A realtor is a person who acts as a negotiator between sellers and buyers of any real property. They can be described as a real estate agent or affiliated real estate professional who is a member of the National Association of REALTORS, abbreviated as NAR in short. These Realtors are located all around the world. Their mission is to conclude the deal between the buyer and seller, which earns them a commission. However, a Realtor can be termed as a bad Realtor, not that the person is bad but by just not putting much effort into promoting the property you would want to sell, or the property you want to buy. The real estate market is flooded with realtors looking to get your business. So how do you determine who to trust and who to kick to the curb? There are certain signs of a serious realtor who isn’t capable of finding your dream home. This article will guide you and educate on the signs of a bad realtor, why to hire a realtor and roles of a realtor in brief.
Key Points to Notice the Signs of a Bad Realtor
#1. Little Communication – You are definitely handling your issue with a bad Realtor if you haven’t heard from him for several weeks. This is considered to be the top signs of a bad realtor which clearly shows that he isn’t paying much attention to your concerns. It is your Realtor who should be suggesting, what to do if buyers aren’t showing interest in buying your home if it is for sale. Also, if you want to buy a home, he or she should be the one searching for properties you might like and scheduling appointments to check them out.
#2. Lack of Guidance – Only a bad Realtor offers its client little or no guidance. It is solely the task of the Realtor hired to provide expert advice based on research and knowledge of the local estate market. Your Realtor should suggest a listing price for your home that’s based on recent sales of homes similar to yours in the same vicinity, rather than quoting a price same as that to what you or your co-owner thinks of the house.
#3. Questionable Referrals – It is very common that your Realtor would be well acquainted with home inspectors and other professionals in their industry. So, beware of such agents and this is one of the signs of a bad realtor who insist you on working with the professionals only of the same company. In such cases, they might be expecting a referral fee in lieu of good service to you. Expect a Realtor who uses every possible tactic to attract buyers for your property and helps you the same when you want to buy a house either.
#4. Not Listening – Always hire a Realtor who is willing to listen to you and shows a sincere interest in your housing needs in order to fulfill those needs. A good Realtor will have suggestions on reworking your plans if your expectations and budgets don’t seem to fit the housing market where you intend to buy or sell the house.
#5. Insist on first-rate representation – Feel stuck with a low performing Realtor under a contract? You should definitely ask to part ways. Reputable Realtors would not want to continue a bad relationship. If things don’t work well this way either, then try talking to an attorney familiar with real estate laws to advise whether you can cancel your contract.
#6. The agent declines to allow a performance clause – It shows the signs of a bad realtor when your realtor declines to allow a performance clause. It is quintessential for a Realtor to walk into the meeting with a long contract, however, do not get dazzled by the scope and length of such contracts. The document you sign is as much yours as it is the agent. It is easy to get perplexed by a lengthy document, but the terms and conditions are negotiable.
A performance clause can be very simple. You can put a clause that if no buyers have requested to see the house in the course of the month, then the agent must schedule an open house. In order to make sure that your house is shown properly, you need to be specific about how often you want it shown and what constitutes a showing.
#7. The agent is inflexible when negotiating commission – When your realtor is inflexible when negotiating the commission, it shows the signs of a bad realtor. The accepted standard for the estate agent commissions on home sales is 6% ideally, however you can pay less. Usually, if you negotiate the price to a lower rate, you can expect a lower level of service, but surely you would want to specify that level of service in your contract before you sign.
This isn’t something to worry about as some real estate business even offer a menu of services at varying commissions. But it is important to consider the fact that, whether you are willing to put up your own signs and staff your own open size just to gun for saving money. If there is no problem in this, go ahead and set up the abbreviated service contract keeping in mind that both the parties are well aware of the services that will be contractually provided.
#8. You feel Uncomfortable – Always follow your instinct! Your Realtor should be someone you inherently trust, not some who you don’t feel right working with. Even if a particular professional is very skilled at the work he’s doing, is highly qualified and works very professionally, do not work with the Realtor if something doesn’t feel right.
Feeling natural and safe is very important in order to maintain the peace of mind in such financial matters. Putting unneeded pressure on you is also one of the signs of a bad realtor.
#9. Your agent is a shady character – Your agent taking a deep interest in your personal life and dramatically discussing personal issues shows lack of respect for you as a client. If the Realtor hides a lot of information and behaves shady during normal conversations then, you may be putting your home sale at stake. Contracts which aren’t written properly and don’t include all the clauses, withholding inspection information, or lying about bids can put your sale at serious risk.
Also, your Realtor is your representative, so automatically his or her public behavior will impact your reputation. So, this is also the signs of a bad realtor and do not hesitate to fire your agent if found guilty of dishonest behavior.
#10. Lack of Confidence & Belief – Confidence is a trait that Realtors possess naturally. Lack of confidence and belief is also considered as the signs of bad realtors. It is their confidence that makes you believe that they can sell your house. If your Realtor lacks confidence in themselves, then surely you have hired the wrong agent.
Now, this call for you to act smartly while hiring a professional. In order to check the confidence and ability of your Realtor, you should be well aware of the questions to be asked while interviewing a Realtor to be hired. By asking the right questions you should be able to determine whether a real estate agent has confidence and belief in themselves.
An example would probably explain this better, if you ask a prospective buyers agent on how would they help their clients and they start stumbling over their own words, it’s possible that they themselves don’t believe they can add any value to the home buyers they would help purchase a home. You shouldn’t have any soft corners for the Realtors while hiring them, it should clearly be professional.
#11. To Pushy – The sole purpose of hiring a Realtor before purchasing or selling your home is to avoid the stress you would undergo dealing with the process alone. So, if at some point the Realtor you encounter pushes you off your limits to make a decision, then the sole purpose of hiring them is lost.
If your agent pushes you to grant an offer of selling your home at a price way lower than you had expected, then you need to consider firing your agent.
Bottom line, if you feel like you’re being pushed to make decisions that you aren’t comfortable making, it’s possible you have hired the wrong Realtor.
#12. Seems Desperate – Desperate real estate agents should be strictly avoided. If your Realtor desperately suggests selling your home for 25,000$ more than any other real agent indicated than something definitely fishy. Extra caution needs to be taking while proceeding with such a Realtor.
A desperate real estate agent will tell the client anything which isn’t even true in order to buy the listing, which is one of the most common real estate pricing mistakes committed by the homeowners. A Realtor saying anything to make a sale is clearly a wrong Realtor you have hired.
#13. Lack of Marketing Skills or Web Presence – Having a Realtor hired with almost nil marketing skills and web presence can kill your home sale before it even begins. Only very renowned and professional Realtors understand the importance of the Internet and their websites in real estates along with strong marketing plans.
This search of hiring a Realtor with a strong web presence can be achieved by performing a simple search of your real estate agents’ name. Such an agent will not only have a well-constructed website but also several highly engaging social media profiles and pages.
Failing to find any web page or any other social media profiles for your real estate agent, should let you know that you have hired the wrong Realtor.
#14. Your Agent Doesn’t Do the Homework – Tight-fisted lenders have paved a rocky road for anxious home buyers in the post-recession, which is why it’s so important for buyers to have a financial ally in their agent. When you’re preparing to sell your home, says Glink, if your agent fails to do a Comparative Market Analysis- a process in which the Realtor tours your home, looks at homes similar to yours that have sold in the past three to six months, then suggests an asking price- please bid him farewell.
So, a good Realtor does his homework sincerely. If you aren’t ready to buy a home yet, a good realtor would wait and stay in touch with you to guide you through the deal when you finally decide to buy a home.
“You either qualify or you don’t, and sometimes life changes,” says Helfant. “A good agent bounces with that change”.
#15. Lack of leadership – Well an agent who agrees with you on everything and doesn’t offer any guidance isn’t the kind of Realtor you would be looking for. An agent who can give you honest advice based on their research and experience- even when you may not fully agree, is the right kind of Realtor who should be hired.
Why Hire a Realtor?
While all Realtors are also state issued licensees as agents or brokers, but there is a remarkable difference between them – Realtors have taken an oath subscribe to a stringent, enforceable code of Ethics with standards of practice that promotes the fair, ethical and honest treatment of all parties in the transaction. Hence, a Realtor is always preferred over a regular agent or a broker.
In addition to that, Realtors offer a wealth of training courses to their member Realtors, to help assure that Realtors serve their customers with the level of skill, knowledge, and attention to detail required in today’s real estate transaction.
So, won’t an individual seeking the help of a Realtor to represent you in a real estate transaction instead of a real estate licensee have more peace of mind and feel secured?!
The road to homeownership can be bumpy, and it’s often filled with unexpected tours and detours. So, no wonder having a real estate pro surely helps guide the way.
What are the Roles of a Realtor?
- Guide – Before you take a tour around your first home, the Realtors help you narrow down your search and identify your problems, unlike the real estate agents who take a lot of time to know about your property.
- Educate – A good Realtor explains the steps involved in the home buying process – in a manner that makes them understandable and paves a way to counsel along the way.
- Network – A Realtor who is familiar with the locality where you dwell in will be more acquainted about the homes for sale – even before they are officially listed. They might also have working relationships with other Realtors which might lead to smooth transactions with other trusted professionals.
- Advocate – Working with a Realtor result in their fiduciary responsibility being with you, which means you would be having an expert who would take care of your best financial interests, an expert who is contractually bound to do everything in their power to protect you.
- Negotiate – The Realtors will handle the details of your negotiation process including the preparation of all necessary offers and counter offer forms. Once this inspection is done, they might also help you negotiate for repairs.
- Manage minutia – Realtors take care of all the paperwork that goes along with a real estate transaction which can be quite exhaustive for the clients. A good Realtor understands the associated deadlines and details and can help you navigate these complex documents.
- Look out – An experienced Realtor abiding by all the rules can watch for troubles befalling on the client, like the number of pitfalls that can kill a deal as it inches towards closing.
So here the question arises, what is the Realtor doing to get a good price, negotiate properly and make sure the transaction happens without screw ups.
The real estate markets in the United States offer profitable investment opportunities that attract the audience around the globe. So, being the client all you need to do is choose the right kind of Realtor who makes your process of buying or selling your home smooth and safe.
Match the above key points before you hire a professional agent and have a sound sleep without having to worry much about the whole tiresome process of buying and selling a house.