“Open Mouth, Insert Fine” or “Real Estate Roulette”
May 1st, 2008 by Rich Jacobson
With the advent of the Internet, information has become accessible at blinding speed. Want to know the migrating habits of the South African Gnu? What is the proper way to eat sushi? Or what was the original color of coca-cola? Powerful search engines enable us to locate virtually anything we want at the touch of a few keys. Websites, forums, and networks abound where we can obtain answers for every conceivable question. Information equips and empowers. It serves to form our opinions and guides our decisions.
This rapid accessibility and transfer of information is changing the way we conduct business as well. Companies and business professionals are moving away from one-sided, static websites to dynamic, interactive platforms, such as blogging, that allow consumers the ability to directly engage in virtual conversations.
Open and transparent dialog is a welcomed development in the real estate industry. The shrouds of mystery surrounding our profession have been quickly dissipating, offering consumers a well-deserved look into the inner-workings of the real estate world.
But there are inherent dangers to this new-found ‘free-for-all’ of information. And the potentially damaging ramifications exist for either side of the discussion.
Here’s an example of an actual ‘real’ question that was recently posed by a consumer on a popular real estate site:
“We just recently put our home on the market and we’re wondering, what is the selling market like now? What is the average time to sell a home in the $800K range?”
I’m not going to publish the various ‘responses’ to this inquiry (there were 5 answers at last look), but suffice it to say that all of the respondents chimed in with very detailed local markets statistics, jockeying and positioning themselves as the undisputed resident authorities. Almost all of them offered some measure of advice or counsel, and added the ‘perfunctory’ “for more information, my website/email is blah, blah, blah“….
What I found curiously missing was the question that should always be asked right out of the gate:
“Are you currently working with a licensed real estate professional?”
I’m thinking to myself, does this person have their home listed through a licensed agent, or are they attempting to market it on their own?
As real estate professionals, it’s ingrained into us from almost day one (Realtor Code of Ethics, Article 16) NOT to engage, counsel, or solicit someone who is, by contract, under representation by another agent. When in doubt, ASK!
And, as a consumer who is asking the question, how do you know if the individuals responding to your questions are actually ‘qualified’ to answer accurately? Are they licensed in the State where your home is located? Do they know and understand the unique nuances of your particular area? Who holds them accountable if they provide you with misleading or false information? How do you know for sure if they’re even a ‘real’ real estate professional?
Now don’t get me wrong. I am thrilled about all the advancements in Internet technology and their impact on the real estate industry. Many of the applications are having a very positive effect, both for us professionals, and for consumers.
But as real estate professionals, in our drive and desire to be helpful, we need to be ethically prudent, and exercise caution on what we say, and to whom we respond.
And, as consumers, though the Internet opens up a unlimited wealth of resources, remember that ultimately, real estate is local. The best way to obtain a qualified response?
Ask a local expert.
Real Estate Market Report/Conditions in Kitsap County WA for 10/04/2007
Current Market Conditions: The highest ratio of List Price vs. Sale Price is still Area 141 (South Kitsap West of Hwy. 16) with 101%. The lowest ratios were 97% for Areas 167 (Suquamish) and 161 (Hansville). Shortest Days on Market (DOM) continues to be Area 150 (E. Central Kitsap) with 62 DOM. Area 146 (Chico) was also still 2nd at 64. Longest DOM goes to Area 164 (Lofall) with 161, followed by Area 162 (Kingston) with 104. Inventory rose again slightly, and sales decreased. But the sales prices improved by nearly 7%.
But by far the most exciting thing that happened this past week was that my clients, TR and Arwen, closed on their very first home purchase!
These are challenging days for Sellers, not only here on the 
Josh is always curious about issues relating to real estate. This time, he wanted to know about the whole “Agent-to-Client” relationship thing, and specifically, what does a Buyer do when they realize that the Agent they’re working with is an idiot (those were his words, not mine!) Evidently, Mal’s parents have some friends who are in the market to buy their first home. From what Josh told me, it sounds like their agent probably sells snake oil in his spare time. He employs super high pressure tactics. He keeps trying to force them into buying one of his listings, even though it’s an overpriced train wreck. They’re at a point where they no longer feel comfortable with this guy, and wonder if he really is concerned with their best interests.
