The number of banks and credit unions offering the First-Time Home-Buyer Savings Account program is growing! Just this week the Oregon Bankers Association has identified three new organizations
3 Warning Signs Youre Hiring An Amateur Broker
You’re thinking about buying or selling your home, but aren’t sure who to hire. With all the ads and noise out there it's tough to figure out who's who and what's what. There are far more broke agents than experts. No broker wants to admit they are failing so they’ve put together some fancy phrases that sound like something special, but professionals know they are clueless. I’ve put together the top three phrases only amateur real estate brokers and agents use.
Million-Dollar Producer: While this sounds like a lot of money and sales, in real estate, in 2019, it isn’t. A million dollars in real estate is basically 2 houses in Bend. If an agent sold a million dollars in real estate in 2018, that’s 2 houses in an entire year. That’s so far below even an amateur level of sales. It’s really just part time income in today's economy. Let's break that down a little further. . .
A million dollars in sales is $30,000 gross income before fees, brokerage split and taxes. You could work as an Uber driver and make more money than an agent who sells a million dollars in real estate. They love to throw the phrase around, though because it sounds prestigious to the consumer. It’s great for the amateur broker’s ego, but if you understand the numbers, it’s obvious that your “million dollar producer” needs to get to work!
Years of Experience: Brokers without any business always tell you how long they’ve been in the business. They don’t talk about how actual production they have (because there isn’t any), or how many homes they’ve sold (because there aren’t any); they talk about how many years they’ve been a broker. It sounds good to say 10 years of experience. It’s not, though, and most brokers have one year of experience repeated 10 times, not 10 years of experience helping clients and closing deals.
Professionals talk about how many homes they’ve sold and what they can do to actually help you sell your home. Amateurs talk about how long they’ve been in business. With the “million dollar producer” selling two homes a year, 10 years of experience is 20 homes. So in 10 years the “experienced agent” has accomplished a few months’ worth of sales. Once again, it sounds great to the consumer and the uneducated, but we know what’s really happening.
All out of Listings: Brokers love to use this one. They love to act like they are so good that they sold all of their listings. They’re always out of listings because… wait for it…they never have any listings. Professional brokers never stop prospecting for new clients to serve and never run out of inventory. Even if they do temporarily, they definitely don’t broadcast it to their marketplace.
Amateur brokers think that running out of work sounds like a winning idea. They think the public will think they are moving properties really quick and that’s why they are all sold out. About as good of an idea as a Starbuck's barista running out of coffee in the morning.
Be on alert for fake news from brokers with sayings like the ones we’ve covered. Broke agents will stop at nothing to deflect blame and try and spin stories for their benefit. It’s getting easier and easier to spot the difference between a professional and an amateur. All you have to do is pay attention to what they are marketing. Is it a property & service to you the client or is it about them?