RES Luxury Group - 3/4/2024 1:35:45 PM

Three Risks of Hiring the Wrong Real Estate Agent

Whenever I think about this topic, one of the first things that comes to mind is a comedy show I watched years ago. There was a realtor who was somebody's friend's sister, and she sold the friend a house. It was closing day, and they were going with the keys to move into the house, and it turned out that she sold them the wrong property. The house wasn't even listed for sale, and they had bought something they didn't realize they bought. This, of course, is very funny, making fun of real estate in general, but it makes you wonder, could something like that actually happen? It then brings up the question of why is it so important? What are the pitfalls you can find yourself in if you hire the wrong agent? So I want to talk about that topic, and I think there are three really important areas to consider.

1. Local Area Expertise

Having a local area expert is crucial when it comes to hiring a real estate agent. This expertise is important for several reasons. One of the major reasons is the knowledge about what can and cannot be done with a property. For example, if you have a small farm, you may have questions about how many animals you can have and what types of animals are allowed. You may also want to know if there are any tax credits or benefits for having livestock. Similarly, in deed restricted and gated communities, there are strict regulations about what you can and can't do on your property.

Questions may arise about what requires the approval of the architectural review board and what can be done without approvals. Can you park motorhomes on the property or on the driveway? Are you able to add a shed for extra storage? Can you build a detached garage if you want an extra garage? Can you put up a fence, and what part of the property can you fence? These are just a few examples of the many considerations that come into play when dealing with communities that have restrictions. Having a realtor with local area expertise can help navigate these complexities.

Moreover, listing your home with a realtor who has local area expertise ensures that your property is exposed to agents who have buyers in that specific area. This is crucial because sometimes listings end up in MLS systems outside of the local area, and local agents may not readily see those properties. By choosing a realtor with local area expertise, you can ensure that your property gets maximum visibility to potential buyers.

2. Property Knowledge

Property knowledge is another important factor to consider when hiring a real estate agent. A good realtor should understand the specifics of a property, including the type of utilities it has. This information is important as it determines the kinds of inspections and recommendations needed.

There have been instances where listing sheets provided by agents lack important utility information. For example, they may mention that the property is on septic, but fail to specify the type of water or the type of septic or sewer system. This kind of information is crucial for buyers to make informed decisions about properties they are interested in purchasing.

A knowledgeable realtor should verify all the information about a property to provide their clients with the necessary care, diligence, and expertise. As a consumer, you may not have access to the same resources and tools as realtors do, making it even more important to have a realtor who can guide you properly.

3. Negotiating Skill

Aside from negotiating the price and terms of a property, a good real estate agent should have excellent negotiating skills when it comes to navigating the nuances of a transaction. Understanding the subtleties and industry-specific requirements is crucial for both buyers and sellers.

For example, there are emerging insurance requirements related to the age of roofs and water heaters. If a seller is unaware of these requirements, they may struggle to make appropriate decisions when a buyer requests these items. There are also inspection-related items that buyers ask for, some of which are their own wants, while others are must-haves for obtaining homeowner's insurance. Additionally, appraisers may put conditions on the appraisal, requiring certain improvements or repairs to be made before the house can proceed to closing.

A skilled real estate agent can help buyers and sellers navigate these complexities and understand what is relevant in the current market. By categorizing requests and explaining the reasons behind them, a realtor can help both parties reach a mutually satisfactory agreement.

Conclusion

Hiring the wrong real estate agent can lead to several risks and pitfalls. Choosing an agent with local area expertise ensures that you have someone knowledgeable about the specific regulations and requirements in your area. Property knowledge is crucial when it comes to making informed decisions about buying or selling a property. A realtor with excellent negotiating skills can help you navigate the nuances of a transaction and ensure a smooth process from start to finish. Remember, the right real estate agent can make all the difference in your experience, so take the time to interview and ask the right questions to find the best fit for your needs.

Frequently Asked Questions (FAQs)

1. How can I find a real estate agent with local area expertise?

To find a real estate agent with local area expertise, you can start by asking for recommendations from friends, family, and colleagues who have recently bought or sold properties in your area. You can also search online for real estate agents specializing in your locality. When interviewing potential agents, ask specific questions about their knowledge and experience in your area to ensure they have the expertise you need.

2. What kind of property knowledge should I expect from a real estate agent?

A good real estate agent should have comprehensive knowledge about the properties they are representing. They should be able to provide details about the type of utilities a property has, such as water, septic or sewer systems, and electricity. They should also be familiar with the local regulations, restrictions, and architectural guidelines that may apply to different types of properties. Additionally, a realtor should be able to provide insights into market trends and the overall value of a property.

3. How can a real estate agent's negotiating skills benefit me?

A real estate agent with excellent negotiating skills can help you get the best possible deal when buying or selling a property. They can effectively communicate and advocate for your interests, ensuring that you are well-represented throughout the negotiation process. A skilled negotiator can help you navigate any challenges or disputes that arise during the transaction and work towards a mutually satisfactory outcome.

4. What should I do if I've already hired the wrong real estate agent?

If you have already hired a real estate agent and realize they are not meeting your expectations or fulfilling their responsibilities, it's important to address the issue as soon as possible. Start by discussing your concerns with the agent directly and give them a chance to rectify any shortcomings. If the issue persists or cannot be resolved, consider terminating the agreement and seeking a new agent who better aligns with your needs.

5. How can I evaluate a real estate agent's qualifications and track record?

When evaluating a real estate agent's qualifications and track record, consider factors such as their experience in the industry, the number of successful transactions they have completed, client testimonials or reviews, and any professional designations or certifications they hold. You can also ask for references from past clients to get a better understanding of their performance and level of client satisfaction.