere else in Brunswick County NC, please call (910-538-4270) or send an email so we can have a thoughtful, factual conversation about your needs.
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