Unless you’ve been on a TV/media blackout, you’ve seen the recent Real Estate commercials offering “Ratings” and “Report Cards” on Real Estate Agent’s client satisfaction, productivity and knowledge. Some of them even offer to refer you to an agent who “Does the most business in your neighborhood”; you know which ones I am talking about; they rate local real estate agents and show you how agents “compare” to other local agents based on negotiation skills, local knowledge; etc.
Have you ever stopped and considered how those companies find the Agents to rate? It seems simple, and needed, right? A grading system which pre-screens Real Estate Agents; perfect! You would think so; but things are not always as they seem.
As the consumer (looking for a great agent), you diligently enter all the information about your home, your needs and (of course) your contact information. The ‘names withheld to protect the guilty’ website shows local agents and each respective agent’s ‘Report Card’. Presto – Bango! A list of the “best” agents shows up.
Here’s what you don’t think about: where did the agents on that list come from? What is the actual rating scale? How many agents did they compare? Is this even real? Or are those agents paying for that report card?
The fact is, every agent who subscribes to those services, are paying to be there. They are paying up to 40% of the commission (commission from selling your house) to the website for being listed on the site as “qualified”. Yes, I said that right. Disguising as providing a customer service, these companies are just lead generation sources in which agents pay to play. The main criteria for being listed as “Qualified” is to pay them.
In fact, such websites have inserted themselves into the process of consumers locating brokers simply to be able to charge a middleman markup fee. You, the consumer, don’t see it; but it is there…paid by the endorsed agent. I once heard a wise and thought-provoking statement: “If you are not paying for the service; it’s because you are the product.” Perfect description in this situation.
The bottom line is this: Don’t believe everything you see on TV, sometimes there is way more under the surface; and not necessarily in your best interest.
When you need a real estate broker, do your due diligence. Ask your friends or colleagues for referrals, read actual client reviews, and meet an agent in person. The next time you see an ad for “the most qualified Agent” think to yourself, “I wonder how they are getting paid?”.
Here is a link to my reviews, written by actual clients who wanted to share their experience with me as their agent: https://www.zillow.com/profile/Christen-Cripe/#reviews. Call me anytime if you have questions or would like to chat.