"But on Zillow it says..."

There are some phrases that a Realtor will absolutely dread to hear.  I won’t bore you with the list but lately there are five words I’m hearing more and more…

“But on Zillow it says…”

Unlike like most Agents I actually like Zillow.  If you are confident in your value proposition and are able to articulate what your job actually is Zillow, Trulia and others are a great tool to be leverages by the industry and not discarded.  If your agent is threatened or annoyed by these services you may want to reconsider your representation and ask the tough questions to determine if you have the right relationship based on your needs.

Back to Zillow:

Pros

Education – I love the platform and the information it brings to consumers.  The service has engaged buyers and sellers.  This has made my job of searching, rating and viewing homes significantly easier and less time consuming.  The power of the search is now leveraged by the consumer so they can narrow the area, preferences and competition much quicker and have essentially taken this off my plate.  Educated buyers and sellers are much easier to assist through the process.  Their communication is faster, expectations are clear and delivery is smooth and progressive.

Exposure – The link from IDX feeds, syndications, websites etc. Is shared automatically and seamlessly in many cases.  One of my jobs is to expose the property to as many qualified buyers as possible.  The new technology of Zillow allows for this to be streamlined and simple.

Inconsistency – While most people view this as a con.  Agents should not.  Buyers and sellers quickly, through verification with an agent, realize that this site is a starting point and far from accurate.  It’s not designed to be.  It’s designed to collect money from advertising.  Accuracy is not the business model.  The inconsistency speaks for itself and highlights why an educated and experienced agent is absolutely necessary through the process. 

Cons

Accuracy – Consumers could either be pleasantly surprised or frustrated with the actual value of their home.  Again Zillow is paid to keep your eyes on the screen.  Not offer you a valuable accurate estimate and I don’t blame them.  It’s not easy.  Without the personal touch of a representative how could a computer know to adjust for all the intangibles of each property.  Lot location, pool, upgrades, fixtures, artificial grass, HOA, Age, Smell, Solar…the list is extensive and incredibly unique.

Crutch – Unfortunately I’ve also experienced the agents who will utilize this source similar to how a consumer would.  This has several effects.  One it gives horrible representation to their clients and allows for the negative reputation of our industry to continue.  It also makes negotiating a nightmare.  The lack in effort and diligence creates an ill-informed seller or buyer and a stubborn agent.

The Know it All – “But on Zillow it says…” This can be very frustrating.  No matter how much you explain, defend with comps or offer their opinion cannot be altered.  Zillow is right and you are wrong.

Conclusion:

Personally I like Zillow and am not threatened by this.  It saves me time and allows me to focus on what I truly bring to the table.  To each his own.

All agents and consumers should be ready and able to talk about…

“What Zillow Says”

Until next time.

Does the real estate agent you use matter??

So it’s been a recent trend lately, it goes in spurts, that I find out a personal relationship hires another real estate agent to give their business to.  While I don’t take this personal and understand all the scenarios about personal relationships, family members etc. it occasionally throws me for a loop…and here’s why.

The irony behind people wanting to use their brother’s friends, neighbor’s uncle who just got their real estate license to do them a favor is that the new agent is doing YOU a disservice by allowing you to be sacrificed at the expense of their learning curve.  Now this is not true in all cases but don’t kid yourself, the other agent smells the fresh license and you will likely take the brunt of rookie mistakes without ever knowing.

When I first started almost a decade ago it still astounds me I was legally allowed to do business.  Real Estate school is completely irrelevant to the real world and only consistent transactions, good mentors and time will combine to make a quality real estate agent.

So this sounds great in theory but let’s put some teeth to it.  In my recent real world example I had a past client who decided to use a family member in their late 50’s who was “trying a new career path”.  This was a big mistake to which I will never reveal to them.  Here is the break down.

The new agent undervalued my ex-clients house by $10,000 minimum.  They had multiple offers on the first day, sight unseen and cash in a market and area in which this is no longer common.  Now fast forward to the purchase of their new home.  They offered list price on a house that was on the market for 4 months, needed work, was a rental property and had been listed as a rental but not filled in over 9 months.  Needless to say they needed to sell.  The cherry on top was that I knew the selling agent from a previous transaction.  They could have purchased this house for $11,500 less and all they had to do was ask.  The seller didn't even want to negotiate, just wanted it gone.

I know this because my past client called me half way through the purchase and had a ton of questions that his “new” agent could not answer.  I politely answered while listening to the above story.

So what did this mean to my past client…

$21,000 in money left on the table (probably more). Over a 30 year mortgage at 4.75% this will cost them almost $40,000 out of pocket….and they’ll never  know the difference.

I’m not here suggesting I know everything or that you should even use me.  Whatever you do stop and think about the decision you're make and handle it with the care it deserves.  It will likely be the most important financial investment of your lifetime.