I Own Scissors, but Don’t Cut My Own Hair: An Agent’s Insight to the Austin, Tx Seller’s Market
May. 14. 2014
Hello there blog readers of mine! (All two of you).
I know you look forward to my blogs about my bad dates and theories of my generation and what not, but due to the non-existant dating life I am going to write about something that has been time consuming lately (and I am not complainin’): Real Estate! So stay with me on my rant and hopefully learn a little about this crazy market we are in.
Currently we are going into Summer Months in Austin Tx and yes, it is still a hot seller’s market, with low inventory, but here is what is just starting to baffle me as an agent….
Just because I own a pair of scissors doesn’t mean I try to cut my own hair (or other people for that matter). And just because I know how to run doesn’t mean I am capable of teaching someone how to train for a race–so why, oh why on Earth if you don’t have a Real Estate License would you try to sell your home on your own???
Oh you want to save money?…I get it. Well know this–most people who do NOT use an agent to sell their home end up getting less for their home and it sits on the market longer. Not only that, but when you represent yourself you are more liable than ever before. Hello lawsuit!
I just want to give this example because I think it is a good (smart) one. My broker calls me into his office to chat recently. Mind you, he has 20 something years of real estate under his belt AND he is a real estate attorney. He says, “Hey I am thinking about listing my house soon and I want you to come take a look and tell me what you think.” I responded puzzled, “Why are you asking me? You know your home and neighborhood and how to sell it.” And he responded with a very honest answer, “You know how sellers are-we always think our homes are worth more than what they actually are. I need an honest, professional opinion. Plus I have a few things I want you to tell me if you think I should paint, stage, where to put things etc.”–all that coming from someone IN the business. While some real estate agents do list their own homes (and in Tx you must disclose if you are affiliated with the selling party or the actual home owner) the last brokerage I worked for would not allow owner/agent relationship, you would sell it under someone else in the office–which is smart.
I know, I know–you think real estate agents just take some photos, move a few pieces of furniture and stick a sign in the yard and they are done with it. There is so much more to it than that (well for the good agents anyway)! And actually in this market, it is even more pertinent to have an agent with diligence, market knowledge, an agent great at marketing your home in non-traditional ways and has a “pre-marketing plan”, a proactive one that foresee road blocks (like buyer’s financing and appraisal or title issues).
Another example I recently encountered: I am representing a buyer on a duplex. We were in multiple offers. We won. A few weeks later–appraisal comes back higher than contract price! Yessss!! (Always a good feeling to walk in with equity). This listing agent is a discount broker. He didn’t use professional photos and I don’t think he even pre-marketed the duplex. Did we go under contract after only two days? Yes. But do you think if he would have marketed the home more professionally and tested the market price prior to putting it in the MLS he would have had higher offers on the table that would have matched what the appraiser said it was worth? Possibly. (Just a theory, but no way of actually knowing).
It makes me wonder, though: Does an agent do as good of a job when he/she is taking that big of a discount? And furthermore, if he is discounting himself does he:
1. Value himself as a professional or his time?
2. Is he so busy being a discount broker that he has time to market my home, others and take care of everything?
3. Can he even afford an assistant or professional photographer?
4. Does he even have experience?! Maybe he is cheap because he is new and doesn’t know what he’s doing!?
I am not going to lie, when I first got into this industry, you could have paid me $500 to list your home and I would have been ecstatic–and that was in a bad market!! But as time and experience have taught me: time is money. And my work is valuable.
I will say often to all my friends and clients that trusted in me with their real estate transactions in my wee-early real estate days I: 1. Appreciate you having faith in me and am grateful for your business!!! and 2. I Apologize because I know so much more now than I did then!!
Sadly, that SAME broker from the duplex deal had a sign in the yard of a home I recently met with the owner prior and told him EVERYTHING he should do to get his home ready to market (so he did that, then hired someone cheaper…sigh). So, yes people like to save money, but sometimes it is worth it to pay more, get more and have to do less if you ask me (and that goes with a lot of things in this world, huh?–like a pair of sunglasses, a good cutting knife or a car-for example). A home worth over $400,000 (that’s been owned for almost 10yrs) and the owner thinks it is smarter to save a few by hiring a discount broker. Yes, I am bitter! Don’t get me wrong, I have and still do discount my commission when appropriate to the situation, but I don’t advertise myself as the “1% girl” or “flat fee gal” Some brokerages don’t even allow agents to discount themselves unless it is their own transaction. I know it is a seller’s market, but I keep seeing people get real greedy or maybe it is high optimism? In fact, last week there roughly 500 price reductions in the MLS (Multiple Listing Service). That is A LOT of price drops. Maybe the market is cooling off? Highly doubtful. Perhaps the overly aggressive pricing is starting to correct itself. Sometimes we agents have to stand behind our work and listen to the words of L’Oreal: “You’re Worth It.”
You’re darn right I am!
In this world of Wiki, Google, HGTV I guess we are all experts. And in a town of 7,000 real estate agents or something crazy like that, I guess there are a lot of people to choose from. Be smart out there folks, do your research, and shop: rates, agents, plumbers, insurance–everything–you will be glad you did in the end. And just because it is the lowest price DOES NOT mean you are getting the best value (think we all know this by learning a lesson one way or another).
You can find more about Ashley by clicking here and you can start your Real Estate home search here! Realty Austin has fantastic agents to help you find a home, guide you in the process and a great support team to help market your properties to get them SOLD! Also voted Best Places to work in Austin three years in a row according to the Austin Business Journal!