Monthly Archives: July 2007

No question about it. There is a lot of confusion over what exactly your real estate agent should be doing for you when you are purchasing or selling property. So if I may…

Regular House Agent’s Role

A regular house agent’s role is different than an investment property agent’s role. Today we will talk about the “regular” house agent. And before we get started you need to know that all real estate agents are independent contractors. They have a lot of freedom (within their brokerage’s framework) in how they run their businesses. So while these are my guidelines that I think you should consider, you may find an agent who works differently.

What a buyer’s agent does do:

• sift through homes for you that meet your needs.
• preview homes for you to save your time.
• help you to narrow the field to two or three homes.
• learn as much as she can regarding seller’s motivation.
• advise as to negotiation tactics and offer opinions.
• keep lines of communication open at all times during negotiations.
• recommend quality inspectors and title company.
• keep you on track to satisfy contract demands.
• follow up with seller’s agent to make sure seller is following contract demands.
• review Settlement Statement for compliance and/or errors.
• give you the keys to the house.

What a seller’s agent does do:

• show you accurate comps to your home.
• help you set a price that will sell.
• properly stage the home to maximize appeal.
• market your home using today’s technologies.
• remember that agent has a fiduciary duty to you and not throw you under the bus to “double side” the deal.
• help you to understand and evaluate feedback.
• help you to understand and evaluate offers.
• advise as to how to respond to offers.
• keep lines of communication open during entire process.
• coordinate inspections with buyer’s agent and set stage for renegotiations.
• work through inevitable renegotiations.
• make sure buyer’s agent is keeping buyer on track for closing.
• communicate with buyer’s loan officer at least once to make sure buyer is on track for closing.
• review Settlement Statement for compliance and/or errors.
• congratulate you on the next step of your life.

These lists are not all encompassing and many of the points should have several sub-points. There could also be a long list of what an agent does not do. Let me know if you think I should include something else.

Whether you are looking to sell a home in Olathe, Kansas or buy a home in Kansas City, Missouri you are probably asking yourself about the current real estate market.

With every group of people I meet the question is “How’s the market?” People want to know.

And so do I. Yesterday, I saw a couple of agents while I was out and about showing homes. When I asked them how the market was I got one “Great!” that seemed rehearsed and another “Well, I’m making a living. But that’s about it.”

IT’S NOT ALL ROSES OUT THERE but it’s not all thorns, either. A little history is in order here. During the great price run ups of the early 2000’s people got used to being able to sell their houses rather easily. Here in the Kansas City area we didn’t get the 20% appreciation rates they got out west and east. But we did get to the point where you could sell every year for 5%-10% more than last year. And sell it withing 60 days.

Today’s market is a bit different. It’s a “normal” market. Yes, despite what CNN and FoxNews tells you there is still appreciation here in Greater Kansas City. Yes, there are a few zip codes that have gone backwards. But not in a free fall fashion like parts of Cleveland. And yes, there are zip codes that have had significant increases, but not like Denver or Tulsa.

The key to selling your home today is proper pricing. Study the comparables carefully. Judge the condition of your house brutally and compare that to the SOLD houses. Where do you stand. Be honest, it will be the difference in whether you sell your house in 60 days, or not.

Don’t think that is possible? It is. Want proof? I can email it to you. Take a gamble and leave “negotiating room” and you will likely slip into that 4-7 month sales time range. Go ahead, argue with me. See how it goes.

Of course, buyers are loving life right now. Even if they sell their $150,000 house at a 5% discount they can pick up their new $235,000 house at a 5%-10% discount. See how they still benefited?

And selection, ah, the selection.

Real estate sales is an inexact science, at best. Take the house pictured at right. We started it off as a two bedroom. After a few months of barely any buyer views we converted the home back to a three bedroom, though one bedroom was pretty small.

Again, barely any buyer views. Then one day 10-12 days back I had 4 different agents show it in a 24 hour period and we accepted an offer.

Before that offer, over the course of 6 months I probably had 2 sign calls inquiring about the house. Since we’ve accepted the offer I’ve probably had about 10 calls inquiring about this Kansas City, Kansas home for sale.

I can’t explain it. I really can’t. I market all my homes for sale very aggressively and use nearly the same formula for all of them. Some sell quicker than others. And some generate more interest than others. But that’s twice this year, so far, that as soon as I get a house under contract I get quite a bit of interest.

I may never figure this business out in that regard.