My Philosophy of Real Estate
I have not always been a real estate agent. In fact, I have seriously questioned whether or not this is the right place for me. However, over time I have reached a few conclusions. As a result, I have compiled a few of my thoughts and present them in a brief summary of my philosophy of real estate and real estate agents.
When I first got my real estate license, I questioned whether I had lost my mind. Like many other agents, real estate is a second career for me, and in some respects a "default" reaction to uncertain circumstances at the time. There was some logic and reason behind my decision and the question of my sanity was more related to the fact that I was going to work with my family. After all, the old adage, "never do business with friends and family" holds some merit.
I get along great with my family, however, and we have a great team. My fears subsided rather quickly. They have been replaced, though, with other concerns. Concerns about the real estate industry as a whole, the role of real estate agents, and the repugnant attitude so many agents exhibit. As a result, I have resolved a few issues in my mind and strive to live by a different credo.
Gaining Perspective
My first impressions of the real estate business were very positive. The RE/MAX agency that I joined with my father-in-law and my mother was fantastic. It was a new industry and I really enjoyed learning new things - construction, real estate law, agency, what makes a home desirable, marketing, and being an entrepreneur. The first few agents I met were also very welcoming and seemed to be genuine people just trying to earn a living. Over time, however, my perspective began to change. I soon realized why real estate agents are not held in high esteem in many circles. The pendulumn swung to the other side.
For some time, I seriously questioned whether or not I really wanted to associate myself with this profession. I guess I had never been around so many "prima donnas" in my life. After the first couple of transactions I often told my wife, "I would really love real estate if it weren't for the other agents!"
In fact, there is an entire Realtor culture that I am very uncomfortable with. I do not fit well in a context where so many practitioners hold themselves in such high regard and honestly believe they are more important than they really are. (I have observed the same attitude in Higher Education by the way) Nor do I enjoy the pomp and circumstance of wealthy agents, especially those who try really hard to make sure I know they are wealthy and super-important. They make me gag.
Fortunately, more time has elapsed and my perspective has mellowed to a more balanced view. I have encountered many agents in both a heated negotiation role as well as a friendly personal environment. Like every other industry in the world, there are some really good apples and there are some rotten ones. It is unfair to paint the entire industry with one broad, bleak, brush stroke.
Am I Even Necessary?
Since then, my struggle has been less about the people and more about the job itself. Buying and selling real estate is different in today's high-tech, info-savvy world. With the proliferation of internet-based MLS data and other public sources, people are scouring real estate search engines in droves. Just about anyone with enough time and motivation can get the basic information about homes that they need to buy and sell on their own.
Naturally, then, I have questioned my role and the necessity of a "middle-man" in the real estate industry. Many of the people I meet today have bought and sold several homes in their lifetime. They know the process and they are comfortable with selling on their own. A few see me and my role as listing agent as a "necessary evil", while others just see me as evil. I'm ok with that, I don't take it personal.
There are other selling homeowners, though, that actually derive a true benefit from working with a Realtor. While some people are very familiar with the real estate process, not all of them have time they can dedicate to selling their own home. Others just do not want the hassle. This group prefers to turn it over to a Realtor as a matter of convenience. I can help them.
Not everyone is comfortable with buying a new home or selling their own, though. In fact, the whole process is very foreign and daunting to many. They have told me so. I have worked with some who really did not know where to begin. I really enjoy working with this group. I get to spend time with them educating and helping them become familiar with the process, concepts, and the terminology. At the end of the day, I feel like I really helped. I feel needed.
Another group I love to work with is those individuals and families moving in to the Dallas area from outside the city. Again, this is where I feel like my job can be a blessing. Relocating to a new city is very stressful. I have done it a couple times myself. Much of the stress stems from a general unfamiliarity with the territory. Where are the good areas? Where are the areas to avoid? What is the best way to get to work? Will our kids go to a good school? How will I know if I am overpaying for a house? I can help answer many of these questions and make their transition to a new area a little more tolerable.
I am compelled to work with one additional group of people. These are the people who are buying homes on their own without an agent. I am concerned about this group because of their lack of representation. I do understand the motivation, though: many people want time to look on their own. They don't want some salesman hovering over them trying to push them into something they really don't want. These buyers can look at new construction model homes just as easily without an agent as they can with an agent. For resale homes, there's an agent's name and number on the yard sign that can help them if they need it, right?
My concern for these buyers is that they are entering a potential transaction that heavily favors the seller, not the buyer. In the case of new construction in the Dallas area, the sales agents in these model homes are NOT licensed real estate agents. They are the employed sales team on the payroll of the builder hired to sell their employers products. In the case of resale homes, the listing agent is also hired by the home owner to represent them and their best interest. So, where does that leave the buyers? In both cases, buyers are looking to buy a home where the seller's representative necessarily represents someone except them. Enter Buyer's Representation.
It is not necessary to detail the full history of Buyer's Representation, suffice it to say that buyer's have historically gotten the "short end of the stick" and buyer's representation was birth out of necessity. It only makes logical sense that buyers would want someone in their corner, helping them understand the complexity of the transaction as well as speak to the investment nature of any particular home. Everyone wants to know, "Is this a good deal?", "Am I being ripped off?" and "Will I be able so re-sell it if I had to?" From a philosophical standpoint, I do not like buyers being taken advantage of in a sales situation. I enjoy being an advocate for home buyers.
Finding My Groove
It is important to me that my work has meaning and from it that I derive some sense of satisfation. For all of us, meaning and value in our work instills a sense of passion in what we do. There is nobody more miserable than a worker who hates their job and despises going to work every day. Fortunately, I have resolved in my heart the legitimacy of my profession, I feel like my work has value, and I have identified the audience whom I can serve well. I enjoy what I do. As a recap, this is where I shine:
1. Buyers who need representation to prevent being taken advantage of.
2. Those who are not really familiar or confident with buying or selling and need assistance as well as education.
3. Buyers who are new in town and need help getting oriented with the city and the local real estate market.
4. Home owners who have the skill to sell their house on their own but not the motivation. They would rather outsource it to a professional. The convenience is worth the money.
The common denominator is that all of these groups have a need that I can help fill, and helping others is what my life is all about.
My Philosophy In a Nutshell
After examining a few of these issues over time and learning a few lessons I have put together a few statements of my real estate philosophy, so you will know where I am coming from. I suspect I will add/edit these over time, but here is where I am at right now:
1. I do NOT believe that every homeowner needs to work with a real estate agent. There are many who can sell their own home just fine.
2. I do believe there are many people who can genuinely benefit from enlisting the help of an agent.
3. I do NOT feel the need to be flashy or wear my success like overbearing cologne.
4. I do NOT believe in being pushy. It serves no one.
5. I do believe in putting my client's needs ahead of my own. It will come back around and benefit me. (Laws of Sowing and Reaping, Karma, What Goes Around Comes Around - call it whatever you like.)
6. I do my best work in a context where I feel like I am helping educate my client in some regard.
7. I do believe in earning a good living.
8. I do believe in balancing work and home life. Consequently, my cellphone does not stay on 24 hours a day.
Author Information
Jeff Wimpy
