{"id":229699,"date":"2022-07-13T16:46:32","date_gmt":"2022-07-13T16:46:32","guid":{"rendered":"https:\/\/www.tamarindorentals.com\/?p=229699"},"modified":"2022-07-18T19:52:55","modified_gmt":"2022-07-18T19:52:55","slug":"what-do-real-estate-agents-really-do-anymore","status":"publish","type":"post","link":"https:\/\/www.tamarindorentals.com\/what-do-real-estate-agents-really-do-anymore\/","title":{"rendered":"What Do Real Estate Agents Really Do Anymore?"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; fullwidth=&#8221;on&#8221; _builder_version=&#8221;4.17.5&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_fullwidth_header title=&#8221;What Do Real Estate Agents Really Do Anymore?&#8221; subhead=&#8221;Are Platforms like VRBO and increasingly internet savvy users making realtors obsolete?&#8221; _builder_version=&#8221;4.17.5&#8243; _module_preset=&#8221;default&#8221; background_image=&#8221;https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/extinct-dodo-return-01.jpg?quality=75&#038;strip=all&#038;w=744&#8243; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; sticky_enabled=&#8221;0&#8243;][\/et_pb_fullwidth_header][\/et_pb_section][et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.17.5&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_row _builder_version=&#8221;4.17.6&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.17.6&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_text _builder_version=&#8221;4.17.6&#8243; _module_preset=&#8221;default&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; sticky_enabled=&#8221;0&#8243;]Today I want to take a tangent and discuss real estate \u2014 specifically real estate agents and brokerage firms. I have a good family friend that is looking to buy their first home in Costa Rica, and their experience hasn\u2019t been easy. That\u2019s not to say that buying real estate is ever easy, but dealing with a real estate agent should be easy. That\u2019s what they\u2019re there for!<\/p>\n<p>Beyond my friend\u2019s transaction, I started thinking about my experiences in real estate, as well as discussions I\u2019ve had with friends and family. Without a doubt,\u00a0<a href=\"https:\/\/www.tamarindorentals.com\/guanacaste-real-estate\/\">real estate <\/a>has drastically changed over the last 20 years \u2014 even over the last five years since the mortgage debacle.\u00a0 And all of my conversations seemed to point to one conclusion \u2014 what do real estate agents really do anymore? And is technology and increased user sophistication on the internet sending them the way of the dodo much like VRBO has done for Vacation Rental agencies in Costa Rica?<\/p>\n<p>Before you jump to conclusions \u2013 I\u2019m not advocating you skip an agent. They still bring some value to both buyers and sellers. What I am going to talk about is what they are supposed to do, what they do looks like in practice, and what value their services should cost.<\/p>\n<p><strong>Let\u2019s break it down.<\/strong><\/p>\n<h2>What Real Estate Agents are Supposed to Do<\/h2>\n<p>The first thing we should look at is what real estate agents are supposed to do.<\/p>\n<p><strong>According to the National Association of Realtors, a buyer agent should:<\/strong><\/p>\n<ul>\n<li>Provide you with information detailing current market conditions<\/li>\n<li>Help you with financial information, such as how much house you can afford<\/li>\n<li>Guide you through the home purchase process, including\u00a0<a href=\"https:\/\/thecollegeinvestor.com\/19796\/online-mortgage-lenders\/\">getting financing<\/a>\u00a0and what information you\u2019ll need to provide<\/li>\n<\/ul>\n<p><strong>According to the National Association of Realtors, a buyer agent also can:<\/strong><\/p>\n<ul>\n<li>Help you understand: real estate values, taxes, utility costs, municipal services and facilities, and local zoning ordinances<\/li>\n<li>Research homes for you using tools like MLS\u00a0(Multiple Listing Service)<\/li>\n<li>Show you homes best-suited to your needs<\/li>\n<li>Facilitate the negotiation of a home purchase<\/li>\n<\/ul>\n<p><strong>If you\u2019re selling a home, here\u2019s what a real estate agent is supposed to do for you:<\/strong><\/p>\n<ul>\n<li>Provide up-to-date information on the market to determine a reasonable asking price<\/li>\n<li>Show you the terms and conditions of competing properties<\/li>\n<li>Develop a marketing plan that could include repair suggestions, open houses, advertising, etc.<\/li>\n<li>Provide security for your home when it is being shown to strangers<\/li>\n<li>Negotiate\u00a0the best price for your home<\/li>\n<li>Monitor\u00a0the sale process, renegotiate\u00a0as needed, and resolve issues prior to closing<\/li>\n<\/ul>\n<p>Now that we have a good baseline, let\u2019s take a look at what they really do.<br \/>\n<script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-5375364437582490\"\n     crossorigin=\"anonymous\"><\/script><br \/>\n<ins class=\"adsbygoogle\"\n     style=\"display:block; text-align:center;\"\n     data-ad-layout=\"in-article\"\n     data-ad-format=\"fluid\"\n     data-ad-client=\"ca-pub-5375364437582490\"\n     data-ad-slot=\"3687131785\"><\/ins><br \/>\n<script>\n     (adsbygoogle = window.adsbygoogle || []).push({});\n<\/script><\/p>\n<h2>The Internet Has Eliminated Most Private Information<\/h2>\n<p>It used to be that real estate agents had\u00a0a secret weapon of information: the MLS. With this private\/paid tool, real estate agents could list properties, see transaction histories, and get market analysis. If you, as a buyer or seller, wanted that information, you had to pay for it \u2014 in terms of hiring a real estate agent to represent you to get the goods.<\/p>\n<p>However, today, there are 50+ real estate websites that publicly display that same information. You want market comparisons? Check out the recently sold section of\u00a0<a href=\"https:\/\/www.zillow.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Zillow.com<\/a>. Is that comp really a comp? There are pictures for you to check out as well!<\/p>\n<p>Beyond using these mainstream websites to do your own research, let\u2019s look at how the buying process looks in reality. If you want to\u00a0 buy a home\u00a0you\u2019ll typically contact an agent who will ask you for all the criteria you\u2019re looking for in a home. That agent will then take that information, and set up an automatic screening for you in the MLS. Then, each day, you\u2019ll get an email digest of all the homes that have come on the market that match your criteria.<\/p>\n<p>While this is a handy tool, the same information can be found publicly. In fact, I look at this more as a way out of having a real estate agent showing homes. In fact, I rarely hear about real estate agents actually taking clients to homes anymore \u2014 it only happens on\u00a0<em>House Hunters<\/em>. Instead, what typically happens is that the clients do their own research, and then simply tell their real estate agent which houses they\u2019d like to see.<\/p>\n<p>Want tax information? It\u2019s online. Want local parks and school ratings? It\u2019s online. Want to know about crime in your area? It\u2019s online. What to know how the neighbors are? Sign up for Neighborhood.com and get a glimpse yourself.<\/p>\n<p>But I\u2019m getting ahead of myself . . . .<\/p>\n<h2>Do You Even Need a Real Estate Agent to View a Home Anymore?<\/h2>\n<p>Beyond the MLS, many properties are now coming to market with their own websites that have hundreds of pictures of the house. Some even go as far as putting together virtual tours of properties so that you can get a real sense of things.<\/p>\n<p>However, viewing properties\u00a0online will never replace checking out a property in person, but there are open houses, or you could simply go to the house and peek in the windows!<\/p>\n<p>The only time you actually need to call a real estate agent is if you want to get inside the house without breaking in! And by that point, you\u2019ve probably already short-listed the property.<\/p>\n<h2>So You\u2019ve Found the Home \u2014 They Help You Negotiate, Right?<\/h2>\n<p>In my own past, I\u2019ve put in offers for\u00a0roughly a dozen different pieces of real estate, and never have I really felt that a real estate agent negotiated for me.<\/p>\n<p>The conversations typically go like this:<\/p>\n<p><strong>Me:<\/strong>\u00a0<em>I\u2019m thinking about putting in an offer.<\/em><\/p>\n<p><strong>Agent:<\/strong>\u00a0<em>How much do you want to offer?<\/em><\/p>\n<p><strong>Me:<\/strong>\u00a0<em>What do you think I should offer?<\/em><\/p>\n<p><strong>Agent:<\/strong>\u00a0<em>Well, the seller has it listed for this, and the comps look like it could go for this.<\/em><\/p>\n<p><strong>Me:<\/strong>\u00a0<em>Well, what do you think?<\/em><\/p>\n<p><strong>Agent:<\/strong>\u00a0<em>Well, offer what you\u2019re comfortable with.<\/em><\/p>\n<p><strong>Me:<\/strong>\u00a0<em>Thanks for being so helpful.<\/em><\/p>\n<p>Do you see my point here? I\u2019ve watched enough\u00a0<em>Million Dollar Listing<\/em>\u00a0shows on Bravo to understand it doesn\u2019t usually work that way. I\u2019ve never had an agent tell me they think they can get me \u201cthis\u00a0<a href=\"https:\/\/thecollegeinvestor.com\/3404\/5-ways-find-deal\/\">great deal<\/a>,\u201d or that \u201cwe should go in at this price.\u201d I\u2019ve found that real estate agents have simply become messengers \u2014 just doing what they\u2019re told by their clients.<\/p>\n<h2>But They Help With Financing, Right?<\/h2>\n<p>Nope. Every real estate agent has a mortgage broker that they work with. 90% of real estate agents have no clue what they\u2019re talking about when it comes to mortgages and financing options. They\u2019ll simply refer you to the mortgage broker that they know.<\/p>\n<p>I don\u2019t know what the agreements they have look like \u2013 but I have a hunch there is something. For example, on a deal I recently looked at, the seller\u2019s agent made me get prequalified with their mortgage broker to even consider presenting our offer to their client. It felt extremely dirty \u2013 and the sleazy mortgage broker just put us on his list and hounded us for months until we finally got out number removed.<\/p>\n<p>If you don\u2019t know how much house you can afford, you need to head over to websites like\u00a0<a href=\"https:\/\/www.bankrate.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Bankrate.com<\/a>\u00a0and use their free calculators. If you\u2019re still\u00a0not sure, contact your favorite bank and see what they say you can afford. Don\u2019t just take your real estate agent\u2019s word for it.<\/p>\n<p>Plus, there are\u00a0<a href=\"https:\/\/thecollegeinvestor.com\/19796\/online-mortgage-lenders\/\">online mortgage lenders<\/a>\u00a0now that will help you without ever setting foot into an office somewhere!<\/p>\n<h2>Real Estate Agents Do Monitor the Transaction<\/h2>\n<p>Some of it they do. Actually, there is a new trend in the real estate transaction game: real estate transaction coordinators. For the last two properties I\u2019ve worked on, once the offer is signed by both parties (the buyer and seller), the real estate agents disappear and you start dealing with a transaction coordinator.<\/p>\n<p>The great thing is that the transaction coordinator is typically the smartest person that you\u2019ll deal with in the transaction \u2014 they\u2019re organized and efficient and know exactly what\u2019s going on with all details of the transaction and what needs to be done.<\/p>\n<p>Chances are, if you call your real estate agent to check the status of the transaction, you won\u2019t get a call back until the agent checks with the transaction coordinator.<\/p>\n<p>Shoot, the transaction coordinator basically tells the real estate agent when they have to do something at this point \u2014 open the house up for an inspector or appraiser or get the buyer or seller to sign a paper. The real estate agent typically has no clue about the details.<\/p>\n<p>Talking to my parents, they were telling me it used to be the agent who did all the paperwork and ensured that everything was complete from start to finish \u2014 not a third party.<\/p>\n<h2>So Let\u2019s Look at Our List<\/h2>\n<p><strong>Buyer agents:<\/strong><\/p>\n<ul>\n<li><del>Provide you with information detailing current market conditions<\/del>\u00a0\u2014 Zillow.com and\u00a0<a href=\"https:\/\/www.realtor.com\/\" target=\"_blank\" rel=\"noopener noreferrer\" class=\"broken_link\">Realtor.com<\/a><\/li>\n<li><del>Help you with financial information, such as how much house you can afford<\/del>\u00a0\u2014 Bankrate.com<\/li>\n<li><del>Guide you through the home purchase process, including getting financing and what information you\u2019ll need to provide<\/del>\u00a0\u2014 transaction coordinator<\/li>\n<\/ul>\n<p><strong>Buyer agents can:<\/strong><\/p>\n<ul>\n<li><del>Help you understand: real estate values, taxes, utility costs, municipal services and facilities, and local zoning ordinances<\/del>\u00a0\u2014 Zillow.com<\/li>\n<li><del>Research homes for you using tools like MLS\u00a0(Multiple Listing Service)<\/del>\u00a0\u2014 Realtor.com<\/li>\n<li>Show you homes best-suited to your needs<\/li>\n<li>Facilitate the negotiation of a home purchase<\/li>\n<\/ul>\n<p><strong>Seller agents:<\/strong><\/p>\n<ul>\n<li><del>Provide up-to-date information on the market to determine a reasonable asking price<\/del>\u00a0\u2014 Zillow.com and Realtor.com<\/li>\n<li><del>Show you the terms and conditions of competing properties<\/del>\u00a0\u2014 Realtor.com<\/li>\n<li>Develop a marketing plan that could include repair suggestions, open houses, advertising, etc.<\/li>\n<li><del>Provide security for your home when it is being shown to strangers<\/del>\u00a0\u2014 This just doesn\u2019t happen often<\/li>\n<li><del>Negotiate the best price for your home<\/del>\u00a0\u2014 See my story above<\/li>\n<li><del>Monitor the sale process, renegotiate as needed, and resolve issues prior to closing<\/del>\u00a0\u2014 transaction coordinator<\/li>\n<\/ul>\n<h2>So What Do Real Estate Agents Really Do Anymore?<\/h2>\n<p>Well, if you look at our list, it appears that buyer agents simply show you houses and give you the appropriate documents for the purchase. As we discussed, they also only show you houses that you tell them to \u2014 there is no real work on the real estate agent\u2019s part to do this.<\/p>\n<p>As for getting the appropriate documents \u2014 some people still do sell their homes themselves. In fact, it\u2019s a trend that is growing in popularity. Since most documents for a home sale are standardized, you could buy or sell a house without using a real estate agent.<\/p>\n<p>As for selling a home, a real estate agent typically is a marketing guy. That\u2019s it. When selecting a seller agent, make sure that you\u2019re looking for the best marketing person you can find \u2014 who cares if they know what your house is worth, you\u2019ll have to do that part yourself.<\/p>\n<h2>This Is Always Controversial To Real Estate Agents<\/h2>\n<p>A few times a year, this post comes up in circles of real estate agents and it always strikes a chord. Some agents are happy about this post (in the minority definitely), because they understand the modern-day client, the way things are progressing with technology, and realize they need to step up their game to provide value to the transaction.<\/p>\n<p>Sadly, I get more upset agents that read this and think I\u2019m a terrible (or stupid) person for writing it, or I clearly dealt with \u201cbad\u201d agents. Maybe I did \u2013 in the big scheme of the United States, I\u2019ve dealt with and worked with maybe a dozen different agents in my life (buyer, seller, other party\u2019s agent, etc).<\/p>\n<p>What I think it really comes down to is the justification of value. Let\u2019s take the sale of my home \u2013 $1,000,000. Did the agent really earn $50,000 for the work they did (or really, $25,000 because of the split with the buyers agent)? Did they do more work for me than when I sold my $200,000 condo and only earned $10,000?<\/p>\n<p>I\u2019m not purporting that people sell their homes themselves OR not use a buyer\u2019s agent. I think as someone using an agent for both sides of the transaction, you need to assess the value you receive, and ensure that the compensation reflects that. I fully realize that the agent has fees involved, especially the selling agent. There are photos, drones (today), time, not to mention the overhead of licenses, insurance, splitting fees with their broker, etc. All that means is that agents need to bring value more than ever.<\/p>\n<p>If they want to earn their commission, they have to do more than add their clients to the MLS, send them automatic updates, and go to a showing. Or if they\u2019re selling a property, they need to be marketing and not just data entry into the MLS system.<\/p>\n<p><strong>What do you think? Are real estate agents worth a 6% commission? I\u2019ve never passed 5%, but even that\u2019s pushing it to me . . . . End rant.<\/strong>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.17.5&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_row column_structure=&#8221;1_5,3_5,1_5&#8243; _builder_version=&#8221;4.17.5&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;1_5&#8243; _builder_version=&#8221;4.17.5&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_column][et_pb_column type=&#8221;3_5&#8243; _builder_version=&#8221;4.17.5&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_column][et_pb_column type=&#8221;1_5&#8243; _builder_version=&#8221;4.17.5&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n<span class=\"et_bloom_bottom_trigger\"><\/span>","protected":false},"excerpt":{"rendered":"<p>Today I want to take a tangent and discuss real estate \u2014 specifically real estate agents and brokerage firms. I have a good family friend that is looking to buy their first home in Costa Rica, and their experience hasn\u2019t been easy. That\u2019s not to say that buying real estate is ever easy, but dealing [&hellip;]<\/p>\n","protected":false},"author":70,"featured_media":229705,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","_mi_skip_tracking":false},"categories":[813,1292,1,812],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Do Real Estate Agents Really Do Anymore? - The Guanacaste Guide to Business and Real Estate<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.tamarindorentals.com\/what-do-real-estate-agents-really-do-anymore\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Do Real Estate Agents Really Do Anymore? - The Guanacaste Guide to Business and Real Estate\" \/>\n<meta property=\"og:description\" content=\"Today I want to take a tangent and discuss real estate \u2014 specifically real estate agents and brokerage firms. I have a good family friend that is looking to buy their first home in Costa Rica, and their experience hasn\u2019t been easy. 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