Tim Thomas has given permission to Career Step Up to republish this great post on 5 Reasons Why not to Trust Your Real Estate Agent.
Real estate agents are among the most misunderstood professionals in the United States. Although this job is supposed to assist people in purchasing homes, most people think it ends with a scam.
Agents in the housing market are often stereotyped as self-centered and corrupt individuals.
Except for the strategies to persuade individuals to buy and sell homes, no formal educational background is required.
This article will cover five reasons why people do not like housing market agents and what do agents do and do not do that make people distrust them.
Why do Housing Market Buyers not Trust Their Real Estate Agent?
Although many people do not dislike real estate agents, most housing market buyers and sellers are annoyed by some aspects of their experience working with one.
While 89% of Americans say they distrust realtors to some extent, others say they do not trust real estate agents at all.
When you consider the current state of the industry, that trend is not surprising.
Also read: Must Watch Indicators for Real Estate Investors to Warn of a Housing Market Crash
You are more likely to work with a real estate agent who makes you wonder what realtors do to warrant a 5% to 7% cut of any transaction they are involved in than a top-performing real estate agent.
Although there are over 400,000 licensed realtors in the US, only 10% of them manage 81% of the business.
Below are five reasons why most people do not trust real estate agents.
1. Lack of Communication
Many agents, for whatever reason, do not respond to inquiries and messages promptly, and some do not answer at all. When it comes to the house buying process, contacts and customers have numerous questions.
While any agent can be busy with back-to-back meetings and presentations, there is no reason for not replying to any calls or text messages he may receive from the clients once the meeting ends.
Housing market agents are infamous for being slow in responding to various types of communication. Around 48% of real estate inquiries never get a response.
2. Lack of Respect
Many consumers have the impression that their agent is not listening to their needs, whether it is showing buyers homes that are not even close to what they are looking for or sellers who do not realize they have options.
Too often, real estate agents attempt to fit the client to the property rather than the other way around.
Another issue is that housing market buyers and investors feel that realtors lack punctuality.
While it’s understandable to notify a client ahead of time that the real estate agent will be a few minutes late, doing so after he is already late will show he is disrespectful.
3. No Transparency
Most people lack the vast knowledge and expertise that real estate agents possess concerning purchasing or selling a home.
They may be wary of entrusting what is likely to be a crucial investment in their lives to an outsider.
For marketing objectives, real estate agents are famous for exaggerating. About 75% of all current realtors lack the necessary knowledge to guide customers on housing market transactions.
Unfortunately, because of the high turnover in the real estate industry, most agents will never advance to full-fledged real estate professionals.
Also read: Housing Market Prices: Big Reasons Inflation Could Lead to Prices Dropping
Consider this: of all the realtors you meet in the immediate circle, how many consciously choose to become agents after completing studies?
The majority of real estate agents come from various walks of life, with experience working in different jobs for years.
For example, teachers, waiters, medical professionals, corporate executives, entrepreneurs, and so on, before deciding to pursue a career in real estate.
If the customers are approaching the real estate agents for help, however, find that the agent has done only a few real estate deals, it shows the level of trust customers should have in the agent.
4. Agents Are Not Tech-Savvy
To be on par with today’s consumers, real estate agents must have the ability to harness technology.
It involves more than having a smartphone in their pocket.
It also means using solutions for streamlining communications, operations, marketing, and sales, such as digital signatures, an up-to-date website, portal profiles, applications, and social media.
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Portals like Trulia and Zillow are tools that several sellers and buyers use as a starting point for research — and something customers will almost certainly ask the realtor.
Buyers may have already browsed the website before meeting the agent, and sellers may be eager to know about their home value.
Hence, real estate agents must be ready to discuss how these portals work and how they intend to use them during the property buying or selling process.
5. Not Enough Attention and Work
Being a successful business necessitates a great deal of effort. Starting a business, regardless of industry, will entail long hours and diligence.
One of the reasons people do not trust real estate agents is that they do not put in enough effort.
Real estate agents who are successful work unusual and long hours. Few successful agents work “banker hours” Monday through Friday from 8 am to 6 pm or more.
Also read: End of the Housing Bubble? 13 Predictors of a Housing Market Crash
Being a successful realtor requires working several nights and weekends and being reachable by email or phone almost 24 hours a day.
Customers may wonder why they must pay a commission to an agent if he cannot prove upfront the value the agent brings to the process.
Final Word: Why not to Trust Your Real Estate Agent
People do not like real estate agents for several reasons. Some of them are completely justified, while others are not.
Whether or not individuals despise real estate agents, most do not trust them to perform what they say they can do in deals.
The average real estate agent handles twelve real estate deals each year, and realtors that use technology effectively are few and far between.
Hence, the average real estate agent can find it challenging to gain the necessary experience and connections and learn the most effective techniques for convincing skeptical clients.
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Disclosure: The author is not a licensed or registered investment adviser or broker/dealer. They are not providing you with individual investment advice. Please consult with a licensed investment professional before you invest your money.
Tim Thomas / Timothy Thomas Limited has investments in real estate.
This post was produced by Tim Thomas / Timothy Thomas Limited and syndicated by Career Step Up.
Featured image credit: Shutterstock.