5 Myths About Real Estate Teams vs Solo Agent, What Sellers Should Know
The Team Hype vs Solo Hustle
In today’s real estate market, teams are everywhere, shiny logos, coordinated suits, and promises of “round-the-clock service.” But are they truly better than working with a skilled solo agent?
Spoiler: Not always.
Let’s break down five major myths about real estate teams and why you might be better served by a solo agent who knows how to deliver results, without the handoffs and bureaucracy.
Real Estate Teams vs Solo Agent
Myth #1: A Team Gives You More Attention
Teams love to say, “Someone’s always available.” But who is that someone?
Often, it’s not the person you met or trusted with your listing, it’s whoever’s free at the moment. A common complaint is that although you can reach someone when it’s urgent, the person on the other end of the phone only takes a message, a live “voice mail.” This leads to disjointed communication, lost context, and a lack of true accountability.
The Solo Agent Advantage: One point of contact. One consistent voice. Complete accountability from start to finish.
Myth #2: Teams Are More Experienced Than Solo Agents
Don’t let the roster fool you. Many teams are built around a lead agent with experience. However, the majority of your interaction may be with newer inexperienced agents learning the ropes.
Solo Agent Reality: A true solo pro has already built their experience. You’re not part of someone’s training ground. You’re getting top-tier guidance from someone who has mastered the game.
Myth #3: Teams Sell Homes Faster and for More Money
There’s no verifiable data proving that teams outperform solo agents in sales price or speed.
What sells a home quickly and for top dollar? Smart pricing, strategic marketing, and strong negotiation.
Solo Agent Reality: A solo agent often outperforms teams by being more agile, personalized, and fiercely protective of their reputation.
Myth #4: Teams Have Better Marketing
Teams talk about “in-house” photographers and content managers, but those roles are often outsourced, which is common for all real estate agents.
Solo Agent Reality: An effective solo agent knows which pros to hire and when. They curate your marketing strategy with personal attention, not a preset checklist.
Myth #5: You’ll Save Money with a Team
Contrary to what you might hear, teams can come with higher costs, because you’re funding a whole operation. And more people involved can mean more dropped balls.
Solo Agent Reality: Solo agents know every dollar matters. And because they take on fewer clients at once, they’re focused on delivering full-value service, not juggling a pipeline.
The truth about teams vs solo agent? There are great teams out there. And there are great solo agents. But don’t assume the size of the operation equates to the quality of service.
What matters most is this:
Is your agent personally invested in your outcome? Do they return your calls, fight for your bottom line, and treat your property like their name is on the sign?
If the answer is yes, that’s the agent you want. Whether they wear all the hats or lead a crew of five.
Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.
Is your real estate agent equipped with the tools to conduct your transaction?
Is your agent equipped with the tools to conduct real estate?
Why Some Real Estate Agents Can’t Fully Help Their Clients
Is your agent equipped? The truth is, real estate tools like Sentrilock, MLS access, and other tech platforms and resources are not always included automatically. Agents have to opt in—and pay for them. Some choose to cut costs by skipping these subscriptions, but that choice often limits their effectiveness.
If your real estate agent doesn’t have all the tools, that means lost opportunities, delays, and a frustrating experience for clients who think their agent is fully equipped to conduct their transaction.
Does Your Real Estate Agent Have Full Access to Sentrilock?
One of the lesser-known realities in real estate is that not all agents have access to the tools they need to serve their clients effectively. A prime example? Many agents don’t subscribe to Sentrilock—the system used to access electronic lockboxes that are used to list and show properties.
This might sound like a minor detail, but it’s a big deal.
Without Sentrilock, an agent literally can’t get into many homes to show them to buyers. And for listings, electronic lockboxes have been shown to add a level of safety, preventing unscheduled or even unlicensed access to your home.
Is Your Real Estate Agent Truly Equipped to Handle Your Transaction?
When selecting a real estate agent, it’s essential to consider if they are fully equipped to handle your needs—whether you’re buying or selling. It’s not just about knowing the market; an agent should be armed with the right tools, up-to-date knowledge, and a deep understanding of local ordinances and laws.
A well-equipped agent has access to the latest technology, from MLS systems to lockbox tools like Sentrilock, to ensure they can access and show properties seamlessly. But tools are just part of the equation.
They also need to stay current on the latest contracts, legal requirements, and industry norms, which can change frequently. Real estate laws differ from state to state, and even city to city, so having an agent familiar with local regulations—like zoning laws, permits, and ordinances—can prevent costly mistakes.
An agent who is truly prepared knows how to navigate complex contingencies, manage timelines, and advise clients on the best course of action based on the latest market trends and legal requirements. They won’t just rely on outdated practices—they’ll ensure you’re getting the most accurate, relevant advice every step of the way.
Make sure your agent is fully equipped to handle all the moving parts of your transaction. It could make all the difference in securing the best deal and protecting your investment.
So when choosing an agent, it’s worth asking: Do they have all the tools needed to get the job done?
Title: Is Your Real Estate Agent Equipped to Handle Your Transaction?
Section 1: Essential Tools Every Real Estate Agent Should Have
Conclusion: Make Sure Your Agent Is Fully Equipped!
Do They Have All the Tools?
Are they up-to-date on current contracts and laws?
Are they familiar with local norms and ordinances?
Do they have the right technology to support your needs?
(FAQ)Frequently Asked Questions About Real Estate Agents
Q1: What are the fundamental technological tools and access that a competent real estate agent should possess? A competent real estate agent should have reliable access to the Multiple Listing Service (MLS) for up-to-date listing information and market analysis, including the ability to pull comparables. They also need lockbox access, such as SentriLock, to efficiently show properties. Furthermore, proficiency with digital signing tools is essential for convenient and paperless contract execution.
Q2: Why is it crucial for a real estate agent to have current knowledge of contracts, local ordinances, and market trends? Familiarity with the latest real estate contracts, including new clauses and addendums, is vital for ensuring transactions are legally sound. Agents must also understand local zoning laws, building permit requirements, and other relevant ordinances to guide clients effectively. Staying informed about current interest rates and local market fluctuations enables agents to provide informed advice on pricing and negotiation strategies.
Q3: How does an agent’s local familiarity benefit a buyer or seller in a real estate transaction? An agent with strong local familiarity can provide valuable neighborhood insights, including information about local amenities, schools, and neighborhood value trends. They also understand local buyer and seller expectations and are familiar with local closing practices, which can contribute to a smoother and more successful transaction.
Q4: What key negotiation skills should a real estate agent possess when representing a buyer? When representing a buyer, an agent should be skilled at identifying and understanding the buyer’s needs and then finding suitable properties. Crucially, they must be adept at negotiating price and various contingencies (like inspection or financing) to protect the buyer’s interests and secure the right home under favorable terms.
Q5: What key negotiation skills should a real estate agent possess when representing a seller? For sellers, an agent needs strong skills in developing a sound pricing strategy and effectively positioning the property in the market. They must also be capable of skillfully handling offers and counteroffers to achieve the seller’s goals and secure the best possible price and terms.
Q6: How does a real estate agent protect a client’s investment throughout the transaction process? A knowledgeable agent protects their client’s investment by ensuring compliance with all relevant local and state laws. They also play a crucial role in risk mitigation by incorporating appropriate contingencies into contracts and ensuring necessary disclosures are made. Their understanding of legal guidance helps prevent potential issues down the line.
Q7: What role does an efficient agent play in managing timelines during a real estate transaction? An efficient real estate agent is responsible for diligently managing deadlines associated with various stages of the transaction, from initial offers to inspections, appraisals, and ultimately the closing. Their proactive approach helps ensure a smooth and timely closing process, minimizing potential delays and complications.
Q8: Beyond basic licensing, what are the overarching indicators that a real estate agent is truly well-equipped to handle a transaction effectively? A truly well-equipped agent demonstrates a combination of factors beyond basic licensing. This includes having access to and utilizing essential technological tools, possessing up-to-date knowledge of contracts and laws, demonstrating strong familiarity with the local market and norms, exhibiting proficient negotiation skills tailored to their client’s needs, and proactively working to protect their client’s investment through legal awareness and efficient timeline management.
Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.
If you consider the roots of brokerage in residential real
estate, you can imagine how much the business of selling homes has
changed. Unlike today, the first real
estate brokers were independent. Their “listings” were exclusive and
proprietary. Buyer agents didn’t exist
until well over one hundred years later.
And at the beginning, there was no broker cooperation on listings and commissions.
Real estate consistently voted as best investment
Of course, everything changes over time. Brokerage
cooperation began with loose networks of brokers who agreed to help sell each
other’s listings. Early multiple listing
services evolved out of those local networks.
And as the real estate industry adopted emerging technologies, the MLS concept
evolved into the listing service we know today.
The MLS framework promoted the evolution of real estate
brokerage as well. Centralizing and
standardizing listed homes made home searching easier for brokers and their
respective buyers.
Brokerage cooperation allowed agents and brokers to sell others’
listings to buyers. Up until the early
1990’s, all agents and brokers represented the home seller. However, it’s likely technology and a robust
MLS fostered buyer agency and dual agency.
It seems as if it wasn’t until the advent of buyer agency
when people began questioning agency and compensation. Prior to buyer agency, the commission was
negotiated between the listing broker and the home seller. Selling agents (those who brought the buyer)
were a subagent of the seller, so it made sense that the commission would be
shared with subagents.
The commission structure of today’s listing agreements seems
to be an antiquated carryover, where commissions are “shared” with sub agents
and exclusive buyer agents.
As an aside, it’s common, if not required, for a buyer agent
to disclose to their clients their compensation amount. If the coop commission
is less, they will likely collect it from their client.
Currently, real estate agent and broker compensation is
undergoing a meticulous and exacting scrutiny inside and outside of the
industry. During the last two decades,
there have been legal challenges to the industry’s status quo on residential
agent and broker compensation. However,
recent legal proceedings have gained traction such that a growing number of
real estate brokers are embracing a possible future with “decoupled” commission.
When change is afoot in the housing industry, there is a lot at stake for real estate brokerages. Although the outcome to the current challenges of real estate compensation is uncertain, the result may be that residential real estate brokerage comes full circle, where buyer and seller compensation are respectively exclusive.
Disclaimer.
This article is not intended to provide nor should it be relied upon
for legal and financial advice. Readers should not rely solely on the
information contained herein, as it does not purport to be comprehensive
or render specific advice. Readers should consult with an attorney
regarding local real estate laws and customs as they vary by state and
jurisdiction. Using this article without permission is a violation of
copyright laws.
Working with a real estate agent (infographic from keepingcurrentmatters.com)
Many home buyers and sellers don’t give much thought in choosing their real estate agent. They may decide to work with an agent after meeting once or a phone call. But having the right agent by your side can mean the difference in having an event-free home buying or selling experience, or one that is full of pitfalls and non-communication. Besides professional expertise and experience, is there a real estate agent personality trait that gives you an advantage?
Lee Davenport conducted a groundbreaking study comparing real estate agent personality differences (Home Sales Success and Personality Types: Is There a Connection?; Journal of Real Estate Practice and Education; 2018; Vol 21, No 1; p29-57.) The study investigated the question whether there is a connection between successful real estate agents and their personality type. Success was measured through lead generation (e.g., meeting new clients). Although you might think there is a personality that is better suited for real estate, the study concluded that there wasn’t one specific personality type that correlated to real estate success. However, he suggested that there should be further research to understand why there is no difference in the success among real estate personality types.
Back in 2014, Graham Wood wrote an article for NAR that also questioned if there was a perfect agent personality (Are You Sure Your Agents Have the Right Personality for the Job? nar.realtor; April 11, 2014). Although the article was not a study published in a peer reviewed journal like Lee Davenport’s, it does provide food for thought and an obvious conclusion.
Wood, like Davenport, questioned which personality dimension on the DISC test was better suited for real estate. After testing himself, Wood believed his personality traits were not suited for a people-skills intensive field (such as real estate sales). However, after interviewing several brokers, he learned that there is place in real estate for pretty much any personality type. The DISC (discprofile.com) is a behavioral assessment tool that helps people be more self-aware, and increase productivity.
What should you look for when choosing your agent? First, make sure they are licensed in the area you intend to buy and/or sell. I can tell you that there are agents who try to do business over state lines where they are not licensed. It happens more than you think.
Second,
what’s their experience and expertise?
In today’s market, most agents don’t confine themselves to specific
neighborhoods. The idea of “neighborhood
specialists” is antiquated. Information
is abundant to agents and consumers, and can easily be applied to any
neighborhood. You can learn more about
an agent by how they handle adversity. Instead of asking about how many sales
they have or neighborhood experience, ask about specific transactions where
they overcame obstacles.
Other
considerations include getting a referral from a friend or relative. But referrals
should be vetted. Just because your
friend had a good experience with their agent, doesn’t guarantee success for
you. Sometimes agents and clients
connect and work well together, and sometimes they don’t. Just in case, make
sure you can walk away from your agent by ensuring your buyer or listing
agreement provides for termination without a penalty.
Also, it doesn’t hurt asking the agent for a couple of references from recent clients. You can get insight into the agent’s business by calling the references and asking about their experience with the agent.
Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.
Ten years ago, I reported on the growing demand of transparency in real estate. As you can imagine, mistrust of real estate agents was at an all-time high after the housing market crash. At that time, home buyers and sellers felt betrayed by an industry that was perceived as keeping their cards close to their chest. However, times were changing and consumers demanded real estate transparency, especially from their agents. Home buyers and sellers not only want their agents to act in good faith, but also want more information and communication during the transaction.
Since then, the National Association of Realtors (nar.realtor) has been trying to mend their reputation. The 2015 DANGER Report was intended to identify issues affecting the industry as well as provide a roadmap to the future. One of the major issues identified was agent competency and ethics. However, it was obvious that ethical Realtor behavior didn’t guarantee competency. And vice-versa. The upshot of the Report was that many of the identified concerns were already known. Ironically, the identified issues and answers only prompted more questions. It was not known if and how the industry would provide real estate transparency.
Fast forward to 2019, when the real estate industry
is at a crossroads. Earlier this year a
class-action law suit was filed that challenges how agent commissions are
paid. Also, earlier this year, the
Consumer Federation of America (consumerfed.org) published the first in a
series of reports focused on “the lack of real estate agent transparency on
representation, compensation, and service.”
The Consumer Federation of America (CFA) is described as an association
of non-profit consumer organizations that was established in 1968 to advance
the consumer interest through research, advocacy, and education.
The class-action suit filed in March, if successful, has the potential to force a major change to the industry. Besides having the potential to change how agents are paid, it may force increased real estate transparency in agent compensation. Nevertheless, similar past challenges to the NAR and the real estate industry resulted in minimal (if any) change to how business is conducted.
Serendipitously (or not), Stephen Brobeck’s most recent CFA series report, “Hidden Real Estate Commissions: Consumer Costs and Improved Transparency”was published this month (consumerfed.org). The report confirms consumers’ “lack of understanding” of commissions. It also points out how “concealment of commissions” does harm to consumers. The report indicated that 70 percent of the agents surveyed charge six-percent commission. Commissions are mostly uniform, more so for buyer agent commissions. The report also indicates that there was a general rationale that buyer agents would not show property if the buyer agent compensation was below the average for the area. Of the agents surveyed, 73 percent indicated they won’t negotiate their commission. It also calls attention to administrative fees of several hundred dollars, which is typically charged in addition to commission.
The report concludes that the real estate industry must change its attitude about agent compensation, or risk eroding consumer trust. Home buyers and sellers are savvy, and are increasingly sensitive to the role that commissions play in housing costs. Home seller costs could be reduced if consumers compare commission rates and ask if they are negotiable. Home buyers can also be helped if they are aware how their agent is paid, as well as knowing the offered buyer agent compensation on homes listed in the MLS.
Original article is published at https://dankrell.com/blog/2019/11/23/real-estate-transparency/
Disclaimer.
This article is not intended to provide nor should it be relied upon
for legal and financial advice. Readers should not rely solely on the
information contained herein, as it does not purport to be comprehensive
or render specific advice. Readers should consult with an attorney
regarding local real estate laws and customs as they vary by state and
jurisdiction. Using this article without permission is a violation of
copyright laws.
