Blog : Representation

Lake Geneva Agent Representation

Lake Geneva Agent Representation

We know lots of things. We know that if we don’t cut our grass once a week it will grow too tall and too thick, and when we cut it after the week off we know that the cutting will be difficult. It would have been easier to mow it last week. Once in a while, it’s good to let it go and struggle through the off-week cutting, to remind oneself not to skip the lawn. In the same way, we know we should floss our teeth. It’s a good habit, this flossing. I floss, sure, but when sitting in the dentist chair I have to both admit it’s not twice a day and then endure the chastising reminder. Flossing, it’s good.

In the same way, there are certain real estate things that everyone needs to remember. This is your Monday reminder. In an attempt to make this exceptionally easy reading today, I’ll distill the reminders down to just one.  What I’m asking you, no, what I’m begging you to remember, is so simple. It’s nothing complicated. It’s not painful like mowing too-tall of grass, or annoying, like flossing stupid back teeth. It’s so easy, anyone can do it. Best of all, this thing you must do doesn’t cost you any money. In fact, it will likely save you money, and also save you from the heaps of shame that accompanies the forgetting of this thing.

In part, I blame the internet for the way it has made all real estate, and all markets, feel the same. When zooming over a map of a county on Zillow, all the consumer sees is a “market”. A house here for $4MM, a house over there for $400k. A house down the road for $1.1MM and one over here for $200k. The market, when viewed through the lens of a smartphone, looks small and quaint. In the same way, an agent in Middleton is the same as an agent in Madison, is the same as an agent in Milwaukee. It’s all one state, and it’s a midwestern state at that, which means it must be simple and it must be easy.  For the Zillow tells us so.

I’ll tell you a secret about Lake Geneva. When an agent has a listing that he or she knows is overpriced and/or a very difficult sale, guess what we hope happens? Of course we hope the listing sells. That’s our job, to work and to hope. But we really hope a buyer shows up who is tethered to an agent who isn’t from our market. Make it an agent from out of state and our eyes light up at the naivety of it all. A buyer working with an inexperienced agent, or one who isn’t from our market, is a buyer that will likely make mistakes. If we’re the listing side of a grossly overpriced property, we hope you make the mistake soon.

This is the problem, and this is the reminder. Stop working with agents that don’t know the market. It seems so obvious, so elementary. Yet the market is full of buyers working with agents who aren’t active in the particular segment they’re attempting to sell.  There’s a reason I don’t go to Door County and sell real estate on Thursdays. There’s a reason I don’t go to  Bayfield on Wednesdays and Elm Grove on Fridays. I’m pretty good at this real estate game, and I know my limitations. If I don’t know a market I’m not going to represent myself as an expert in that market. It’s just that easy.

If you’re a lakefront buyer seeking a Geneva Lake property, is it in your best interest to walk into a real estate office on a Saturday and sign up with the agent standing in front of you? Would you visit the walk-in clinic to have your kidney transplant performed? Real estate is not as complicated as surgery, but the analogy of a surgery taking place is indeed accurate in that real estate surgery involves removing too much money directly from your pocket. If you’re looking for a $3MM home in  Hinsdale, work with an agent who routinely sells $3MM homes in Hinsdale. If you’re looking for a $200k condo in Lake Geneva, work with an agent who routinely sells $200k condos in Lake Geneva. And if you’re looking for a $3MM lakefront home on Geneva, work with the agent who routinely sells $3MM homes on Geneva. And if you have a dentist appointment tomorrow, start flossing right now.

 

 

 

About Your Agent

About Your Agent

The business of listing homes is a curious one. If we were going about this business of finding a broker and an agent, we’d assume we’d look at our options objectively, hoping to secure the best agent to represent our property. But this isn’t what happens, because real estate isn’t really about results, it’s about friendships and loyalties even when those friendships and loyalties hurt the chance of a sale. I can’t list with this guy because he’s the best, I have to list with this guy because he’s also my son’s baseball coach and my cousin.  Objectivity is for more serious matters, not for real estate, or so it seems.

Every homeowner who is considering a sale knows how to go about searching for the agent that will represent the subject property. It’s typically a mix of internet searching, newspaper perusing, and lastly, checking the refrigerator, assuming it’s not stainless, to see who sent the most recent football calendar. Then, once the list is compiled, it’s time to interview these assorted agents. Some are from large offices, some small offices, some work out of Starbucks, mostly. Some are successful some are sweet, some are your son’s baseball coach who is also your cousin but we know he’s a second cousin, so that’s something to take into consideration.

Once the interviews occur, some agents are smug, some smell, others show up too early or too late. But there’s one agent who showed up on time and had a nice little suit on, and he spoke politely and he drove a car that didn’t have his name tattooed on the passenger and driver side doors. His name was Frank, and he seemed to be a good agent. His firm has some signs around the area, so you know he must be competent. Frank has a nice folder and some really cool brochures with incredible pie charts, also graphs. He has a separate folder, bound with rings, titled “HOW TO SELL YOUR HOUSE”. His picture is on the bottom left of the cover. He’s the one.

He hasn’t necessarily sold a lot of homes in your neighborhood, nor has he sold all that many outside of your neighborhood. But he returns your calls very quickly and he says yes ma’am and no ma’am and that’s enough. He’s hired and the sign goes up, Frank is the man. Your man. The best man, because he wasn’t smug and he wasn’t rude and he wasn’t really upset that your price was super high. He’s a good man, Frank. Things are looking up.

As a homeowner, you’ve done your homework. You vetted his company, you met him in person. You asked him questions. You determined he wasn’t a derelict. You’ve read his blog, “101 THINGS TO DO BEFORE YOUR FIRST OPEN HOUSE”. Frank, for all of these clues, seems to be a fine choice. But there’s one thing in choosing a listing agent that you haven’t yet considered. In fact, no one considers it, yet it’s the single most important factor in choosing representation. Do the other agents think your agent is going to sell your house?

Strange that this would be the question that matters most, right? Not really. It’s not something people talk about, and it’s not written on park benches. But the most important thing in choosing an agent is determining if your agent has credibility amongst the other agents in the market. Note I didn’t say that you agent had to be adored by the other agents, because that’s not it at all. Of course your agent shouldn’t be perceived as one who is difficult to work with, even there are plenty of agents like that. But this is about whether or not other agents think your agent is an effective agent.

The reason this matters is in terms of how quickly other agents will motivate their buyers to see your house. How quickly will they write an offer?  When the listing agent tells the buying agent that there are other interested parties, is your agent one who can be trusted? Not by you, remember, but by the other agents. This is the most important aspect of choosing a listing agent.  Hire the agent who the other agents worry about. Hire the one they know to be effective and clean. Does the market perceive your agent as an agent who is supremely capable of selling your home quickly? If so, hire that guy, or gal. If not,  don’t hire the guy you know because he’s your kids soccer coach. He might not even be your real cousin.