There is a common perception that the real estate agent has a lot less work to do today, thanks to technology and the Internet. Buyers are able to "shop" online and easily identify properties that nay be good prospects to purchase.
But if you were to ask any real estate agent this question: "now that the Internet allows buyers to find their open houses, isn't job of the real estate agent much easier?" you mighty be surprised at the answer.
Many deals are constantly under assault by any one of a number of issues that seek to interrupt the process. Delays stem from a number of sources, many of which are out of the real estate agent's control, but require action on behalf of the agent to resolve.
Any one of a combination of these items can lead to trouble in a transaction:
- Title issues. With all of the foreclosures and short-sales, getting clear title can take a lot moiré effort, and there may be delays. The most common severe delay on a foreclosure sale is a Federal tax lien, which is not extinguished by the legal proceeding. This can take up to 120 days to resolve.
- Appraisal issues. Lenders are more cautious than ever regarding the validity of appraisals. While most buyers want to see an appraisal much higher than the contract sales price, some lenders see an abnormally high appraisal as a red flag and may ask for a second opinion, causing delays.
- Documentation variances. The loan officer may have sent a complete application, but at the last minute an underwriter may ask for additional documentation before issuing a "clear to close." Sometimes these documents can take some time to produce, leading to delays in the delivery of the loan funds.
- Audits. Many lenders are performing audits on the day of closing, including verification of employment, verification of funds, and may pull a new credit report. Explanations may be needed to complete the closing of the sale.
- Logistics. The fact is, that houses are taking longer to sell, and many sellers have already moved and there may be delays in getting everyone to perform in a timely matter. You would think that everyone would try to get on the same page to expedite completion of the sale but sometimes it's difficult to get everyone working together!
Property issues. The longer that it takes to close, the more likely that the property will develop a problem that affects the buyer's desire to purchase. Air conditioners may stop working or someone might break into the house and steal fixtures and appliances. These issues can always cause serious delays.
The good news is this: The real estate agent works diligently to intercept all of these problems and spends hours or days "putting out fires" to move the transaction along to completion. The goal is to make the closing as seamless as possible for both the buyer and the seller.
It takes a lot of work to get the job done correctly, more than you can ever imagine. And despite all of the technology, the job is more difficult now than ever. And when your deal goes smoothly, take the time to pat your agent on the back.
They have done one heck of a job!
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All content, including text, original art, photographs and images, is the exclusive property of Coweta Fayette Real Estate, Inc., and may not be used without the expressed written permission of Coweta Fayette Real Estate Better Homes and Gardens Metro Brokers, Newnan Georgia. All information is believed to be accurate but is not warranted, Copyright 2003-2009. Richard Weisser REOS, E-Pro. licensed Auctioneer. 770-827-6225.
Learn more about Coweta County and Fayette County Georgia Real Estate, and to search the entire Georgia MLS for free with no registration required. Visit CowetaFayetteRealEstate.com! Photos of the Great Smoky Mountains National Park. North Georgia Photos.
Good morning Richard, and I see your wonderful photos are back up and running! Looks wonderful!
Very good information, it is not like we just sit and wait for the check to come. For instance, I am listing a great little home on the lake here, will be in the MLS either today or tomorrow. Meanwhile.... I am
The owner is absent, and will not be returning again. This is on top of all the usual....
So true. I'm seeing many more issues with mortgage, title, etc that never use to come up. Our forms community have made changes to cover most of them. Now, I don't have put those into an addendum.
Richard - Nice post to educate and make clients aware of what is happening in the background.
Andrea...
And because we have a longer contract to close times, that's more times we have to take the clients to the house to "measure" and "check" and just look around. They are anxious to purchase, and need reinforcement all along the way!
And you are right that we have to be proactive most of the time to demonstrate that it's no big deal ... but it sure makes demands of our time.
Thanks for an excellent comment.
Good points. People do believe that it is an easy job. Had a guy ask me last week how quick he could get a license so he could make money....
We are seeing multiple contracts on many properties. There is no question about agents earning their keep in these situations. And, most of the agents that handle short sales not only work hard but experience extremely high levels of stress while helping their clients cope with the transactions.
Follow me on Twitter: http://twitter.com/roykelley
Mark...
For the first time in years we had a mid-year change in our Georgia forms. That is a true indication of how fast the industry is changing. Thanks.
Claude...
And I tried to leave out the obvious stuff the the client knows about ... negotiations, inspections etc. The work load on a sale now id tremendous!
Gary...
Tell him that I'll sell him mine! lol and thanks.
Great post and very informative.
In my area homes are getting multiple offers within days. The listing agents are just not even bothering to get back with those that have submitted offers. It is very frustrating for all parties involved.
Not quite as easy as getting licensed and getting a check right away.
Nice Post Rich, unfortunately the perception out there is that we sit back and collect a commission. It's always been this way and unfortunately I think it will always remain. It is only when a problem occurs that the Clients involved see our worth.
You just described my life. IT is incredibably difficult to get to the closing table. Having a contract is not as joyful anymore because you never know if it will appraise, how long the lender will take, and all of the above.
It is even more important that sellers and buyers have patience and a good experienced Realtor especially with short sales.
Great point. Any agent today will tell you they are working twice as hard for half the pay. Do we love it?... yes Is it hard? a resounding yes.
Technology is a funny thing, it does makes us more efficient and it frees up more time, but I think most people are still trying to fit 10 lbs of you know what into a 5 lb bag.
We all work harder now than we did before. Yes technology has been great for the business. This comes with a financial and time cost though. It is expensive and time consuming to remain educated and equiped with the latest technology.
We do wear many hats in the transaction. My slogan "Done Deal with Delia." I have closed everyone since that time. Every deal has its challenges.
Rich, Good post with lots of great information. Not only do we work harder but who said work was suppose to be easy anyway. Some think that the listings get posted on line magically. As great as technology is you have to learn to use it and put in the effort to get the information out there to be seen by those looking to buy. Is it a great tool - absolutely. It is also work - absolutely.
The rules seem to be changing hourly, so just keeping up is work. In one way i am glad. The days of minting fresh realtors to pick low hanging fruit is over. The strong, educated, flexible, and dedicated Realtor will do even better.
You hit it on the head, and probably then some. You might also have mentioned the property management work we do when the seller has moved away and asks us to keep an eye on the place and please try to keep it clean.
And yet there are still people that think they can do this in their spare time. Nice post.
Richard: I hear you. I know I couldn't do your job. These days the deals seem to not only take longer to do but they're also more complex. I wish you well; better days and easier times are just around the corner!
I can't honestly say that my practice has changed one bit in terms of contract management. Experience counts more than ever before.
What has changed is the marketing pressure due to the severe contraction of the market. However, we're in trining now for the future.
Hey, that's a good subject for a post. Mmmmmm.
Yes...we Realtors are working very hard, harder than before and for less!
Great post and great photos.
Thank you,
Patricia Aulson/Portsmouth NH Real Estate
I agree with you Rich. If you as the homeowner feel as if nothing is getting done, then actually you are better off than most. This means you Realtor is handling all the behind the scenes problems to ensure a stress fee and smooth closing.
OMG this is the most true statement I have read all day. It is two to three times more difficult to get a deal to closing and we make less then normal.
Right you are, Richard.
A big part of the problem is the misconception that buyers have had for a long time regarding our services. And, unfortunately, NAR has done nothing to combat this misconception.
The misconception is that the bulk of our work is in finding and showing houses.
WRONG! In fact, that has always been the easy part... in fact, education and a license aren't needed for those minor services.
Any chimpanzee with a driver's license and thumbs can operate a car, open a lockbox, take out a key and open the front door of a house.
Our WORK and VALUE is in everything else we do.
It is like the surgeon who gets paid an astronomical amount of money to perform an appendectomy...
Does he get paid to cut you open and remove the appendix? NO! He gets paid for know where to cut and how to keep you alive!
I have been lucky to this point with appraisals, though some of our agents have not been as fortunate. A couple years ago you did'nt have to hold your breath for such, nor the lender changing it's policy daily and the clients that qualify no longer can get a loan due to lender changes.
Hi Richard:
HOW TRUE! There are no easy deals in this market.
Every step of a transaction is a struggle...
My days lately are spent putting out fires.
Putting out fires and untangling knots seem to be the order of business with getting any deal to the closing table.
The GOOD news is that we are REALTORS, we KNOW there are gonna be sucky parts, but that is part of our job!
And if, in the end, we get the deal closed, we've helped yet another family into a new stage of their lives.
So three cheers for us!! And to heck with those who think we don't work hard for what we earn.
Here's a poem from Mother Teresa that really resonates with me, so I thought I'd share it here:
People are often unreasonable, illogical,
And self-centered;
Forgive them anyway.
If you are kind, people may accuse you
Of selfish, ulterior motives;
Be kind anyway.
If you are successful, you will win some
False friends and some true enemies;
Succeed anyway.
If you are honest and frank;
People may cheat you;
Be honest and frank anyway.
What you spend years building,
someone could destroy overnight;
Build anyway.
If you find serenity and happiness,
they may be jealous;
Be happy anyway.
The good you do today,
people will often forget tomorrow;
Do good anyway.
Give the world the best you have,
and it may never be enough;
Give the world the best you've got anyway.
You see, in the final analysis
it is between you and God
It was never between you and them anyway.
If we only had a nickle for every client who thinks we're over paid....
You know Richard I told someone yesterday that between contract and closing I know feel like someone is building a brick house around me with no windows and doors and I have to keep chiseling my way out. Your post sums up perfectly without all the detail of what agents and broker now have to go through. Oh and for me on Lake Sinclair... could you add # 7 and throw in Dealing with FEMA on flood insurance issues. UGH.
Richard: Indeed, all of us in this industry are working harder than I can ever remember in 25 years. Unfortunately, most of the work is BS and were trying to swim through the morass of conflicting new laws, rules, and regs... Hopefully we won't be so over regulated that were rendered useless and no one will be able to make a decision about anything because none of us will understand anything because it's all so friggin complicated we're all dumb founded and to paralyzed to say yes or no on our own without higher authority.
Rene'
Richard
Everything you have said is so true. I can add to this, inspections and reply to inspections. In my area where the majority of the homes are over 30 years old there are always issues and working through the process with the other agent is challenging.
As the song goes " she(he) works hard for the money".
Jayne
Absolutely we're all working harder, smarter and harder and smarter. It's good to let clients know what a complicated process getting to closing really can be......and so much more these days between shorts and foreclosures.
Excellent post..........and love the photo!
Richard: You're absolutely right. It's never as easy as it seems and there's always more to the story. I always hope by reading these posts and comments, that everyone within the industry comes to appreciate the others involved within a transaction ... their contribution and efforts ... and point of view. The deals go more smoothly when we do.
Gene Mundt, Professional Mortgage Banker Chicago Bancorp
The clients have no idea how much behind the scenes work we do, to keep it moving. They don"t understand the pressure from the liabilities that are on our shoulders. They certainly don't have a clue the amount of emotional abuse we suffer from people.
I'd have to say that in my experience here lately, that bottom picture is quite fitting for the topic at hand. Congrats on the feature.
And here I thought it was just me, Richard! Delighted to know I'm in the same boat as so many other competent professionals.
Richard - if you replaced real estate agent with mortgage originator in your post, you would describe my job and what I go through every day. So many have mentioned the increased number of mortgage issues that they have to deal and those are just the ones that require your assistance. I have to deal with every single issue that comes up.
Am I working twice as hard for less money? Absolutely! But I'm in this biz for better and for worse. I love what I do and I hope to be doing it for as long as I can.
So many time the buyers and sellers only find out when it doesn't happen. Many time when we have a smooth transaction they are not aware of the extra activities we preform.
Roy...
We usually write quite a few before one actually "takes!" You're correct, there's a lot of work of the front end too! Thank you very much.
Kim...
We see that a lot. It is very frustrating, isn't it? Thanks for the comment.
Christopher...
It is a tough image to shake ... but we are working our way out of it! THX
Richard, great post! You said it all, very succinctly and right on!!! ;-)
If people knew the amount of hours we spent just blogging, they'd realize internet marketing is extremely time consuming. And we don't get paid a penny until we actually sell something.
So very well said Richard! It was just today that I told my owner that for the first time I truly felt depressed with this business. I know I shouldn't as I have so much to be thankful for, but as Missy said, the joy of the closings has been ruined by the road to get there.
Ah, and all so true! And for those of us who are new to technology there is that entire huge learning curve regarding all the incredible tools and applications of the computer and internet worlds!
Very true.
Rich,
Well said and so true. We see many who have lost their hi-tech jobs get their real estate license and think I've got my laptop, cell phone and am ready to start collecting my fat commission! It's amazing they find it's work and hard work! They don't last long!!
Richard,
You are absolutely right. The human element in a relationship and in problem solving is precious and cannot be replaced with a computer. One of our clients had a house "exorcised", when the buyer felt that they were bad spirtis in the house. She hired the local priest (who had no idea how to do an exorcism), so instead he said a few prayers and the buyer was at peace and to this absolutely delighted with her purchase...
Besides all the issues that come up in a sale, there is that understanding and hand holding that to this day, no computer is capable of doing.
And don't even get started talking about all the work involved in listing short sales or REO properties. We earn every penny.
Seriously TLC should ditch Jon & Kate + 8. Our jobs are NEVER predictable unlike following around 2 sets of multiples!
Richard, another thing that makes the agent's job longer and tougher these days is working through "flaky" Internet leads with bad email addresses or bad phone numbers.
The last 24 hours have been brutal. Between appraisals that didn't meet contract price, offers that keep going back and forth in multiple counters and home inspections that are full of problems I'm completely wrung out. By the time a couple of these are done I would have made more working a straight shift at the local fast food joint. Something that our clients don't always see or understand.
Cindy - your last 24hrs sounds just like mine and the next 24 don't hold a lot of promise either. The weekend can't come to soon for me. Think I'll plan a trip to margaritaville this weekend. LOL
We do work way hard now then ever. There is rarely an easy deal and if its easy the buyer or seller is still normally happy anyway!
AMEN! If buyers and sellers only KNEW what we go through to help them accomplish their goals...Maybe we should be sharing these stories more often so they appreciate what we shield them from during the transaction...
Richard, well I certainly have never worked as hard for so little money. Prices in my area are so low and deals are si difficult it's like selling.....well...it's like nothing I have ever done before. I worked 4 hours today getting a short sale package ready to submit. 15 minmutes after I finally got it faxed to the lender(all 150 pages) the buyers agent called to say the buyer changed his mind!!!
Richard - Amen to this post! There are countless details that must be attended to during the normal course of a transaction not too mention the unpredictable periods of turbulence we find ourselves running into today. It's like being the pilot of a plane trying to make sure we get through those rough spots with a smooth landing as the end result.
Richard,
A very experienced agent in my office, one of our top producers, recently was venting to me that EVERY deal she had this month fell apart, one right at the closing table
Wow... Could not agree more.. Maybe I could if I had the time as pointed out by you and others. This is darn hard work especially in this market !! Thanks for the words..
Rishard..I am working 3 times as hard for about 1/4 the pay. But I am working!!!!
Hi Richard, Great post! There are always a million details in a transaction, it seems. Thanks for posting this.
Richard, Congrats on yet another star! Yes, Real estate is picking up and we all have to work harder for the dollars that we earn. I just wish that agents would keep that in mind instead of telling their customers to use this guy because they are $20 bucks cheaper...
Your building consultant for life in Nashville, TN
Not me Im just laying back and collecting the big bucks. RIGHT! Its harder and harder to get a deal closed. Its like having a new baby it needs so much attention!
A very informative post. Buyers and sellers need to be educated regarding the roles that good real estate agents handle.
I agree these days you have to work harder than ever to get the deal from contract to close. Not to mention the fact that so much of the time you are dealing with a corporate seller which makes everything take 10x as long.
Not only is it true that we're working harder, in a lot of cases it's for less as short sale lenders cut commissions and prices come down.
Amen! Not to mention the challenges of working with buyers now. Despite lengthy pre-education sessions about the pitfalls on making offers on short sales or REOs, we now often have to write several contracts before finally landing our buyers a home! ~ Julia
Good post. I am SO happy with the changes that were made to the Listing and Buyers agreement in May. It put things in perspective that we are professionals and we don't work for free.