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Since October 2009
I get a ridiculous amount of information out of other agents at times. I can tell you it is much harder to get similar information out of a lawyer. Part of it is the inherent conflict of trying to close a deal; but I think more of it is many agents don't really understand their duty. Testing requirements are so low in every jurisdiction I have looked into...but there isn't much you can do to change it. Given that you don't get paid unless you sell something and the compensation amounts (the budgetary amount I throw around on here is approximately $750 per hundred thousand of value of house - though it may vary substantially depending on commission rates, splits with broker, out of pocket expenses, how good your accountant is, etc), I don't know that it would fly to have higher limits. A good portion of agents only get a license for themselves. Another substantial portion go in and out of real estate without closing a single sale. Figures vary state to state, year to years, but are consistently a decent chunk of agents.
I think the compensation structure should be changed, but it is there because it is the structure that meets demand well. Sellers do not seem to be willing to pay an agent unless their house actually sells. Buyers do not seem to want to pay commission for their agent on their side of the balance sheet. Agents need to make enough to cover the risks of 100% commission.
If agent scould truly be trusted there would be no issues regarding dual agency. The issue of agency in and of itself and the arguments for or against one form or another are clear examples of our industry telling the public not to trust us.
Steve, you mention that there are some "skeevy" agents out there. I would disagree and say there are many. But the real problem is most agents really do not understand that very often they are breaching confidences unintentionally even.
A listing agent who practices variable commission will often be looked upon as "skeevy" when it is discovered that one buyer paid less for a home than another offered. The same holds true when one agent cuts his or her commission to make a deal for a buyer they bring to beat a buyer from another firm. Are these practices "skeevy"?
While I agree that educational requirements are less than adequate, we do ourselves more harm with protectionist pratices and the continued use of terms, slogans and marketing lines that are simply false. Never did I hear an agent say it was a terrible time to buy. Never. I take that back. There are one or two here on Zillow who have said it more than once. Nor did our union leaders at the NAR. A day doesn't go by without a handful of agents right here on Zillow spouting off about how imprtant and valuable a buyer's agent is and how much money they save you. They do this without any concrete evidence, instead focusing on the fear element that the listing agent will rip you off if you don't get an agent of your own. You have to wonder were those money saving buyer's agent were just a few years ago, or how much are they saving their clients today in those markets claiming to be nothing but bidding war environments. Then there is the deceptive claim that buyer's agent are free.
There are fantastic real estate agents out there. I know, I have met two or three. The problem is the rest of them and our antiquated self-governing approach and expectations that ethics can be learned in a four hour classroom session.
Trust... hmmm... I think that goes both ways. There are plenty of buyers and sellers who just outright lie to a Realtor. But a lot of us just keep trusting the next buyer/seller b/c the good outweighs the bad.
Maybe you should ask your agent why they are in real estate. Those of us that are trained/educated to do other professions but choose to practice real estate are different. I'm not a salesperson by education; I'm a teacher. The practices I had in the classroom have taken me far in this industry. Listening, guiding, admitting when I don't know but I'll find out are just some of the things that I do w/every client. My clients pick the properties they want to see, I will stick w/them for years if that's what it takes, and I try to get them to stay in a payment range that doesn't make them house poor. And I tried to teach and do real estate but someone always suffered. Neither my students nor my clients had my undivided attention and I felt that I was always doing someone a disservice, so I quit teaching to devote myself wholly to real estate.
And as far as representing both parties... I don't do it. As hard as I may try to be nuetral, I am human and I'm afraid that I will show favortism toward one party over the other. I think that the buyers and sellers deserve their own representation - someone who is looking out for only their (buyer or seller) interests.
Trust isn't something that we can demand but we have to earn. If I have a client who doesn't trust me, then they probably have the wrong agent. I can't work under those circumstances anymore than they can.
Cindy:
I have found it equally challenging to get in touch with full time agents. If they are "full-time", they are probably doing showings or otherwise committed in networking activities. It is a pain when a professional in any industry does not respond in a timely fashion.
... and, it's free and anonymous
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Trust in the Real Estate Industry
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JamesMcNault
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Mostly, people have trust issues with agents because they primarily see them as salespeople. In fact, a survey about how consumers perceive the general trustworthiness of different professionals rate real estate agents lower than lawyers and, shockingly, somewhere close to gun dealers. They see them as smooth talkers who will say whatever is necessary to get the sale completed.
The problem is, like with other heavily commission-based professions, realtors are trained to be sales-oriented, as having this mindset allows them to close deals. Most would rely on this process and often, would act on their own best interests and ease, and not that of the client's.
So how do you gauge an agent's honesty? This is hard to answer. One solution is to try and speak with the realtor's former clients and do a short interview about their past transactions. They should be able to help you form a combined opinion of that realtor. Doing your own research on some of the data on the homes you're looking at, and then comparing your results with the agent's, can also help you determine how trustful you should be.
Aside from expertise and experience, a real estate professional's reputation should also be built on personal integrity. After all, mutual respect is required for any working relationship to be a success.
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