Marketing

I wish to start this article out with a disclaimer — This is my opinion only and I do not speak for anyone else. I also know that these comments will probably generate some level of disagreement with those in my industry and I am OK with that.

So here goes…

My industry is filled with three types of people

• Realtors
• Salespeople
• Agents

Lets discuss the differences.

The Realtor

Technically speaking, a REALTOR is a member of the National Association of Realtors and is licensed either as a broker or real estate salesperson. A Realtor will (ok, should) always abide by the Code of Ethics and is versed in all of the complicated agency, disclosure, and fair housing laws as well as the protocol for how to handle the inevitable grey areas that lie on the edge many sticky situations.

I have been involved in many deals where the cooperating broker, a Realtor in the purest sense of the word, spent more time on protocol than they did on the analysis of the market value. Their client, in my opinion, made a poor financial decision.

That said, I have also been involved in deals where the cooperating broker spent very little time on the technical part of their craft (the Realtor side, if you will) and put their clients at risk.

It cuts both ways.

Understand that in no way am I criticizing being a ‘Realtor,’ rather I am simply pointing out a Realtor (once again, in the purest sense) sees their world and the conflicts that comprise it through the lens of very a strict interpretation of proscribed rules and guidelines. Sometimes this protocol focus ignores the larger picture.

It is unfortunate.

The Salesperson

In the real estate industry (or any commissioned sales industry for that matter) there are sales gurus.

Attend any Mike Ferry Organization or Brian Buffini seminar (or Matt Ferrara, or Ben Kinney, or any other one of many and, in the interest of full disclosure, I have paid to see them all) and you will hear their ideas on how to make more money.

All of the scripts, activity goals, scheduling, etc. are all designed to increase the attendee’s earning potential.

Usually, a combination of increased people skills, basic scripts, and a diligent commitment to prospecting for new leads (via calling people you know and/or those you do not) should lead to increased income. Their (correct) theory is simply if you find more people to talk to and do a better job of telling them what they want to hear, you will increase your income. More opportunities x more skills = more income.

But at who’s expense?

The true salesperson, while they are doing nothing illegal or even immoral, hold their own ‘lead generation’ activities in the highest regard. Many times the teachings of the sales guru strongly suggest to NOT take any phone calls other than those related to prospecting for extended periods time each day. Closing issue? Call you back at noon. Termite not ordered? Please leave a message. Loan package is wrong? I am sorry, but Mr. Salesperson is busy right now.

Needless to say, it is not a client-centric philosophy.

Am I saying you should NOT hire the salesperson? No. I am saying that don’t be disappointed when your salesperson acts like one.

When the metrics of deal count and sales volume become the sole measuring sticks of success, then the advice offered must always be questioned as to who stands to benefit most.

That said, I have always found that those who are busy are usually busy for reason –– they are good at what they do. I have also found that a certain level of detachment and objectivity from my advisor comes from a certain level of financial achievement. Much of the best advice I have ever received came from folks who had little need for my business. Any advisor who needs my business, well, I am not sure their advice is best for me, either.

While the advice from the true salesman should be filtered and vetted, it is many times very accurate and based on a great deal of experience.

The Agent

The agent is a combination creature who is part Realtor, part salesperson, and part trusted advocate. Agents get deals done.

An agent, in my opinion, has a loyalty to the correct outcome for their client.

Agents may be very aggressive and disciplined in their lead generation practice (like the Salesperson) but still hold their client’s interests above their own. Agents fully understand the Realtor Code of Ethics (like Realtors) yet manage to adhere to these principles without getting in the way of the best outcome for the client.  

At the end of the day, an agent will always try to help their client find the best available deal through the best available means.

An agent always asks themselves, is my client making a good decision? If they are making a bad deal, then they will try to talk them out of it.  If they are making a good deal, they will try to keep them engaged in it –– all of the while conducting themselves in a manner consistent with the Code of Ethics.

They likewise are successful enough to be able to give competent advice without their own financial pressures influencing the recommendations.

Conclusion

I think it is pretty obvious by my tone that I feel the best person to hire in a real estate transaction is the AGENT. A good agent, like a good attorney, accountant, insurance broker, or mechanic, is someone who will be in your life for a long time. I know that those clients who consider me their ‘agent’ call me constantly with questions as mundane as ‘do you have a good leaf guy’ to as complex as ‘help me understand the legal aspects of non-compliance in a mandatory HOA.’

The all-time great speaker Zig Ziglar once said (and I paraphrase) that if you help enough people get what they want, you will always be taken care of.  There is a lot of truth in that statement, especially in the real estate business. The ‘agent’ community in Richmond contains a great deal of talent whose ability to positively impact a transaction is robust.

Interview many and find the one who you would consider putting on your team for life.

‘Why do we need a Realtor?’

In my early years, I used to get offended by that question. Probably the main reason was that I didn’t really have a good answer. Uhhh … contract … MLS …. Lockbox … you need us!

 

But as I have aged in this industry, I actually have come to enjoy being asked the question. Why? Because it gives me a chance to educate the clients as to our role and the value we add.

I can cook, but I am no chef…

Sometime in the late 1990’s, as a thank you gift from a client, a personal chef came to our house and cooked a meal for us. It was the first time I met Ellie Basch.

Now, for those who have ever been on the receiving end of a Jarvis-prepared feast, we are pretty good cooks. I am not saying we are ready to compete on any cooking shows, but you will not feel cheated if you get to eat at Chez Jarvis. My wife’s tenderloin is restaurant quality and I am pretty adept anything grill related. So, as competitive as I am, I could not wait to see if the personal chef (Ellie) was that much better than we were.

Long story short, she was.

Ellie not only made us an absolutely awesome meal (and it was so awesome that we still use her for the One South holiday party some 10+ years later,) it was how she went about making it that was equally impressive. She made it in a stranger’s kitchen, wasted no food, created about 1/10 of the mess we would have and brought it all together at not only the exact same instant, but at the perfect temperature. Lastly, she did what would have taken us several hours and did it 30 minutes, tops.

In all honesty, it was not only fun to watch, it was a great life lesson about being an amateur and being a pro.

You can putt on my lawn, but it won’t be any fun…

I have another good friend who is the superintendent at an upscale golf course. Now, as he will readily admit, growing grass is perhaps the simplest form of agriculture imaginable. Everyone, at some level, can grow grass – seed + water + dirt + waiting – it is not that hard.

But just know this – golf courses, when at their best, are being pushed to their limits of health in order to create conditions most desirable to the golfing community. In key parts of the season, particularly the summer months, it his job to take the grass to the edge without killing it.

So imagine managing 200 acres to its limits each and every day, with multiple types of grasses growing in varied soils, varied shade conditions, highly varied air circulation conditions and varied moisture conditions all while trying to anticipate Virginia’s schizophrenic climate. If the National Weather Service gets it wrong by 5 degrees, especially during the peak summertime, you can kill an entire golf course.

Talk about pressure …

The short version is that my friend is equal parts scientist and artist.  He takes what are an infinite number of variables (nature) and makes sense of them all. He not only has to answer to himself, he answers to those who only see the results but rarely understand the constraints. His work is so good it is considered elite not just here locally, but at a national level.

And you know what else? He makes it look easy.

But real estate is easy …

For anyone who has even been through a real estate transaction, it can appear easy, especially if the agent you are working with is an accomplished pro.  Realize that the biggest part of the reason the transaction is easy is the advice they are providing and the work they are doing that you never see.

Doctors, mechanics, accountants, stylists, PR people, architects, graphic artists … and yes, chefs, golf superintendents and Realtors … we all do things that the public rarely sees and consequently doesn’t fully appreciate.  Yet thanks to HGTV, Zillow, Trulia, Houzz and Pinterest, the myth that real estate is a D-I-Y endeavor is perpetuated.

It is unfortunate because it is just not that easy.

So you can be your own Realtor, but should you?

It didn’t take Ellie 30 minutes to make my meal, it took her 10 years and 30 minutes to make my meal.

It didn’t take my golf buddy a few hours to lay out the protocol for maintaining green speeds on 97 degree days, it took him 15 years and few hours to lay out that protocol.

And guess what else, despite how it sometimes seems, it didn’t take me (or any other Realtor) a few hours to sell your home or find you the perfect home – it took us far longer.

The information and knowledge that we convey to our clients each and every day may seem like we just went to MLS and pushed the ‘meaningful statistic’ button … we didn’t.  Odds are the analysis we did was pulled from the latest market data and created exclusively for you.

While getting a real estate license is relatively easy, becoming a true pro is not. A good pro agent has a feel for values, trends, appraisals, incentives, geography, contract structure, marketing, data, analysis, competition, human nature, staging, design, construction, schools, zoning, finance, rental rates, law and negotiations (and yes, this is an abbreviated list.) We also have to keep up with changes in technology, continuing education, both local and national development and what goes on in Washington, DC.  It is not easy.

When a good agent makes a recommendation, it is based on far more than you can find on one of the thousands of websites dedicate to D-I-Y real estate.

Hire a pro. You will be happy.