Are You A Real Estate Agent Who Clients Want to Swipe Right On? 7 Questions Every Agent Should Answer
As featured in Realtor Magazine's YPN Lounge.
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| Photo by Flure Bunny on Unsplash. |
If you have ever been on a dating app, then you know no matter how many questions you ask initially, there are some things that will be revealed with time, including the good, bad, and the questionable.
Selecting a real estate agent, whether on an app or not, is often no different in that time reveals more. But some things should be revealed on day one to ensure prospects swipe right (dating app lingo for wanting to get to know the prospect better). For instance, you may not have realized that a particular agent you selected to help you find a home is like a pitbull when negotiating, which may work in your favor with the temperaments of certain prospective home sellers but not with others who look for a gentle approach.
In honor of Valentine’s Day this month, let’s talk real estate shop using a dating analogy.
Swiping Right on Red Flags: Why are some sellers willing to put up with problematic behavior?
You may not be surprised to learn that those new to a dating app can sometimes assume that everything presented is accurate. Whereas, dating app gurus may understand that it is important to “trust but verify”.
Similarly, some home sellers do not have time to be micro-managers, hence why they have hired someone else to oversee the process and may take what is presented at face value. Unfortunately, some home sellers (particularly first-timers), may not understand the legal and financial ramifications of certain behaviors during a real estate transaction.
Further throwing a monkey wrench into the selection process, a recent Clever Real Estate study shows that nearly half of surveyed homeowners would not fire real estate agents who steal or lie about their licenses or who display other unprofessional behavior, such as:
- Being rude to potential buyers or other agents
- Being consistently late to meetings or appointments
- Wanting to “cover up” discovered problems with the home
- Hitting on them
- Making inappropriate jokes or comments
- Lying about having a real estate license
- Stealing from them
On the other hand, sellers would indeed fire an agent because their home is not selling as fast as promised, they revealed too much information to potential buyers, pressured them to accept low offers, or rushed the selling process.
Anecdotally, we know that most home sellers select agents based on referrals, past relationships, and reviews. This is no different than trusting the profiles on a particular dating app because a friend had a good experience. Thus, if the home seller has good reason to believe that this agent will get the job (of selling the home) done well due to a proven track record from a reliable source, then that home seller may be willing to overlook annoyances along the way.
Before Swiping Right: What should people look for when hiring a real estate agent to avoid problems down the line?
We can all understand the trade-offs when working with fallible human beings! And, similar to dating apps, some sellers may approach finding an agent using the 80/20 rule (or Pareto’s Principle).
However, annoyances compared to unethical, worse yet illegal, behavior is a very different situation. Honesty, integrity, and a command of local, state, and national laws (or a lack thereof) will be peppered into an agent’s initial listing presentation.
Consequently, home sellers should listen well, not just for the agent’s ability to sell the home but the agent’s ability to not fudge or blur the ethical and legal lines. This is no different than initially seeing a person’s dating profile but still asking questions to dig deeper into the responses.
The Fine Print: What legal and ethical standards are real estate agents held to?
Every reputable dating app has fine print.
Comparably, real estate agents are held to the code of conduct created by their realty firm, the state’s real estate commission, and other local, state, and federal laws (such as fair housing laws, antitrust laws, etc.).
Leading the pack, Realtors have gone a step further and created an extensive code of ethics (with possible penalties for infractions) that anyone can review online (hint, hint: review it!).
Matched: What benefits do good real estate agents offer?
On some of the most popular dating apps, it usually is not one trait that makes a match but a combination of characteristics.
Selling the home is a given when seeking a listing agent to market your home but that is only one skill set needed. Yes, you want to know an agent’s ability in that regard, but has that agent (or that agent’s office) been entangled in some ethical or legal scandal, particularly in the last 5 years? Prospective home sellers can and should check with their state’s real estate commission to identify if the incident is a dealbreaker for earning their business.
Furthermore, although most agents are not licensed attorneys, we still have a fiduciary duty to help our clients avoid legal trouble. As an example from a first listing appointment, we had an agent (who is a coaching client) share that the home sellers only wanted to sell their home to a family that looked like them. The agent quickly skipped to the section in her listing presentation on how “familial status” is a protected fair housing class along with other fair housing laws.
The family was shocked. They did not know that what seemed like an innocuous request of hoping a family as large as theirs would get the home was actually unfair housing.
After being educated during the information-packed listing appointment on what fair housing was (along with other laws), they were eager to comply and happily referred our agent to their friends because they felt she would proactively keep them out of legal “hot water”.
Likewise, if you are a real estate professional, I challenge you to ensure that all of the below points are incorporated into your listing presentation.
DTR*: What tips do you have for managing a relationship with a real estate agent?
Some of the best dating apps identify from jump one’s intentions in the profile (long-term relationship, casual, FWB*, etc.). In the same manner, as a real estate sales and business coach as well as a fair housing educator, I teach agents to set expectations on day one. Ultimately, surprises can and should be minimized during one of the largest financial transactions most people will make. That starts with agents proactively establishing clear expectations in key areas such as the following (and home sellers should ask about these areas if not initiated by the agent):
Communication Cadence
1. Will there be daily, weekly, or some other consistent time for updates on marketing efforts, showing feedback, market trends, and transparent dialogue about challenges and necessary strategy shifts – even if there’s "no news”?
2. What is considered a “prompt response” to prospective buyers and showing requests? Some agents have a set time of day to return calls, texts and emails, while others respond instantly – either may be acceptable (or another variation) with advance notice.
Pricing Strategy
3. How will you educate the seller on the local market and encourage realistic pricing and flexibility?
4. How will you handle the negotiation process? Again, the more forthcoming you can be, the less thrown off by surprises home sellers will likely be.
Marketing Approach
5. What are the specific ways you will get eyes on the listing (e.g. social media, MLS, open houses, lawn signs, etc.)? Share any metrics that support your strategy.
6. How should the home be prepared (e.g. is home staging needed?, etc.) to maximize views on each marketing platform/source?
Legal/Procedural Guidance
7. Whether the home seller is an experienced real estate attorney or a first-time home buyer working her first job, how will you make a standard practice of educating the home seller on local, state, and federal laws?
For example, a typical first-time home seller may not know that RESPA requires that no referral fees are to be paid to those who are unlicensed. In other words, the unlicensed neighbor who referred the home seller will not get paid for this deal no matter how sugary sweet her request and demeanor are.
Or, as another illustration, a home seller may not know that fair housing laws require that you not exclude a homebuyer’s offer because of a foreign language barrier (nationality is a protected class).
In short, it is important to create a shared understanding of what is and is not legal and ethical from the start. Less of “Do you like this decor?”(it is important but should not consume conversations) and more of “Do you know these legal deal breakers?”
Picking a real estate agent, like swiping right on a potential date, gets easier the more that can be explained and discussed on day one.
Happy matchmaking, whether with a date or a house!
*DTR: Define the relationship
*FWB: Friends with benefits
Dr. Lee Davenport is a real estate coach/educator and author (including Be a Fair Housing D.E.C.O.D.E.R. and How to Profit with Your Personality). Dr. Lee trains real estate agents around the globe on how to work smarter with their unique personalities and how to “advocate, not alienate,” so everyone has access and opportunity in real estate.
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