How will this shift affect Buyer Agents(a) vs Seller Agents(b)?
My answers are too long. But thorough.
Buyer Agents must qualify new clients more rigorously that in the old model. Due to the sheer numbers of people now seeking homes vs six months ago real estate professionals must be clear to the clients (and self!) the importance of being bank qualified with a reputable MLO or lending organization easily accessible and cooperative with the group facilitating the real estate transaction.
Buyer Agents are more responsible than ever for informing and educating the client regarding pertinent aspects of the real estate transaction. It is the Agent’s duty to provide (direct or via other media) all information related to their search, transaction/acquisition and follow up activities.
From Agency Agreements (Exclusive) to Acquisition (Buying) Protocol and beyond there is a plethora of information needed by each and every agent to properly do their job. The same information must be shared with and explained to the client before, during and after the process is initiated. It is not just the Moral responsibility of the Agent but also the Legal responsibility of the Agent to do so, to work with the best interest of the Client first and foremost.
In the final analysis the Buyer Agent must be more thorough and clear with any/all Client-based interactions across the board.
Seller (Listing) Agents also have a more precarious position now that during cycles of better balance between inventory and acquisition.
Due to the hue and cry of every reporting agency out there (so it seems) about homes selling faster than the “for sale” paperwork can be done it gives the public an impression that having a real estate agent exclusively is an unnecessary expense. Therefore it is equally incumbent on the Listing Agent to clearly establish their responsibilities, programs and expectations for the Seller.
Sharing the statistical basis of the real estate professional’s value is imperative. Clarity is key. Using unbiased and non-vested statistics resources is critical - quoting a Realtor organization or the Multiple Listing Service gives the impression of using slanted information. Federal and State data mines are unique sources of real estate statistics and information. Choose several resources that reflect your personal style but are not vested by advertisements by/for real estate products, services or companies. Clarity!
A Selling Agent cannot, usually, get by with a casual conversation and a listing agreement. Even with a referral from Mom or Dad, your sales plan will be reviewed closely and cross-referenced with your local online search engines. Be prepared to not only disclose your marketing but support your choices with empirical research results, i.e., JD Powers & Associates, Consumer Reports et al.
Some things are consistent with real estate sales: Location, location and location, as well as the old “in market” and “out of market” (priced right and not priced right) position. Right location and right price equals being the active recipient of many offers. Priced too low and there may be a flood of offers that bring the price up to where it should have started while priced too high and it will sit for months. This is where your choice of real estate professional is critical.
Doesn’t technology “balance the field” between new agents and tenured (very experienced) agents? After all, most real estate information is public record and can be found online. Right? If a new agent can learn sales info from your area over the last year then that person’s opinion should be equally valid, right? Hmmm. Let’s see...
Two years ago real estate sales trends were one-hundred eighty degrees from where they are now. The global economy was being swallowed by a fiduciary vortex. And yes, the global economy influences local real estate. Would a new agent know that?
If several homes in your neighborhood sold during the last few weeks that would definitely influence the pricing of your home. As it’s too soon to be a matter of public record, how would you (or the new agent) know? Hmmm. A tenured agent would know as a matter of course, his professional network includes that kind of info daily. Professional courtesy. Et cetera.
Your doctor discusses your medical history with his/her peers regularly. But not with the interns (the new docs). They haven’t earned that access. See the point?
Technology? Tenured agents know the value and engage in ongoing education to have not only the newest tools but also the most current that are best for your selling situation. So they use a laser rather than a shotgun. They don’t want to impress you with buzzwords, they just want to market your home for the best price the market will support in the shortest amount of time and the least amount of inconvenience for you. Timing, technology and tenure. Best way to get your real estate job done.
The Shift requires Seller Agents to work much harder than before...