I recognize the irony in an article about how to hire a real estate agent, being written by a real estate agent, so take the following with a grain of salt, if you’d like.
But more and more people are using Google to search “How to find a real estate agent,” or even “What should I look for in a real estate agent” so it only seems fitting that we address the exercise and provide our two cents.
As a real estate broker who has been licensed since 2004, who has been writing a blog since 2007, and who has a podcast appropriately called “The Last Honest Realtor,” I feel quite confident that I can play devil’s advocate for the readers here.
But before I point out some of the red flags that should make you want to run away from a prospective real estate agent, first, let me give you three five quick pointers characteristics of a real estate agent that many buyers and sellers don’t give enough thought to, or think about at all.
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A License Does Not Mean Knowledgeable or Qualified
Experience. We all started from zero, myself included. But I wouldn’t have hired me when I had been licensed for eight months, nor should most people consider putting the largest purchase or sale decision they’ll ever make in the hands of somebody who, respectfully, has no idea what they’re doing.
By the same token, there are a lot of real estate agents who have been licensed for forty years, but who only complete 1-2 transactions per year. Those agents would have served you well in 1998, but today, they lack the current market knowledge to accurately represent you.
Whether you plan to buy or sell, there are many reasons to choose Toronto Realty Group (TRG) to represent you. Discover a few in the posts below:
- How Toronto Realty Group Finds Deals for Our Buyer Clients
- Why Work With Toronto Realty Group To Sell Your Home?
- How Toronto Realty Group Handles Home Renovations For Our Clients
The Intangibles Behind the Transaction
Reputation. You can’t imagine how many intangibles go into “what makes a great agent.” When my phone rings, and it’s an agent I know and respect, it’s an entirely different interaction than if it was an agent I’ve never heard from, working at a brokerage I’ve never heard of.
This is a relationship business, through and through. You want to ensure that your broker is well-known, well-respected, and has connections throughout the real estate industry. While you might not “feel” the benefits directly, trust me when I say this matters. Quite often, the reason a deal gets done is because of the agent on the other end of it.
Look Under the Name on the Business Card
Brand. I feel as though buyers and sellers rarely consider this, but there is brand value in real estate. My brokerage, Bosley Real Estate, has been in business since 1928. It’s a traditional business model, a family brokerage, full-service, with a great reputation.
When a “Bosley” sign goes on a lawn, it has a different impact than when ABC Realty Inc. has their sign in the same place. The public might not know this, but trust me when I say that the first thing I do when I see a new listing on MLS is scroll down to see who has it listed.
Brokerages have a brand. Agents have a brand.
If you want to hire a fly-by-night brokerage to simply put your property on MLS, you’re missing the entire point of what an experienced, high-end, full-service real estate agent does.
More Is Better Most of the Time
Volume. I heard somebody once say, “I don’t want to hire an agent that completes fifty sales per year. I want to hire an agent who does two, because I feel like they’ll work harder!” Sure, I suppose that’s one perspective. But respectfully, it’s so misguided.
Truth be told, the agents who complete two deals per year are doing that volume because they can’t do fifty deals per year. It’s not because they’re seeking to do two deals per year! While I understand that some buyers and sellers don’t want to feel like they’re a “cog in the wheel” or simply “a number,” there’s a reason why experienced, reputable, successful agents complete a lot of transactions, and why inferior agents compete fewer.
What Not to Look for in a Realtor®
Personality. This might seem misplaced but just consider how much you’ll be working with your real estate agent, for how, long and how closely! This is a person you could be speaking to every day for a year, and the process is a lot smoother and more effective if you understand and accept your agent’s personality, work ethic, and professional style.
You need to have the utmost faith in your agent, and you have to establish trust as soon as possible. While some people would argue, “I don’t need to like my real estate agent; I just need them to sell my home for as much as possible,” that task is made easier when you and your agent form a bond.
Now, through my experience in the business, I’ve also developed a pretty good understanding of what not to look for in a real estate agent, as well as which “red flags” should send you running.
Again, feel free to take this with a grain of salt if you’d like, since I’m a full-service agent working for an independent, traditional brokerage. Real estate agents and brokerages alike are all free to work as they see fit.
But I see a lot of “gimmicks” out there, and I know what the end results are.
Here are a few…
“Guaranteed Sale” Pitches
Nothing is certain in life except for death and taxes, as the saying goes. And far less is certain in Toronto real estate, especially in this complex market we find ourselves in.
When you see, hear, or are told that there’s an agent who will “guarantee” you a price on your home, or the acquisition price on a buy-side, it’s nothing but a gimmick. After all, why would they do such a thing?
When an agent says, “I’ll guarantee you I’ll sell your home, or I’ll buy it myself,” do you really trust that? Is that person Mother Theresa? Or do they just have a gimmick to get you to sign up in the first place?
There are no free lunches in this business, and if something looks too good to be true it, it always is.
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Celebrity Endorsements
I’ve never understood society’s obsession with “celebrities,” but that’s just me. And when it comes to reality television “celebrities,” I understand even less.
When hosts of reality television shows see things die down, they often look for another way to generate income. Those who have appeared in real estate adjacent television shows will often look to leverage their brand by “selling” their name to real estate agents.
I obviously can’t name any names here, but I’ve been approached many times by former or current HGTV “stars,” who will let me use their name in my marketing – for a fee.
Really?
Does that impress the general public? You’ve got me fooled!
Other “stars” will create some sort of designation, award, or approval to sell to real estate agents. “David Fleming is a Bob Smith-approved Realtor,” a billboard might say.
I’m of the opinion that experienced, successful real estate agents don’t need to pay C-list celebrities to leverage their names.
This is a gimmick.
International Marketing
I’ve been on listing appointments before where the seller asks, “What are you going to do to market my property internationally?”
Sometimes I’m brutally honest and I just say, “Nothing.”
Real estate agents will routinely offer “worldwide exposure” as a competitive advantage that they offer the seller, and sellers will routinely buy into the ruse.
But I would humbly ask: what good is exposing a property in Toronto worldwide when we have a foreign buyer ban in effect?
Not only that, for those individuals who are permitted to purchase real estate in Canada, but who are not Permanent Residents, a combined 35% in speculation taxes apply at the municipal and provincial levels.
If you’ve got a $15,000,000 home and you want international exposure, fine. But if you’re selling your $600,000 condo or your $1,600,000 semi-detached home, and an agent says, “I can market your property worldwide,” see this for the gimmick that it is.
Off-Market Sales & Exclusive Listings
I would think that it’s human nature to “want something you can’t have.”
By association, consumers often put a higher value on something that’s not for sale, or isn’t readily available.
Many real estate agents will tell buyers, “I have access to a lot of off-market properties, so if you sign a representation agreement with me, you’ll get to see houses that nobody else does.”
Nonsense.
While experienced agents do come across these off-market opportunities from time to time, it’s not like Becky the Realtor has a database of 300 homes off-market that fit your exact specifications.
By the same token, many listing agents will soft-sell a homeowner by saying, “You don’t need to sign with me, and we don’t need to take your property to market. Just sign an exclusive listing with me, and let me see what I can do.”
This is often the agent’s “gateway” into the home as well as the first step in establishing rapport, trust, and eventually, a working relationship. I’ve seen some of these listing agents bring pretend-buyers into the house to show the sellers that they’re working behind the scenes, but it’s all just a gimmick for the agent to eventually say, “I think we work really well together. Let me take your property to the open market,” which is what they wanted all along.
Want more no-nonsense home selling advice? Keep reading the posts below:
- Why Do Some Houses Get Multiple Offers While Others Sit on the Market?
- The Worst Renovations When Selling Your Home
- Can You Live in Your House While Selling It?
The Non-Existent Buyers
Every homeowner has received those fake, handwritten notes in their mailbox where a property investor – who is not a real estate agent, offers to buy their home in cash, no questions asked.
But every so often, homeowners will receive a note from a listing agent who says, “I have a buyer for your home,” which is just as big a gimmick.
Very often, those fictional buyers will have names! “Barb and Randy are looking for a house in your area, and your home fits the bill,” the letter will say.
In reality, the listing agent is just looking to drum up phone calls, and while the house might not be right for “Barb and Randy,” the listing agent will look to establish rapport with the homeowners, and eventually look to list the property for sale.
These are just a few of a whole whack of classic real estate gimmicks that real estate agents will use in attempts to position themselves more favourably with prospective buyers or sellers, or to attract business in the first place.
In the end, it’s up to the consumer to cut through the nonsense, or get lured in, and believe the hype…
Do you want a real estate team with an actual track record in Toronto? Give us a call at 416.642.2660 or email admin@torontorealtygroup.com to learn more about the TRG difference today!
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