Andrew Wetzel's Musings

April 24, 2019

Why I Enjoy Being a REALTOR®

After working in retail for a number of years I decided to make a change.  Like many, I was fascinated with Real Estate and made plans to get my license.  I did three things to prepare myself for the adjustment.  First, I started reading books about sales and then about Real Estate.  I read 12 books on sales and then 4 about working in Real Estate.  I stopped when the books got redundant and I felt that I knew enough to move forward.  Second, I selected 4 different Real Estate companies to contact and interview.  I found two of them interesting even though I was not yet ready to make a commitment.

The third step was time consuming but critical:  I wanted to try a sales position to make sure it was something I could enjoy before pursuing a career in Real Estate.  While many of us think it too easy to get licensed, it does require investments in time and money so I wanted to be prepared.  After becoming comfortable in sales, I was ready to commit to a Real Estate company.  The rest is history.

I took an extra step and became a REALTOR® which means that I belong to local, state and national REALTOR® Associations and subscribe to a formal Code of Ethics.  I have also taken many courses and earned several designations and certifications to improve my knowledge so that I can better represent my clients.  I consider myself an advisor or consultant rather than a salesperson.  As an Associate Broker I am allowed to call myself that whereas a basic licensee is not.  I work for sellers and for buyers, advising them and helping them reach their goals.  I view our relationship as a partnership although they get to make the decisions.

Like many, I had a mixed perception of “sales people” and did not want to use persuasion to convince people to do things that were not in their own best interests so that I could earn a living.  Sadly, I see people in different sales positions whose only goal seems to be to make money.  This can be especially problematic in Real Estate given the costs involved and the impact on people’s financial situation.

As a seller agent, I have enjoyed helping sellers move on in their life, many times helping sellers who had tried and failed to sell with one or more other agents.  Listing contracts typically “expire” as a result of over-pricing and/ or poor marketing.  People move for a variety of reasons and they need to determine whether the selling price or the length of time before selling is more important to them.  I have helped sellers who wanted larger or smaller homes, wanted a better neighborhood or school district for their children, were tired of dealing with tenants, who were selling estates of family members as well as other reasons.  I can assist a seller with the preparation generally required before we market a home and make it available for showings and offers.  There are many more details along the way than most sellers realize just as there are a variety of reasons for selling Real Estate.  All agents are not the same!

As a buyer agent, I have helped many purchase their first home, their next home or an investment property.  This can be very interesting if they are selling one property to buy another.  I enjoy showing people houses where they can begin a new chapter in their life or continue on their path.  Having children involved can make it more fun.  There are times when their children do not want to move and there are times when seeing children excited about their new adventure makes the process very fulfilling.  When people buy a home they are buying a lifestyle, making it a very important decision.

Helping clients these days is more complicated than it was during my first few years.  The Internet has changed things and it often adds confusion to the process.  It helps sellers by exposing their properties to the public and allows buyers to shop online for houses to consider.  It can be a great tool but it has its limitations, primarily for buyers.  Many buyers start the process by searching online to identify houses to consider buying.  That can be fun but it can lead to their paying less attention to the preparation required to make a formal offer to a seller.  Some buyers start by contacting a number of listing agents and looking at a number of properties.  Many can get overwhelmed.  Choices are great but can cause confusion!  A serious buyer needs to “position” themselves to be able to make a formal offer to a seller.  This is especially true in a competitive market.  Timing can be everything.

A buyer needs to get pre-qualified with a reputable lender to arrive at a price range for them to consider and determine their wants and needs, including locations.  Their plans will likely evolve but there should be a starting point.  If their market is competitive, any delay in preparing to make an offer could pose a problem.  Some buyers will find themselves unable to obtain the financing they need to make a purchase; others may need to do some work to get financing.  If they find out either after falling in love with a house that can be devastating not to mention being a waste of their time.

Even if there is only a slight delay in getting financing, that may allow a competing buyer to close an offer before they are even in a position to make an offer that a seller will respond to.  My best advice is to get pre-qualified and hire an exclusive agent before spending too much time “shopping”.  I also tell my clients that it may be best to ignore most of what you read online as most information is very general in nature and may have little relevance to any individual house search.

As with retail, I enjoy interacting with people and helping them navigate an endless variety of circumstances.  Unlike retail, selling Real Estate requires a longer interaction.  We establish deeper relationships with our clients than with a retail customer.  That being said, too many confuse the two types of purchases:  buying Real Estate is NOT a retail transaction.  Even if financing is not needed, a Real Estate purchase may take a few weeks and will generally include a number of “contingencies” that must be met to keep the process moving forward.  There are typically several points where either party may change their mind.

I believe that, despite the influence of the Internet or perhaps because of it, our role is more important than ever.  A professional, ethical and knowledgeable Real Estate agent was always expected to educate their consumer.  Today, I find that I often have to uneducate them as far as showing them that what they think they know may not be accurate and could be holding them back.  So much of the information the public relies on is incomplete or wrong.  While they may have access to date and information, I can provide knowledge and insight.  This does not always sit well with our clients.

I have seen a lot over the years.  In addition to working with buyers and sellers, I also teach other REALTORS®, I mediate disputes between agents or between buyers and sellers and I sit on hearing panels making decisions about possible violations of our REALTOR® Code of Ethics.  You cannot make up the things I have seen.

I have been protecting and promoting the best interests of my clients since 1996 and always tell people that, when you are planning to sell or buy Real Estate, there is no time for inexperience, empty promises or false expectations!

Remember:  HIRE WISELY!  We are not all the same!

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September 22, 2017

The Internet and Real Estate: a Bridge OR a Wall?

The Internet provides information 24/7 and has caused “disintermediation“, meaning that it has placed itself directly between the consumer and the Real Estate professional.  We helped divert or even push the public towards the easy access provided by the Internet by using a tight fist to control the information.  There was a time when you had to call us to get what you wanted.  They call that the “gatekeeper” model.

Now that so much information is easily (and often, freely) obtained without needing to rush to hire an agent, our role has been delayed but not eliminated.  Unfortunately, what should be likened to a “bridge”, meaning it provides useful and timely information to a consumer not ready to engage a professional but nonetheless curious, has becomes a “wall“.  The information should “facilitate” the process of buying or selling Real Estate by preparing people to take action but there is far too much misinformation and it is too easy to diminish the role that a professional Realtor should play in such a major undertaking.  Frankly, many do not know what they do not know and they too often waste time that could have been put to better use even if that means finding out that they cannot get mortgage financing!  Information is king but there is more to the process than mere words and anecdotes.  There is no substitute for experience.

HIRE WISELY!

Please read my other posts at WhyAndrewWetzel.com and visit my web site AndrewWetzel.com

September 14, 2017

Want to Sell a House? Think baseball!

You may not have read my earlier, related post using an analogy about buying a house and baseball (https://andrewwetzel.wordpress.com/2017/09/12/want-to-buy-a-house-think-baseball/) so let me state my premise:  analogies are a great way to make complex topics seem simple. Selling and buying Real Estate are NOT “rocket science” but, unfortunately, too many underestimate what they think they know when making what is typically the largest financial decision of their life.

Why baseball? There is no time limit and it has four specific reference points. Let me explain. Home plate is where you start and, if you are successful, you will round the bases and return home. Home plate is the goal and you can get there two ways:  you can successfully navigate each base (one at a time!) or you can hit one out of the park. In this analogy the fielders are obstructions that can stop you in your tracks or delay your progress. The pitcher represents “life”, tossing you the ball which is the opportunity to sell (or buy). In order to succeed, you need to reach EACH base and satisfy some requirement to move forward. By the way, in this analogy, a HOME RUN means finding your own buyer or giving your house away so you do not need to do much else.

First base:  having made the decision (or, unfortunately, being forced) to sell, you need to make the public aware that your house (or property) is available. Reaching “first base” means that you have hired a professional agent to market your home. That task is so much easier today because of the Internet but do NOT let that invention delude you into thinking that you have the ability to sell your own house! As you should know, there is a wide variation in terms of qualifications and expertise between agents but even the newest agent has hours of training and ample resources that a typical member of public does not. In addition, selling is one thing (it is largely based on price and value) while getting to settlement is where we earn our fee. So, your house is “on the market”, presumably you have a “For Sale” sign in place, your property information is in the MLS and being shared on countless web sites and you are waiting for people to line up to throw their hard-earned dollars your way. If only it were that easy!

Second base:  showing have started which, at the very least, suggests that people know your house is available and they are curious. If you are not getting showings you need to review your plan:  is your asking price competitive with your local market as far as location, features and condition? How is the “marketing”? You can spend countless hours and endless resources on this topic but it really boils down to two things: can agents find your property listing in their MLS searches and can prospective buyers find your listing in their online searches? If they cannot, you can reduce your asking price as far and as often as you wish but may have nothing to show for it if people do not know your house is on the market. Call me and I will share specific examples! Even if you are getting showings, you probably have no way of knowing whether the buyers are “qualified” let alone serious and you most likely have no idea who the agents are that are using your keys to walk through your castle. Showing your house is not fun and can be very inconvenient but it is necessary so most sellers prefer not to linger too long at this phase. To advance, you need to get offers to negotiate.

Third base:  congratulations! You have an executed agreement of sale. This means that you and a prospective buyer have agreed in writing to a specific price and to specific terms and conditions including inspections and a settlement/ closing date. The seller and buyer, with ample support and direction from their agents, have specific tasks to accomplish. Some are universal while others may depend on local practice. Either way, you both need to see to it that a composite list of items are completed before or, in some cases, at closing.

Home“:  hopefully both parties are satisfied and remain committed to the process, looking forward to the next phase of their lives without hesitation. This assumes that they worked out any inspection issues, that the buyer got their financing or has the cash to buy and that the seller is able to provide “clear title” (including removing any liens/ debt from the property). The process concludes with the ceremonial passing of the keys and the issuing of any funds due.

There will be times when the parties need to interact after settlement and those interactions can be unpleasant. The process leading up to and whatever happens after settlement often involve opportunities for disagreement and doubt, even in the smoothest sales. How they are managed depends on preparation and effort. You will get to re-evaluate the process from time to time so it is important to …

HIRE WISELY!

Please read my other posts at WhyAndrewWetzel.com and visit my web site AndrewWetzel.com

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