Local Data, Details and a Dose of Reality

There’s no question that the digital age has revolutionized the way buyers, sellers, Realtors® and other real estate professionals navigate the housing market. Yet surprisingly, while online research has increased over time, so has the use of Realtors®. 

Research by the National Association of Realtors®  shows that even though 92 percent of buyers go online to search for a home, the percentage of buyers who use a Realtor® has jumped from 69 percent in 2001 to 88 percent in 2013.  During the same period, the percentage of sellers who used a Realtor® rose from 83 percent to 88 percent. 

“The ability to go online for information and listings has transformed the real estate business, but our research shows that a personal relationship with a Realtor® is still very important to both buyers and sellers."

“The ability to go online for information and listings has transformed the real estate business, but our research shows that a personal relationship with a Realtor® is still very important to both buyers and sellers,” says Jessica Lautz, director of members and consumer survey research for NAR in Washington, D.C. “Buying or selling a home isn’t just a financial investment, it’s an emotional and psychological transaction.”

Now that Realtors® are not the gatekeepers of all property listings, buyers and sellers have other expectations of the services their agent can provide. 

Kelly Breeze, a Realtor® with Coldwell Banker Residential Brokerage in Arlington, says both buyers and sellers turn to a Realtor® as the calming voice in stressful moments during a real estate transaction. 

“As much as the world has become less personal and online interactions have increased, most people still want that personal touch, to talk to someone they trust,” says Breeze.

Buying or selling a home is a big life step for most people. They sometimes need counseling to help them decide when it’s the right time to take that step, says Karen Close, an associate broker with Century 21 New Millennium Real Estate in McLean.

EXPERIENCE EQUALS CUSTOMER SERVICE
Realtors® offer experience that buyers and sellers don’t have, says Christine Brown, managing broker of Avery-Hess, Realtors® in Tysons Corner.

“Most people typically only go through the process of buying or selling a home once or twice in their lives, but Realtors® do this every day,” says Brown. “We run into lots of possibilities and understand what can go wrong. A good agent can write contracts and negotiate on behalf of their clients in a way that’s advantageous to everyone.”

“Clients are looking for hyper-local, real-time knowledge,” says Bender. “Everything you read and use online tends to be backward-facing, sometimes with data from two months ago. Buyers and sellers want what they’re reading to be translated for them into current market conditions that can be applied to their specific neighborhood.” 

Susan Metcalf, a Realtor® with Avery-Hess, Realtors® in Springfield, says that only Realtors® have an understanding of the true market comps and knowledge of all the details that impact why one home is more valuable than another. This can help both buyers and sellers. 

“Our clients want someone to sift through all the information they have and to help them understand what pertains to their individual circumstances,” says Brown. 

Breeze says that 60 to 70 percent of buyers in Northern Virginia are from other parts of the country so they depend on Realtors® for their personal local knowledge. 

“People in Northern Virginia are extremely busy, so they appreciate having someone they can trust to deal knowledgeably with their real estate transaction while they go about their own personal and professional lives,” says Breeze. “It’s especially important that they know their Realtor® is keeping up with the nuances in writing and accepting a contract and with the legal changes that happen every year.”

Whether  working for buyers or sellers, an important role for a Realtor® is to keep track of the details, says Ann McClure, a Realtor® with McEnearney Associates in McLean. She says each real estate transaction involves an average of 27 professionals.

“The more moving parts there are, the more opportunity there is for something to go wrong,” says McClure. “I help my clients with every aspect before, during and after the transaction, including offering recommendations for everything from contractors to financial advisers.”

Close says that clients look to Realtors® for their negotiating expertise, since many people lack that skill.

“Some people have a psychological barrier when it comes to negotiating and lack the confidence that they are doing it right,” says Bender. “A big advantage you get when working with a Realtor® is that the agent should be able to inform you about how fast you need to move or how relaxed you can be in your negotiations.”

DOING THE BEST FOR BUYERS
While being a good advocate and source of information for your clients makes a difference to both buyers and sellers, some skills are particularly sought-after by buyers. Neighborhood knowledge about whether the homes are prone to radon or asbestos is one such area of expertise, says Metcalf.

“I also act as an impartial third set of eyes, to point out things like whether the amount of storage space will realistically meet their needs or whether they’re noticing the flashy new kitchen counter and not realizing that the cabinets are original to the house and have just been painted,” says Metcalf. “Buyers get starry-eyed over style, so I can provide them with the experience to show them substance rather than just style.”

Metcalf says Realtors® are more realistic than buyers and can talk to them about the difference in value between two similar homes.

“Sometimes you need to rein in buyers who said they wouldn’t live too far from work but keep expanding their search farther,” says Metcalf. “I have to tell them that the commute doesn’t seem so bad on a Sunday afternoon, but that they should test it out on a Monday morning before they make an offer. I give buyers a lot of advice to help them avoid buyer’s remorse.”

Bender says that while some buyers find exactly the home they want on their own, more often he can help them broaden their search.

“What buyers see online is often the totality of their experience, so I can help them find other neighborhoods and properties to consider,” says Bender. “I can tell them about things coming on the market that they might like. If they’re looking at condos, for instance and they find one they like, I can tell them that it’s one of the only ones in the community that doesn’t have an updated kitchen, so they might want to wait for another one to come on the market.”

Bender says many buyers get frustrated when they look at inaccurate value estimates online and find it hard to understand comps and values.

“A lot of comps don’t take into account things that matter a lot when you’re buying a home, such as the exposure or the landscaping,” he says. “A Realtor® can provide a lot of expertise in that area because we’ve seen so many homes.” 

Sometimes a listing that’s on a busy road or adjacent to a business will have a dramatically reduced value, says Breeze. Buyers often don’t understand that and then get frustrated that they cannot afford the more desirable homes in that neighborhood.

“A Realtor® can show them other properties that have some of the things that work for them but at a lower price point,” says Breeze. 

Bender says he thinks one of the best things he can do for a client once they’ve decided to make an offer is to advise about how to approach the purchase.

“I tell people if I think they need to go light on the home inspection or bid above the list price or if I think they can safely keep every contingency and underbid the asking price,” he says. 

PREPARING SELLERS FOR THE MARKET
While sellers want their Realtor® to sell their home as fast as possible and for the highest price, Realtors® provide a broad range of services to their listing clients.

“Ninety percent of the work that Realtors® do for sellers happens before the house even goes on the market, such as giving them advice on what to do to prepare their home for sale and making sure the photos are fabulous,” says Metcalf. “Sellers want an experienced Realtor® with an eye for detail, such as pointing out a soap dish that won’t look good in pictures.”

Breeze provides personal help with property preparations, even digging into the sellers’ landscaping while they spruce up the interior.

“Most people don’t live in their home as if it’s a model home, so it takes a lot of preparation to get it ready to sell,” says Breeze. “Even minor things can affect the value and the impression the house makes on buyers.”

Close says Realtors® can look at a listing as a product rather than a home, which takes the emotion out of prepping it for sale. 

“When I tell my sellers what they need to focus on to improve their home for sale, I also give them information about the great contractors I can recommend,” says McClure. 

Metcalf says that Realtors® can almost function as a general contractor when work is needed. Since they’ve vetted the contractors and use them often enough, Realtors® can often get their projects done more quickly.

Pricing the home correctly is another challenging part of preparing it for the market.

“Sellers don’t know how to evaluate their own home; we all think our house is worth more than it is,” says Close. “It’s easier for buyers to understand value because they’re out there shopping.”

Realtors® have the advantage of seeing the competition so they can help sellers understand the difference between their property and others that aren’t visible in photos or on a listing sheet. 

“I want my clients to be happy one year later, not just one day later, says Bender. Every client offers an opportunity to build trust and a long-term relationship.”

“I love to crunch numbers, so I’ll look at statistics forwards, backwards and sideways for my clients to analyze where prices are going and why,” says McClure. “One way I stay in touch with my clients for the long-term is that many of them want to know what their home is worth even when they don’t plan to sell it.”

Like most savvy Realtors®, McClure builds her business through referrals, so she explains to each client that her first objective is to help them reach their goals and her second objective is to make sure they have such a good experience with her that they will want to refer her to others.

Whether finding the perfect home for a buyer or clinching a contract for a seller, Realtors® are more than just a conduit to multiple listings. The combination of knowledge, experience and connections provides a critical link for creating satisfied customers. “I want my clients to be happy one year later, not just one day later,” says Bender. “Every client offers an opportunity to build trust and a long-term relationship.”

The Realtor’s® Critical Role
Surveys show that many homeowners and homebuyers are not aware of the total value that a Realtor® provides. Here are a few of the nearly 200 actions items typically performed by a Realtor® to help bring parties to the closing table.
• Research comparable currently listed properties.
• Prepare the Comparable Market Analysis to establish fair market value.
• Present CMA results to seller, including comparables, solds, current listings and expireds.
• Offer pricing strategy based on professional judgment and interpretation of market conditions.
• Present and discuss strategic master marketing plan.
• Review and explain all clauses in Listing Contract and Addendum.
• Discuss possible buyer financing alternatives and options with seller.
• Well water: confirm well status, depth and output from well report.
• Prepare detailed list of property amenities and assess market impact.
• Assist seller with completion of Seller’s Disclosure form.
• Prepare MLS Profile Sheet — agent is responsible for “quality control” and accuracy of listing data.
• Take additional photos for upload into MLS and use in flyers. 
• Create print and Internet ads with seller’s input.
• Prepare mailing and contact list.
• Prepare property marketing brochure for seller’s review.
• Advise network referral program of listing.
• Receive and review all offer to purchase contracts submitted by buyers or buyers' agents.
• Evaluate offer(s) and prepare a “net sheet” on each for the owner for comparison purposes.
• Negotiate all offers on seller’s behalf, setting time limit for loan approval and closing date.
• Advise seller in handling additional offers to purchase submitted between contract and closing.
• Follow loan processing through to the underwriter.
• Contact lender weekly to ensure processing is on track.
• Coordinate buyer’s professional home inspection with seller.
• Review home inspector’s report.
• Assist seller with identifying and negotiating with trustworthy contractors to perform any required repairs.
• Provide comparable sales used in market pricing to appraiser.
• Coordinate closing process with buyer’s agent and lender.
• Update closing forms and files.
• Assist in solving any title problems (boundary disputes, easements, etc) or in obtaining death certificates.
• Review documents with closing agent (attorney).

Michele Lerner, a freelance writer based in the Washington, DC area, has been writing about real estate and personal finance for more than 20 years for print and online publications.