It’s like a romantic relationship. Things haven’t been going that well, but you have a lot invested. How is he or she going to react? Will there be drama? But there may come a time when you have to realize the two of you are incompatible. There may come a time when you have to break up with your real estate agent.
In most problematic relationships, the issue is — you probably guessed it — poor communication. That’s usually true when real estate agents and their clients run into trouble, too.
“The worst thing that can happen to a client is they feel neglected, and things just fester,” says Joseph Rand, managing partner of Better Homes and Gardens Real Estate Rand Realty in Westchester County, New York. “There should be a set time to talk every week, whether there is anything to update or not.”
The best way to avoid a breakup is to enter a relationship with someone you’re confident can help you, and set clear expectations from the start. Too many people choose an agent without doing the proper due diligence, and that can lead to a bad match.
“You need to do your research before you get mixed up with a real estate agent in the first place,” says Paul Reid, a Redfin agent in Temecula, California. “I think it’s something consumers overlook the majority of the time.”
Sellers usually do more research, getting the suggested three listing presentations before choosing an agent to list their home for sale. But buyers often pick an agent off the Internet or start with someone they meet at an open house without interviewing multiple agents.
Whether you’re a buyer or seller, you need to make sure upfront that you and the agent are a good fit.
Start with a frank talk about your expectations. How often do you want to communicate, and via what medium? If you’re seeking a listing agent, ask for detailed information about how the agent will market your home. If you’re a buyer, ask about how often you can expect to receive new listings and view homes for sale. “If you don’t [talk about expectations], you’re expecting the agent to read your mind, and that’s not fair,” Rand says.
One of the biggest mistakes sellers make is choosing the agent who suggests the highest listing price. All the agents are looking at the same sales data, so they should all suggest prices in the same range. If someone suggests a significantly higher price, ask questions about how she arrived at that number. Otherwise, you may find your house sits on the market for weeks or months with little to no interest, and then the agent comes back and tells you it’s time for a price reduction.
“A lot of sellers get very optimistic, and they get very greedy with their pricing,” Rand says.
Even if you think you know which agent you would like to choose, you still should listen to at least three presentations to test your preferred agent’s plan against other approaches. Your daughter’s friend’s mother who sells real estate on the side may be a lovely person, but she may not be the most effective agent for you.
“Sometimes folks choose an agent based on friendship, and that may not be the best match,” says Michael McGrew, CEO of McGrew Real Estate in Lawrence, Kansas, and treasurer of the National Association of Realtors.
Most buyers are frustrated when agents show them homes that don’t match their preferences, but good agents know that when buying a home, people often don’t realize what they want until they see it. About five years ago, for example, Rand moved out of New York and told his agent he wanted a single-family home in the suburbs. After showing a number of single-family homes that Rand and his wife didn’t like, his agent showed him a large condo. That’s the home they bought. “What you think you want is not what you actually want,” McGrew says.
It’s much easier to change agents as a buyer than as a seller. Some agents do ask buyers to sign contracts, but all sellers have to sign a listing agreement. The length of such contracts varies, from three months to a year. While some agents may be willing to let you out of the agreement, others may not. From the seller’s perspective, a shorter contract is better because you can easily extend it if the home hasn’t sold and you’re happy with the agent’s work.
But if you’re dissatisfied with the agent and the contract has months to run, start by having a frank talk with your agent about why the relationship isn’t working for you. “It’s about communication,” McGrew says. “Tell them what isn’t going right and ask them to fix it.”
If that doesn’t work, speak to the broker in charge of the agent’s office. That broker may suggest you work with another agent in the office. Other times, both parties may agree to void the contract. “We have no interest in representing a buyer or a seller who isn’t interested in working with us,” Reid says.
Here are seven reasons buyers or sellers might choose to break up with their real estate agent:
The agent isn’t available when you are. You have to fit looking for homes into the rest of your life, and the agent has to fit his work into his life. If you’re only available to see houses on weekends, and the agent takes weekends off, you’re probably not a good match.
You change your desired neighborhood. In smaller cities, such as Lawrence, agents may be prepared to work in a large geographic area. But in larger cities, such as San Diego, agents may specialize in one part of town. Any agent can show you a house in any part of town, but not all will be knowledgeable about taxes, schools and other specific local issues. If you start out looking for homes in one area then choose an area miles away, you may need to change to an agent who specializes in the new area.
The agent doesn’t keep his or her promises. When you sign on to sell your house, the agent should outline her marketing plan, which is likely to include the multiple listing service and online listings, perhaps an open house or two or an open house for agents. If those events don’t happen, you may need someone else.
The agent doesn’t return calls, emails or texts. If you’re a buyer, it’s reasonable to expect frequent updates with new listings. If you’re a seller, you want to hear feedback on showings. Agree beforehand whether each of you prefers email, phone calls, texts or a combination. “If an agent is not communicating with you in a regular way, it’s something to be concerned about,” Rand says.
The agent tries to push you to buy a particular house. The goal of a buyer’s agent is to help you find the right house for you and help you navigate the process, not push a specific property. If an agent is simply trying to sell you a home so she can collect a commission and move on, you might consider moving on from the relationship.
The agent shows you homes but doesn’t help with the process. The role of a good buyer’s agent is to help you navigate the entire homebuying process: get mortgage preapproval, negotiate the deal, line up home inspectors and understand what’s happening every step of the way.
The agent works part time. An agent who devotes the bulk of his time to another career is less likely to keep up with market trends or be available when you need him. “Those agents, while they may be close friends, they’re probably not the best agent to work with,” Reid says. You need someone who knows the industry and your local housing market.
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When to Fire Your Real Estate Agent originally appeared on usnews.com
