It’s probably just making small talk, but there are certain questions people seem to always ask professional real estate agent at holiday gatherings, cocktail parties, weddings, and even funerals.
So, with Thanksgiving just days away, here are a few of the questions that seem to be commonly asked… and why you shouldn’t ask them.
#1 “You still doin’ professional real estate agent thing?”
I know it doesn’t sound like a horrible question for any real estate agent. It probably isn’t a question people think twice about asking… just making conversation.
But it’s essentially saying you never expected the person to make it in the business as an professional real estate agent. Like you’d be somewhat surprised if they say yes.
It also inadvertently suggests that you don’t view it as a true career.
It’s a hard business being a professional real estate agent. It takes a lot to make a go of it. People do come and go quite quickly and often in the real estate agent profession. So it helps when agents feel the love and support of people close to them. And even though this question seems so innocent, it’s also one that cuts kinda deep without anyone even knowing.
I doubt many professional agents even think twice about this question. But I also bet it affects them more than they are aware.
But it certainly isn’t as bad a question as…
#2 “Why don’t you try and get a real job?”
Being a professional real estate agent may not be a job in the sense many people are used to. It certainly isn’t one that you just show up to from 9 to 5 and collect a paycheck at the end of the week.
People who are used to a “normal” job probably can’t fathom why anyone would be a professional real estate agent instead of working for a company that gives them a steady paycheck, vacation days, and sick time.
But being a real estate agent is a career. Again, it is a tough career to succeed in. Agents are often doing everything they can to stay positive and focused.
And if they’re focused, they probably won’t have an answer for the next question…
#3 “What’s your back-up plan?”
At this point, you get it.
Just. Don’t. Ask this to an real estate agent.
#4 “Do you have any listings that are good deals?”
Probably another question people are just asking to make conversation. But it implies you’d be interested in buying a house, if the professional real estate agent happened to have a listing that was a good deal.
If the real estate agents have listings, they can’t (or at least shouldn’t) be telling you it’s a good deal, or help you buy it at a price that’s a good deal. They should be representing their client’s best interest and getting the highest price they can for them.
But this question may just be a matter of not understanding what it means when one asks, “Do you have any listings…”
Just know that the professional real estate agent can, and certainly will, help you find a great deal that they are not the listing agent on. They can and will show you listings of another real estate agent just probably not their own. (Probably better that way…)
#5 “How’s the market?”
This is too broad of a question for any real estate agent.
The market is never entirely good, bad, or somewhere in between. It’s always good for some people, bad for others. How the market is depends entirely upon you and your needs and circumstances.
Not a bad question really. But it certainly isn’t one that an professional real estate agents can or should just answer flippantly. So if you ask it, maybe you should be prepared to get into your specific scenario so they can accurately answer it.
Too many people get flippant answers from professional real estate agents and base their perspective on the real estate market, and overall economy, on off-handed answers to questions like this.
#6 “How much is my house worth?”
This one goes hand in hand with the one above.
Being a professional real estate agent, I will have a fairly decent range in mind for what your home is worth if knowing the area and know your house.
But I can’t tell you how many times I’ve sat with someone to go over an analysis of their home’s value, and then they tell me they were told by several agents that their home is worth “$XXX,XXX”.
When I dig a little bit, it often turns out it was just in casual conversations at a get-together with an real estate agent. No analysis was done. A number was just shot out of an real estate agent’s mouth.
It’s funny how often people don’t trust or believe real estate agents. Yet when given a casual answer to what seems like a casual question, a homeowner often holds onto that “value” as if it was absolute truth.
In turn, homeowners often have a false sense of what their true equity is in their home, which in turn directly affects their perception of their wealth and net worth.
There’s nothing inherently wrong with these questions, but just know that if you want an accurate answer you should ask the professional real estate agent to truly roll up their sleeves and give you a good analysis and explanation. And that just can’t be done as they pass you the gravy.
Posted with permission from the original author, Joe Kerouac
Are you thinking about taking the FSBO homes for sale in farmington hills route for selling your house? Here’s something you should know about before you make a big mistake:
A home for sale in Farmington Hills, Michigan with signs that say “For Sale by Owner” (FSBO) are always the last one to get sold on the block. Why? As soon as people find out that a real estate agent is not involved in the process, they stop themselves from placing an offer. They are concerned about who is the point of contact. In the back of their mind, they assume that something is wrong with the house and this is why the house is being sold by the owner.
The question is: as a homeowner, why are you doing this?
Are you trying to save on the real estate agent’s commission?
You might keep a few hundred dollars in your pocket but the money that you will pay throughout the process for transfer, deeds, and liens will have your mind reeling. Most important of all, you might not be able to draft a professional contract for your FSBO homes for sale in Farmington Hills, Michigan, which will leave you vulnerable to loopholes that the buyer can take advantage of.
FSBO vs. Realtor
According to National Association of Realtors, 30% of houses found are through real estate agents. In 2016, 8% of the houses were sold by homeowners themselves. Around 51% of the houses are found on the internet, which shows how important it is to market your house on the right platform.
With that being said, let’s take a look at why hiring a real estate agent for your home for sale in Farmington Hills, Michigan is better than taking the FSBO route:
1. Selling Price FSBO Homes For Sale In Farmington Hills
FSBO – A house that is put on the market by the owner is typically sold for $190,000. There are a number of reasons behind it such as a professional not being present at the time of negotiations and failing to understand the lingo used in such meetings. There’s also a problem of trust, as buyers think they might be getting scammed.
Realtor – A home for sale in Farmington Hills, Michigan being handled by a real estate agent is typically sold for $240,000. The reason behind this increase in sale price is because they are able to compare your house to comps and convince the buyer that all the features in the house are worth the asking price.
2. Time on Market
FSBO – It takes around 88 days for a homeowner to sell the house on his own. Usually, the house sits 18 days to 3 weeks longer on the market than a house being sold by a realtor.
Realtor – A house can be sold by a real estate agent in 2 months or less. The time frame also depends on the features of your house i.e. whether they are trending in the market or not.
3. Stress on Seller
FSBO – FSBO-ers are always worried about one thing or another regarding the documents of the house. They are 70% more stressed than people who work through a real estate agent. They have to tackle everything themselves; the packing, the staging, the sale and moving.
Realtor – Realtors have resources, which they recommend to homeowners. From legal paper work to repairs and finance, everything is taken care of by someone else.
This is why working with a real estate agent is a much better option than taking the FSBO route. Not only are you stress-free but you make a pretty profit on the sale too! Before putting up your home for sale in Farmington Hills, Michigan on the market, why not get it appraised by experts. Visit Homes2MoveYou now and get yourself a real estate professional like me to guide you through the process. 248-790-5594
With home prices rising in many areas of the country, many people are worried that we’re headed for a housing crash like the one we suffered in 2008. But here’s the thing: it’s just not true. While it’s understandable that people would look at the current market, consider it a “housing bubble,” and assume it’s going to pop, the truth of the matter is the market today couldn’t be any more different than they were before the crash of 2008.
Let’s take a look at four reasons why we’re not headed for another housing crash:
1. Banks have tightened their lending practices
The biggest contributor to the crash of 2008 was risky lending practices. Financial institutions had extremely loose standards in terms of who they’d lend to; they were giving out mortgages to people with low incomes, bad credit, and who were unlikely to be able to pay their mortgage once their interest rates increased. Getting a mortgage was easy, regardless of your financial situation. While this made homeownership possible for people who previously would have needed to rent due to lack of income or bad credit, it also led to serious problems when millions of people began defaulting on their loans, leading to the housing crash and the ensuing economic crisis.
Today, those predatory and unethical lending practices have been completely overhauled. Mortgage standards are much more strict, and lenders are much more cautious in who they grant loans to and the terms of those loans. This has led to greater stability in the market and will prevent another crash like the one we experienced in 2008.
2. Fixed rate mortgages are the norm
As mentioned, a huge part of the housing crisis of 2008 was subprime mortgages. The mortgages given to the riskiest borrowers were adjustable rate mortgages. Once the introductory period was over, borrowers saw their interest rates skyrocket and their mortgage payments quickly double or triple in size, making them completely unaffordable and leading to mass defaults on loans across the country.
But today, while adjustable rate mortgages still exist, they’re significantly less common. Fixed rate mortgages are the norm. When people borrow, they know exactly how much their mortgage payment is going to be for the life of their loan. This allows them to assess their budget and only borrow as much as they can afford, making it much less likely they’ll default on their loans in the future.
3. Today’s rising prices are a supply and demand issue, not the makings of a housing crash
In 2008, prices rose rapidly because everyone wanted to buy property. Real estate experts called it a “mania” because so many people who weren’t able to buy property suddenly had the ability to do so. Purchasing a home in the US accelerated to a frenzied pace, which drove up prices.
But today, prices aren’t rising because there’s a flood of frenzied buyers in the market. Instead, it’s a supply and demand issue. People are staying in their homes longer, which means there’s less inventory available in competitive markets. When there’s less inventory, there are more people vying for the limited homes available, which drives up property prices. This kind of price increase is just a normal part of a competitive market, not a reason to worry we’re headed for another housing bubble.
4. There’s economic growth to support rising prices
Perhaps the biggest reason you don’t need to worry about the US heading for another housing crisis, is the fact there’s economic growth to support rising prices.
The reason the most competitive markets in the country (like Silicon Valley or Seattle, WA) are rapidly growing and showing historic price increases is due to economic growth. The most competitive housing markets in the US are the markets with the most opportunity. People are flocking to areas where there are jobs, stable economic growth, and opportunities for the future. Potential homebuyers want to purchase property in a place they know will offer them plenty of career and economic opportunities.
When there’s economic growth to support growing prices like there are in today’s hottest cities, it makes for a much more stable market—and a market unlikely to head towards a housing crash.
If you’re worried that rising housing prices are an indicator another housing crash is on the horizon, take a deep breath. The conditions in the market today are completely different from the conditions in 2008, and thanks to the changes made in lending practices after the crash and our booming economy, you can rest assured we won’t see a housing crash anytime soon.