The way real estate is bought and sold in the US is definitely changing. Following the landmark settlement in the case against the National Association of Realtors, real estate agents will certainly face heightened scrutiny for any real estate transaction moving forward.
For homeowners looking to sell their property, it's critical they properly evaluate a broker before hiring one to put their home on the market. But what's the most important distinction to make when interviewing an agent?
The rule of thumb is actually simple. Hire an active agent, not a passive agent. In this blog post we'll tell you how to spot the difference, and give you a bonus tip where to look.
What Is a Passive Agent?
Just being a licensed real estate broker doesn't automatically make someone a great agent. In fact, there are plenty of real estate agents out there who are mere passengers in the transaction process. We call these folks "passive agents."
A passive real estate agent is someone that just takes a listing and throws it on the MLS and expects to cash a check for 3% of the final sale price. They do little to promote a property; they have no concrete strategy to find the best deal in the market for their clients.
At best, a passive realtor is just lazy. They've been making a living doing the bare minimum finding buyers for their sellers, so why would they change now. A more critical lens would view these agents as incompetent. They do so little to galvanize a successful home sale because they lack the experience and local market knowledge to do any better. However, the reasons why a passive agent underwhelms ultimately don't matter -- getting top price for your home does.
What Is an Active Agent?
An active real estate agent is the polar opposite of a passive one, in the best ways possible. These are true real estate professionals who have mastered their craft and continually outperform their peers in the market.
First, an active agent has years of experience -- usually more than a decade in real estate. Becoming an expert in any field takes a whole lot of time and hard work. Paying these dues and learning from numerous transactions molds an active agent.
A good agent turns this experience into insight. They have excellent pricing models and creative solutions to get a seller over the finish line. They're up to date on all the latest comparable home sales in their primary territories. They have the tools to navigate different property types and deals; from short sales to converting a home into a rental property, they know all the facets of the business.
Naturally, active real estate agents have a deep network at their disposal; one which they're constantly leveraging for their clients. They know mortgage lenders, escrow officers, property managers, associate brokers, and of course -- potential buyers. Having established channels to the people that can make or break a sale is invaluable. A seller's agent will constantly utilize those to help put more money in the pockets of their clients.
BONUS: How to Find an Active Agent
The real estate industry is changing, and home sellers have more tools than ever. Perhaps the biggest gamechanger is now homeowners have a site where they can find all the "active agents" in their area. TrueParity is a platform that allows anyone to identify multiple top, local agents. From there, they can meet, interview, and hire the real estate professional that best fits their needs.
- If you're a home seller, you can find the best candidate for selling your home for the exact terms you want.
- If you're a home lessor, you can find a rockstar agent to quickly fill short term rentals or lease out your rental properties as part of a long-term investment strategy.
- If you're a home buyer, you can find yourself the best house hunter in your target market.
There's a reason why active agents sell the lion's share of real estate, despite accounting for only a small (top) percentage of brokers. If you're curious, then we encourage you to learn more first hand. Talk to an active agent and see for yourself.
Don't settle for anything less than an experienced, active real estate agent. Find yours for free at TrueParity and thank us later.
