Blonds, Lawyers, and Real Estate Agents

How many real estate agents does it take to screw in a lightbulb?

Ok, I have not heard that joke yet, but I'm sure it is coming. The fact is, by "news magazine" standards, real estate agents are the new lawyers - deceptive, often incompetent, only out for a buck and largely unnecessary.

First let, me applaud the latest 20/20 episode for presenting some real estate topics beautifully - the benefits of home ownership versus renting, and tips for selling your home in a down market.

But the balance of the episode, in large part, dealt with why Realtors are , in some cases, nearly obsolete...in others, are pushing their clients to take deals they themselves wouldn't take. A panel of "experts" rattled off how Realtors have to have a lapse in conscience in order to survive; and my favorite, the authors (promoting their own book, by the way) who stated that using a Realtor assures you of getting a lower offer on your home.

Their example was a statistic that said that Realtors sell their homes for 3-4% higher than the general public, a fact which MUST mean they they counsel their clients to take low offers just to get a commission check. I have a different theory. When our clients have a solid offer in front of them, I cannot in good conscience counsel them to wait it out for a better offer. If they roll the dice that another offer will be higher, and if that offer never comes in, they are stuck. However, as a Realtor, I may be willing to assume that risk personally. I have always counseled my clients to work the numbers to a point that they have a bottom line fixed in their minds before the offer comes in - then the decision is mathematical and practical, not emotional.

There is no doubt that the Internet, and wide access to the MLS, has changed our industry. I have no problem with that. The brokerages that survive will be the ones that adapat and offer programs to their clients that work with the new capabilites, and don't try to resist them.

One final kudo to the show - in an effort to explain why Realtors don't care what the house sells for, they inadvertently pointed out that the average agent makes not 6%, but 1.5% after everyone gets paid. So instead of $24,000 paid on a $400,000 home, its more like $6,000, often for months and months of work. A drastic difference and one that is rarely discussed when it comes time to say Realtors make too much.

Regina Brassil, REALTOR, Buyer Agent
All opinions posted are solely those of the author.

When Considering a Home, Do All the Math

As a buyer's agent in Sarasota, I talk to alot of prospective home owners. Given the state of the market over the last 24 months, I can understand why many of them have chosen to adopt a "wait and see" attitude.

But there are several factors involved in the true cost of a home. One is, of course, the list price. This is the magic number that everyone seems to watch.

At this point in the market, however, the more important number may be INTEREST RATES. Most data seems to indicate home prices are near the bottom, and may begin to slowly creep up. But even if they drop slightly lower, if the interest rates are rising, you will pay more, long term, for your home.

Fact is , that over 30 years, the interest is the more compelling number. And getting the home for $10,000 cheaper is actually far less of a concern than getting a home at a good interest rate.

Last week, interest rates rose on data that home sales were picking up. These are both good indicators that the market may be ready to turn around. Don't let the interest rates quietly climb while waiting for another price drop which experts say isn't coming - it could prove costly over the years.


Regina A. Brassil, REALTOR
This article is the sole opinion of the author.