Sep

11

Long Island Real Estate Market: Licensed Salesperson

Filed Under Sellers | Comments Off

It’s no secret that real estate agents are looked upon as “salesman”. It’s in our title as “Sales Associate” or “Salesperson”. The funny thing about the profession of sales is, there’s a lot more to it then what most people think. In the profession of real estate sales, am I really selling a home worth over $250,000? In the grand scheme of things, I am. But what really goes into being a real estate agent?

I decided to write this article mainly to allow readers to get an insight into who I am and what I do. I recently had a selling client, who I had been working with for over six months, decide they were going to now try and sell their home on their own. We had the home in contract early on in the listing period (we had an offer within the first month and another offer which they accepted within 50 days). My client decided to enter into an extended contract, which I consulted them not to do, given market conditions.

My main concern for them was the appraised value of their home. In this market, appraisals will change from month to month or say every 45 days. An appraisal that is done in May and sits around until the middle of July stands a very good chance of being reevaluated due to the declining market.

I am a professional in the real estate field. It’s part of my job to consult people when buying and selling their homes. My professional advice is given to better their chances of buying right (good terms, price, conditions) and selling for maximum dollar (providing good terms and conditions in the contract).

As a professional in the field – someone who understands the business of real estate – it is one of my key responsibilities to render analysis and professional advice about the market and the inner-workings of the business itself.

Getting back to my selling client, It’s important to note that they did not take my advice (maybe because I’m “just a salesman”). So they entered into an extended 3 1/2 month contract, the home was reevaluated by the appraisal company and…the home did not appraise for the agreed upon contract price. The buyers backed out and even though I immediately tried to have the home appraised by another lender and work with the buyers agent to “put the deal together”, the bottom line is, not only did the appraisal get reevaluated but…the buyers also reevaluated a purchase price of (in this case) over $350,000.

Think about that for a second. For 3 1/2 months, the buyers watched the price of gasoline go over $4.00. They watched CNN and other media outlets and kept hearing about the economy and all the doom and gloom associated with the news. Over 3 1/2 months, they lingered…waiting…with a future “bill” to placed on their shoulders of over $350,000 (mortgage). They saw energy bills, mortgage bills, and more bills, not to mention news of increasing foreclosures throughout the nation.

Three and a half months is a long time to think about things. And, in my opinion, they walked on this deal, putting their down payment in jeopardy, rather than buy the house. Their motivation for purchasing this home declined.

Now throughout this process, I kept in constant communication with the buyer’s agent. I called on a weekly basis. I spoke with my client’s attorney, as I always do, and also kept on the mortgage consultant for the buyers. From the beginning, I demanded an appraisal be done to assure the value of the home matched the deal. Unfortunately, the buyer’s agent and mortgage consultant never really understood the full picture – a down-side to this business that cannot be underestimated. Neither of them shared by cause for concern because, in my opinion, they simply do not understand the entire nature of the business.

I should note they have “years of experience” in the field. I’ve learned in any profession that “experience” is usually just a measure of someone putting in 1 year of experience and repeated that one year over and over. It’s scary to think, but I’ve worked with people who’ve been in the business over 20 years and I’ll have conversations with them about basic real estate “stuff” and it’s as if they’re learning the business for the first time. I’m all for learning. Life is a journey and you never know it all – but in your 20th year, I assume a 20 year “veteran” understands the relationship between an appraisal and a mortgage commitment.

Furthermore, being in the real estate business for “over 20 years” or whatever the case may be, you might think that a person would understand the psychology of letting a deal linger and how that may impact their ability to think decisively. In having conversations with the buyer’s agent in this particular case, the agent could not understand how their client could walk away from buying the house.

To me, it made perfect sense. However, I would summize that the agent never took the time to sit with her clients and go over the numbers, consulting them and helping them to feel better about their purchase. From all indications it would appear that the buyer’s agent never took the time to consult her client. This is sales. You’ve got to be ready to help your client make the right decision.

I can tell you this, not fulfilling a real estate contract can cost thousands of dollars, not only in terms of lost down payment, but also attorneys fees and other associated expenses. As their agent, I would have helped them understand the process, sending them articles to help assuage their fears of buying a home. And I wouldn’t do it blindly to “get the deal done”. I would do it professionally.

At the end of the day, I want to help people make wise purchase decisions about buying or selling a home. That’s a big part of being a Licensed Real Estate Salesperson.

(c) Copyright 2008, www.tommcgiveron.com

By Tom Mcgiveron Licensed Real Estate Salesperson

To contact me for a comprehensive analysis of your home’s value, call me at 631.831.9048.


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