Why Do We Settle?
It’s one of the most important relationships in your lifetime. If it works out, you’ve forever given yourself the best chance at happiness and success. If it goes poorly, you’ll likely face severe financial fallout and stress.
Are we talking about choosing your spouse or your real estate agent? Well, both.
Selective Partnerships: Spouses and Real Estate Agents
The impact of marriage on one’s life is undoubtedly understood. Homeownership also represents a significant milestone in our society. But while the gravity of these two massive “transactions” is equally appreciated, the searches for the right partner drastically differ. There are endless resources and attention invested in finding a suitable spouse, but we largely remain clueless how to find a good listing agent.
According to a 2014 UK study, a person will, on average, date 7–8 different folks before settling down. (If you’re curious, the number of romantic, ahem, entanglements before meeting “The One” is a bit higher). That’s a respectable number of dates and options vetted prior to making a long-term commitment. Such thorough due diligence makes total sense given the circumstances.
Of course, we sadly know the average number of marriages is not 1:1 with every person who takes the plunge. The oft-cited statistic that half of all marriages result in divorce means the average is actually greater than one. Still, the search for one partner (or up to two or three) for your lifetime feels worth the great efforts we undertake in surveying the dating pool.
When it comes to homeownership, it’s estimated that, on average, Americans will likely own 3 homes in their lifetime. Presumably, this implies an average lifetime tally of 2 homes sold (or a max of 3, depending on your interpretation)… not too far off the lifetime average of marriages; both minimal enough we can count our weddings or times elling real estate with one hand.
Here’s where it gets interesting.
According to a 2021 report by the National Association of Realtors, 77% of all homesellers contacted only a single real estate agent before selecting one to assist with sale. (90% contacted only 1–2 agents; only 10% contcted multiple agents). We basically ink a listing agreement without ever knowing if we found the best listing agent.
For the largest asset sale of our lives, one that we will probably only execute a maximum of 2–3 times, we are essentially just letting the very first real estate agents we meet handle it. That is an extreme level of trust we are putting in a person whom we have not even benchmarked against another suitor. That is not due diligence; that is borderline negligence. (Of course, we ought to also give a thorough vetting when we’re on the other side seeking a buyer’s agent, but the downside there is usually underwhelming search results for prospective purchases in the housing market).
Certainly, you are not cohabitating and raising a family with your listing agent — there are obviously some fundamental differences between a spouse and a real estate agent, both in terms of intimacy and duration of the relationship, among other aspects. But the financial implications of an unsuccessful real estate transaction can be catastrophic. Shouldn’t our level of care in how we find agents be closer to that which we unquestionably lend to our search for a soulmate?
Modern Problems Require Modern Solutions
Perhaps it is less adherence to a cultural norm that dictates an underwhelming search for a listing agent, and more a function of technology. As we have previously detailed, the advent of online dating and mobile apps have provided single folks access to a far larger pool of potential partners. And these tools not only expand the reach, but also allow for an optimized vetting process. You can research, compare, and meet people far more quickly than the old, analogue route. Just as we can wake up and skim the Wall Street Journal to evaluate investments, we have enough resources these days to wake up and evaluate potential partners. Best of all, there’s less reliance on your immediate social circle to provide discreet options.
This is not the case when it comes to finding listing agents. Today, there is no suite of digital tools built purely for homeowners to source listing agents — no platform has 100% standardized how to find a good real estate agent. Not yet. So you’re relying on an agent’s online presence, which is no doubt highly untrustworthy – savvy agents will curate their online reviews and testimonials from past clients. Or worse, if you rely on friends and family to recommend an agent, two things are true: you will only receive at most a couple referrals, and every potential rejection carries an uncomfortable social cost. Saying no becomes difficult; settling becomes common, even if it is outside your best interest.
While a listing agent will never breach the tier of importance occupied by a spouse, the search process may indeed shift towards similar due diligence. At TrueParity, that is our goal. Homeowners are begging for the technology to catch up, so we can expand our vetting process, and finally start scrutinizing potential listing agents through a much stronger lens. After all, we shouldn’t settle. If we mess this up, we may not get another chance.
So What Makes the Right Real Estate Agent?
The right listing agent will stand out to home sellers compared to other real estate agents… the way a soulmate does compared to other dating prospects. They will give careful consideration to you and your home sale, and demonstrate sensible insight into key sale aspects such as: listing price, hosting open houses, referring mortgage lenders, what constitutes the realistic best price for you, and other important financial decisions. Check the track record of each individual agent, investigate comparable new listings, then hire a listing agent that you believe will help you capture top dollar when you sell your house. The right person will make you feel confident in your decision, and never have you pondering a divorce!
Like this article? Curious to learn how someone else found the best real estate agent for them? Share this with your friends who own real esate and see what they say.
