Seller Series: 3 Types of Real Estate Agents, and Which One Has Your Back
Let’s be real: not all agents are created equal. The barrier to entry to get a real estate license is so dang low. It’s frustrating. Did you know in the San Francisco Bay Area, 1 in 9 households has a licensed agent in it? Crazy, right? But since that is true, and we all know about six agents, you don’t have to feel bad when you make the decision to go with an agent who you feel will truly represent your home at the highest quality level and protect you as well.
It’s also true that 20% of the agents do 80% of the business, and those 20% are the experts in the industry. They are the career agents who study the stats like it’s their job (‘cause it is), who don’t have a side hustle to make ends meet, and who create processes and client journeys so your experience is professional and profitable.
Let’s talk about three types of agents you may see out in the marketplace, because I want you to be able to know you are getting the best of the best when you go to sell your home.
The Full-Time Agent
The full-time career agent is at the top of their game. Typically the best of these have an area they specialize in, making them incredibly adept at pricing strategy and knowing the strength of the buyers in the market so they know just how far to push during negotiations to get what they want. They are incredibly connected, having spent years building relationships with everyone you will need to work with when you buy or sell in the city of your dreams. They invest in your home to get it sold, and are typically savvy marketers dedicated to getting YOU top dollar, not just a paycheck. Full-time agents are building a business, with funds always ready to invest in your home. They are dedicated professionals with incredible social media and marketing skills that help your home reach more buyers and buyer’s agents. And because they are building a business, they have no backup career plan so YOUR success is part of their success. They care about how much your home sells for, in how many days, and how happy you are. They are entrepreneurs who serve homeowners and homebuyers—it’s literally their life. That matters.
Oh, and making sure you don’t get sued is at the top of every TOP agent’s list. The contracts that you are signing are complex and disclosures are imperative to protecting you when it comes to a large asset like a home sale. Full-time agents invest time in understanding the contracts inside and out so they can leverage them in YOUR favor and protect you from lawsuits.
Hidden Flaw: Be aware of any full-time agents who are at the end of their career and ready for a change, as they are less involved in the current pricing trends and marketing requirements of today’s buyers.
The Part-Time Agent
The part-time agent with a full-time “real job” is 80% of agents. Most of these agents sell one to two homes a year (I KNOW…), while the average agent sells six. Assuming they are “in the market,” they are often slightly out of touch with the current pricing strategies being used to net YOU more money, and are usually just hungry for a paycheck. They are also more willing to travel outside of their area to sell a home, making them less familiar with the community they are selling and the comparable home sales. (You know I always stress hiring a local agent). In addition they are less familiar with contracts, leaving you vulnerable to lawsuits. These contracts are binding, and you want an agent who knows how to give you airtight protection when you are dealing with a large asset like a house.
Because these agents don’t have a business to pull funds from, they are less willing to invest in your home. They often skip the full media packages—no video, no 3D tours, sometimes no professional photos (I am weeping)—all items that help buyers fall in love with your home online. And staging…you can kiss that goodbye, unless you pay for it. They’ll be less likely to work the open house, will have small social media followings, limited relationships with other agents in the field, and lack of negotiation prowess when it comes to contracts. (PS: our contracts are constantly changing, so we dedicate one day a week to reviewing contract language so we can be ninjas in negotiation settings. Part-time agents typically do not dedicate their time to sharpening those skills.) These agents also have a backup career plan, so your success isn’t as much of a factor since they aren’t dedicated to building a business.
Hidden Tactic: Part-time agents are typically willing to discount their fees. “YAY!” you say. “I’ll save 1%.” But the marketing and negotiating could cost you way more than 1% of your purchase price. Think of it this way: if your home is worth $800,000, and you save 1% using your friend’s brother as an agent, that’s $8,000. But he doesn’t stage it, the pricing is off, contract negotiation isn’t smooth, and you leave money on the table. Staging alone usually nets sellers 1.5% more than non-staged homes, which would be $12,000, just because your agent invested in staging. That’s a net of $4,000. Don’t step over dollars to pick up quarters.
The Tech Company Agents
The tech company agents are on salary and hired for a specific task related to the real estate sales process. They are less dynamic in their skill set, as they are part of a big corporation that makes its money on volume rather than individual client success. One person opens the door, another person handles the inspection, someone else works the open house, one person writes the contract—it’s an assembly line-like experience where personal service is often sacrificed. Days on market are typically longer, the broker-to-broker experience can be challenging as communication is usually lacking on one side, and pricing with out-of-area agents can hinder a successful home sale.
Hidden Fact: Take a close look at their pricing structure, as oftentimes full marketing is not included. Typically their contract protections are good, though.
Where Does That Put Us?
So where do we fall as top real estate agents in the greater Gig Harbor area?
Plop us in the full-time obsessive career real estate agent category. For us it’s a lifestyle…just ask our husbands and our masseuses who fix our text necks. It’s what we do.
Every agent at Neighborhood Experts is a full-time career agent building a business worth talking about. We believe in it so deeply that it’s a requirement to join the firm. As a local boutique brokerage we love our industry partners, contractors, and cross agents; we are dedicated to our community, pouring funds into local charitable organizations; and we are uniquely obsessed with modern marketing—so much so we have a full studio that is camera ready at all times.
Our agents specialize in a hyperlocal area so you can always be assured you have a true neighborhood expert who knows the comparable sales; they pour over the pending, sold, and active homes weekly; and they know the strength of the market because they are literally out there working in it. If we don’t know an area like the back of our hand, we will tell you so and recommend another rock star full-time agent who can help you succeed. We aren’t chasing paychecks, we are chasing your dreams. We can’t be experts in every city, but we know all the best agents.
We are constantly seeking new ways to serve our clients and community and bring more value to the experience. We also always learn to be better, from traveling to conferences with top industry insiders to weekly meetings with agents and lawyers smarter than us so we know the contracts, ensuring you are protected every step of the way.
In addition to being committed to knowing the areas we work, the homes being sold so we can price like a boss, and continuing to be black belts in marketing so we can sell your home for more money, we love what we do.
We wake up every morning and interview for a job we are damn good at (and our numbers don’t lie). How many jobs do you have to repeatedly interview for?
We stay humble when we compete for a listing and truly believe there is always room at the top.
We love our community of full-time agents that we get the honor of working with when we are on the other side of a cross sale. These true professionals make working in this industry a better experience, because although it’s a stressful business, it’s layered with incredible impact when we can exceed the goals of our clients AND give back to the community that supports our business.
To learn more about what we offer when you partner with Neighborhood Experts, read what the process of selling looks like with our team.
Hugs and Happy Hiring,
Paige Schulte (#1 agent in Gig Harbor *wink*)
Schulte & Co
Neighborhood Experts