Every agent does thirty transactions per year, sells millions of dollars, and is in the top 1% nationally, right? Right? Wrong. In Minnesota, the average agent does three transactions per year, at an average price of $327,560. Some agents also “buy” listings. Translation: they’ll tell you whatever you want to hear to get the listing. The result: you’ll be staring at each other six months later, having missed the market, and you’ll be an unhappy client. You’ll fire your agent, start over, and ultimately get less money than if you had done it right the first time.
There are a few key things that have been proven to distinguish top performing agents from underperforms. And remember, exceptional service isn’t cheap and cheap service is NEVER exceptional.
Seller and buyer beware if you encounter these red flags!
#1 The agent who recommends the highest price
All agents use the same data to price a house. That data comes from MLS and is based on actual sales. The data for your listing or comps for buying on Lake Minnetonka will come from Lake Minnetonka sales. Starting too high in price results in two things; a longer sales process than necessary and a lower sales price than if you had started at the correct price. Be very leery of the agent who “shoots the moon”. It rarely ends well for sellers.
#2 Part time agents/friends of the family
Simply put, real estate is a full-time job if you want to be an expert and do the best job for your clients. Part time agents don’t have enough real world experience to help you navigate the biggest sale or purchase of your lifetime. Family friends are not the best route either. Everyone has a best friend who got into real estate. If they’re new, or part time, or don’t do many deals, or don’t deal in your price point why would you trust them with the biggest purchase or sale of your life? Your responsibility is to protect yourself. Your agent’s job is to protect you. How can a new agent with no experience or a part time agent do that? Simply put they cannot. When it comes to Lake Minnetonka you need an expert. Not a part-timer or your friends kid who wants to be an agent but isn’t.
#3 The agent charges a lower commission
Good service isn’t cheap, and cheap service isn’t good. Paying market rate for listing your home, and expecting market value is fair to everyone. If an agent is willing to cut their commission from a fair market rate how hard do you think they’re going to negotiate to get you the best purchase or sale price? If that agent gets you a number you are happy with, and it costs you market rate, that’s a win for you. Do not be penny wise, pound foolish. Ever.
#4 You see the agents face all over third party sites like Zillow and others
Red flag! These are NOT the agents listings. The agent pays to have their face and information there. They may know about the neighborhood. They may not. They may do business in your price point. They may not. Do not be fooled by online listings. Interview the agent. Ask about homes they have sold in your price range. Assess their knowledge of Lake Minnetonka.
#5 The agent does not work with buyers or sellers in your price range
The more expensive the more complex the negotiation is. The more variables (waterfront, septic, sewer, large acreage) the more complex the negotiation. Make sure your agent has a track record in your price point.