Avoid The Ocean Of "Underqualified, Insecure And Dishonest" Real Estate Agents

"There are good reasons to be skeptical of the profession, but there is also plenty of confusion out there about what we are and are not responsible for." - Realtor Kira Mason

Since Fringe Finance has started, I’ve scoured the Earth far and wide to try and bring a perspective on real estate to the blog that is going to be both no bullshit and an unfiltered on-the-ground opinion that I know and trust (and could add value to my readers).

And to be honest, I didn’t have to scour much, as a good friend of mine is a brilliant up and comer in the world of real estate in Philadelphia. I’ve worked with her several times and have known her for years - she’s insightful, pragmatic, conscientious and has a serious pulse on the industry. I know for a fact that she eats, sleeps and breathes the industry.

As such, my kind friend, award-winning realtor Kira Mason, has agreed to drop in once in a while to offer up her take on the pulse of the industry for benefit of my readers. Kira runs the Substack Gritty City Real Estate, which you can read & follow free here and she is @kmasonrealtor on Twitter.

Today’s post - free to read - is being syndicated with Kira’s permission. She will continue to contribute exclusive content for Fringe Finance readers as well.

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Some Day Realtors Will Become Obsolete. Until Then…

In my four months of active Twitter use, I have gotten a good feel for the general public’s utter loathing of real estate agents.

Now, my Tweet-o-sphere isn’t exactly a random sampling of upstanding citizens, but the sentiment that they express is a valid one. There are good reasons to be skeptical of the profession, but there is also plenty of confusion out there about what we are and are not responsible for. There is also the tendency to homogenize us, as if we function as a single unit with a shared and devious goal. My aim is to help you channel your distaste towards that which truly deserves it.

Don’t fret, you won’t have to retire your pointing finger; I only want to make sure you’re aiming it at the right thing.

I will begin by straw-manning my own profession. It’s not hard to do; after all, we real estate agents jump through a low and relatively inexpensive hoop to get our licenses and are then promptly released into the wild to guide consumers through some of the most consequential financial transactions of their lives.

Pre-licensing consists of the memorization of a bunch of legal jargon, 95% of which is unlikely to ever be used again. There is little in our pre-licensing course that teaches us the bread and butter of the business, and so we learn on the job. Without proper support, we learn on consumers. The profession skirts an awkward line between salesperson and fiduciary; we are tasked with representing the interests of our clients without regard for our own pockets, and yet we don’t get paid unless a sale occurs.

In the vast majority of cases, the amount we make is a percentage of the price of the home we sell. There are no benefits and there is no salary, so we are entirely dependent upon transactions occurring. The incentive structure could use some work.

There are plenty of under-qualified, dishonest real estate agents out there; I don’t think I’m telling you anything that you don’t already know, or have at least suspected. But real estate is also the profession of honest, highly skilled, and experienced individuals who can make the buying or selling process easier, less risky, and even less costly. You just need to know what to look out for, what questions to ask, and what to value.

1. Honesty. This is the most important quality for your agent to possess. It is the foundation upon which everything else is built. You want to know that when your agent doesn’t know the answer to your question, he or she will say so, and promise to find out the answer for you instead of fibbing in order to protect their ego. They will then follow through. This is how experts are made, and it is also the foundation of any productive professional relationship. You want your agent to be honest with you about what’s actually going to get your house sold and not put up a charade of productivity in order to appease you.

   Kira Mason @kmasonrealtor

   Much of what agents do to "get your house sold" is a charade to make you believe that their marketing efforts are what results in a sale. Here's what really matters, in order of importance: 1. Price 2. Excellent listing photos 3. Professional listing description 4. Networking

   

   Ryan Lundquist @SacAppraiser

   Also, viral attention is meaningless without offers. Sometimes properties have worldwide exposure, but they don’t sell because the price is way too high. This just shows proper pricing is more meaningful than a ton of exposure. Clicks don’t always lead to offers.

   Real estate agents tend to be an insecure bunch - they want to prove their value because there is a part of them that doesn’t believe in it themselves. This is a mistake. While most agents know that many of their “marketing efforts” primarily do nothing more than project a certain professional image (and hopefully attract additional business), they tend to overlook the expertise they’ve developed over the years. Many consumers have surprisingly delusional ideas about what is and is not effective in any given market, and it really does take an expert who has seen it all to guide them through the unique pitfalls and opportunities available.

2. Fiduciary Duty. You want to know that your agent is there to serve and protect you, and not their own interests. What does this look like? Not hurrying you, not trying to convince you that a certain property is perfect for you when you feel otherwise, not feigning urgency. This agent is playing the long game. They know that even if it takes you a year to find the right place, if they serve you well, you will tell your family and friends about them and will use them again yourself. Important disclaimer: Different agents make vastly different choices about how “serious” a prospect has to be in order to work with them. Some won’t work with a buyer until they’re prequalified, for example. Some see 30+ showings as an indication of internal conflict and lack of seriousness. I personally am pretty permissive in this department, but I’m also on the newer side and willing to put in the legwork as long as I believe my client is truly serious. In my opinion, as long as an agent is upfront with you about their expectations and doesn’t try to coerce you in order to suit their needs, you’re in good shape.

3. Availability. Real estate doesn’t sleep. Your dream house might be listed at 7am on a Saturday. In today’s market, we can take a little bit of a more relaxed pace, but you generally want your agent to be available. Of course agents deserve time off, just like anyone else does, but they should have systems in place to ensure that your inquiries are responded to in a timely manner, and they should be upfront with you about their availability and what you can expect from them in terms of communication. Speaking of which…

4. Communication. Superior communication skills are crucial for this business. If your agent is sending you typo-infested two liners in response to your careful and detailed emails, how do you think they’re communicating with cooperating agents during negotiations? Professional, intelligent, prompt, and friendly communication goes a long way. How they talk to, text with, and email you is a good way to get a sense of their level of conscientiousness.

5. Expertise with clients like you. Professional expertise is important; you want to make sure your agent has been around long enough or at least has the appropriate support to handle any of the many curveballs that can come up in the course of a real estate transaction. But more specifically, they should be familiar with the specific submarket that working with you would put them in. Are you an investor looking for a fix and flip opportunity? They should know how to analyze a deal, and ideally be an investor themselves. Are you a first time buyer looking to purchase in a particular region? Your agent should know the area well, and be accustomed to guiding first time buyers through their first transactions. One important addition: expertise is important, but I’d say it’s secondary to honesty and conscientiousness. An agent with the right attitude can and will collect all the information they need to serve your needs, and they will be upfront with you about what they are and are not experienced in. They will then leave it to you to decide whether they’re a good fit.

6. Negotiation skills. Many agents invest considerable time and effort into refining their negotiation skills. This is an area in which consumers tend to have misguided ideas about what will be effective. Every submarket has its norms, and knowing where to adhere to these norms and where to throw curveballs and make big asks is an art that is developed with years of local experience. When it comes right down to it, market-sensitive negotiation skills can save you money on either side of the transaction.

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Many consumers don’t appreciate the complexity of a real estate deal, and see it as akin to the transfer of any commodity. This simply isn’t so. Unless you’re prepared to…

• Independently analyze contracts and know how to protect yourself with them

• Identify deals based on in-depth knowledge of your specific submarket

• Know when to pass on a deal that looks too good to be true, and why

• Work with title on the ordering of the appropriate city certifications, payoff statements, tax certifications, and more

• Know how to give just enough to get the desired results, and not a step further

• Ensure that all moving parts are progressing at a pace that will result in an on-time and successful settlement

• Negotiate in a way that will get you the best possible deal

…then you’re not prepared to buy or sell real property on your own. It can be done, but there’s a good chance you’ll leave money on the table and/or encounter a curveball that will require you to seek legal counsel.

Just as there are bad teachers and bad accountants, there are bad agents who will lie and manipulate their way into deals, and they are utterly miserable to work with, whether you’re their client or a cooperating agent. But even these agents cannot be blamed for the hyperinflation of the last three years… a mystifying assertion I’ve seen repeatedly on Twitter. That’s simple supply and demand. Even if you have nothing but saints on every side of the transaction, the home buying fever of the last few years paired with low inventory would have resulted in rapidly increasing prices. That’s what bidding wars do. It is the listing agent’s responsibility to navigate these bidding wars to get their sellers the best price possible, and it is the buyers agent’s responsibility to support the buyer’s interests, which is to pay just enough but no more than is necessary to get the home they desire without exceeding their own personally imposed limits. What we primarily saw during the housing boom was buyers who willingly offered aggressive numbers because they had fallen in love with a house, and with record-low rates, they found they could afford it.

I suspect that real estate agents will someday become obsolete, or at the very least have their role substantially altered, but we are far from having technology that can effectively navigate the quirks unique to each submarket and close deals securely. A real estate transaction is a complex and multi-faceted beast, and there is a reason that even agents who have been in the business for decades still have room to grow. There is an infinite amount to learn when it comes to serving our clients, and this expertise cannot be attained overnight (nor, as of yet, replicated by an algorithm).

Today, in 2023, having a skilled agent by your side is an absolute must, but you’ve got to choose wisely.

About Kira Mason

Kira is a realtor with Berkshire Hathaway Fox & Roach and The Kevin McGillicuddy Team, winner of the 2021 Chairman's Circle award and ranked within the top 1% of the national Berkshire Hathaway HomeServices network. She independently won Homesnap's "Fastest Growing Agent" award in 2021 and specializes in the purchase and sale of residential real estate in Philadelphia. 

Kira runs the Substack Gritty City Real Estate, which you can read & follow free here and she is @kmasonrealtor on Twitter. She can be reached via e-mail at the address: contact@kiramasonrealtor.com.

QTR’s Disclaimer: I am an idiot and often get things wrong and lose money. I may own or transact in any names mentioned in this piece at any time without warning. This is not a recommendation to buy or sell any stocks or securities or any asset class - just my opinions of me and my guests. I often lose money on positions I trade/invest in. I may add any name mentioned in this article and sell any name mentioned in this piece at any time, without further warning. Positions can change immediately as soon as I publish this, with or without notice. You are on your own. Do not make decisions based on my blog. I exist on the fringe. The publisher does not guarantee the accuracy or completeness of the information provided in this page. These are not the opinions of any of my employers, partners, or associates. I did my best to be honest about my disclosures but can’t guarantee I am right; I write these posts after a couple beers sometimes. Also, I just straight up get shit wrong a lot. I mention it three times because it’s that important.