The Facts and Stats on the Value of a Real Estate Professional

I just read an article that made me laugh. I have been in real estate for 36 years the CEO of Coldwell Banker since 2004 and I have seen my share of foolish articles and headlines. But this one tops the list: Why Getting Rid Of Realtors Will Save The Housing Market

I just read an article that made me laugh.  I have been in real estate for 36 years the CEO of Coldwell Banker since 2004 and I have seen my share of foolish articles and headlines.  But this one tops the list: Why Getting Rid Of Realtors Will Save The Housing Market

I hope no one believes anything in the article.

Sellers realize a real estate agent is extremely important today.  In fact, according to real estate industry analyst Real Trends, the average commission paid to a professional sales associate has actually gone up because selling a home is more difficult today than it was five years ago.  There will be approximately 30% fewer homes sold this year than in the peak year of 2006.

And you want to use an agent.   Since 2004, the amount of homes that were For Sale By Owner (FSBO) has dropped from 14% to 9% of all homes sold.  And the median price for all FSBOs last year was $140,000 compared to $168,000 for those who started as a FSBO and then hired an agent to get their home sold.  That’s a 17.5% increase.  Clearly doing it yourself leaves money on the table largely because pricing the home correctly is critical.

Buyers and sellers today are anxious, confused and nervous about engaging in the home buying and selling process.  We know that both anecdotally and factually through a survey we did.  Where once there was a lot of excitement in the process, today consumers are rightly cautious.  Let’s face it, economic conditions impact all of us.

But through all of this, buyers are buying and sellers are selling.  And they are doing so largely because of lifestyle reasons.  Getting married, having kids, getting a job transfer or promotion, downsizing to a smaller home.  These are just some of the reasons people continue to buy or sell today.

And clearly real estate agents play a major role in those transactions.  They obviously help set the sales price, market the home, and guide you through every step of the process.  And in most cases, they are paid a commission at the conclusion of the sale.  And that commission is based upon the sales price, not “added on” as the article indicates.

I could go on and on about this article, but it’s just so off-base that I think 389 words on it is enough!   So what do you think?

  • Chris McIntire

    Yes, It is sad all the miss information that is out there, no wonder everyone is so confused. The truth being that with the home being one of the largest decisions and purchase a person will ever make. Having a professional with you is only the first correct decision to make in the process of either buying or selling a home.
    The Number one thing for any true professional is to keep themselves educated about all the changes. This will be a true benifit to everyone involed in the process and lead only to a sucessful Close.

  • Lori Santora

    As an experienced Coldwell Banker agent, I find it upsetting when accusations of Realtor incompetence & greed based behavior are bandied about so casually. It is always instructive though, to hear the complaints and horror stories that unfortunately are out there. I don't want to be a party to that so I'm painfully taking it all in. In this market I know that I am working harder and smarter every day to do my job well, and earn a living at the same time. I have had to look closely at every part of my daily work and adapt to a changing real estate environment. Helping guide buyers and sellers through the financing part of a transaction is no small feat these days and tries most everyone's patience. I know there's no magical way to make everyone happy, but I intend to keep trying.

  • Keith Cuddeback

    The author just had writers block that day and wanted to stir things up a bit. Our profession is not going away.

  • Anthony D'Alicandro

    Wow….hilarious rant that followed the actual article. Fortunately, it's the small minority of people that would take the time to rant like that. Meanwhile, the larger majority who are reasonable, respectful and look for advice are who we get to work with and for everyday. The unreasonable/disrespectful ones…I'm happy to not work with. As I see it….they'll get what they're looking for. Funny thing, that 'karma'. I'm competent (at least I tell myself so

  • Roy

    Professional sellers- banks & builders have almost always hired Realtors. They understand the value of some that can negotiate for them. So one that understands the laws & shields them from liability. No everybody gets it.

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  • Baker

    In California, this is the same as saying reduce the fees of Lawyers.
    There are too many and they are too expensive for what they do.
    Yet that is where we go when we are confused and in trouble.
    Except in California, the agent co-ordinates and we seldom use the Lawyer.
    (and if the agent does a good job, no lawyer is needed!)

  • Sharda Motwani

    I could not agree more.