Why Do Consumers Often Hate Real Estate Agents (And Appraisers)?
Posted by Jonathan J. Miller -Sunday, April 15, 2012, 3:58 PM
4 Comments
I had an interesting conversation stream recently that I thought I’d re-share. I dropped the participants names off (just in case).
My conversation began on Twitter with a question from a friend
Broker/Friend: Why do people hate real estate agents?
Me: Probably for same reason they hate appraisers.
Conversation that moved over to Facebook (my Twitter stream flows through it)
Colleague1: People “hate” what they fear. People mostly fear the unknown. They also hate situations in which they don’t get what they think they want. Real estate valuations and transactions are the vortex for unmet expectations as well as the unknown. From a philosophical perspective many believe hate and fear are synonymous. If that’s true, perhaps the vibe agents and appraisers receive is more fear that just comes across as hate. Information and explanations can diffuse and even disperse some of that. Setting expectations properly and education. Sometimes I think agents and appraisers simply get busy and skip some basic steps that could help. People in every profession get too busy and skip those steps. Of course, you can never satisfy the assholes, but I believe a few simple customer service-oriented tactics could make life easier for everyone involved. Thanks for letting me post on your wall and I hope you have a great weekend.
Me: Well said [redact]. I think also that the bar is so low in both industries that there is a wider range of competence – combine that with a large and significant asset tied to raw emotion and self worth and a whole lot of hate is the byproduct.
Colleague1: That’s a really good point. When people are dealing with what is most often the single largest asset they’ll ever possess, emotions naturally run high and they do let it become very personal.
Friend: In my experience, lying is the #1 problem I’ve had with real estate agents. Reason # 2 would be when they flirt with my husband and act as if I’m not there.
Setting realistic expectations with the consumer is key. I have been in RE business since 1978, my approach is to be honest, give clients the data, lay out options, counsel them pro and con, and then THEY make the decision. If you tell folks the truth upfront, they can make a good decision based on reality not illusion. Folks get upset when what they were led to expect does not occur. If you tell seller, house worth $200,000 (really worth $150,000), I can promise you will have upset seller at the end of the day. I also maintain an equal keel during transaction . As you note, buying a house is BIG deal, financially and emotionally.. If agent is on emotional roller coaster, it does not help client. agents are no different than folks in other professions. Some will be fantastic. Some will be dishonest. And others will be everything in between. Get referrals, interview, see who you are comfortable with. Every consumer is unique. Consumer needs to find agent that “clicks” with them.
Excellent points. It is the cognitive dissonance between what a home is worth to the seller and what the market says it’s worth that many sellers have a hard time coming to terms with. They have to assign a ‘face’ to their dissonance.
There are many reasons: 1) Unfamiliar transactions 2) Large asset 3) Future impact of a specific home purchase on life and lifestyle 4) Inherent mistrust of sales people 5) Heavy emotional involvement with decision and purchase increases stress
But you’re right on about the competency range of agents. Some are sonsumate professionals in it for the long term. They are all too well aware of the need to treat people such that they work with them on future real estate transactions and grow their businesses.
[...] post originally appeared at Miller Samuel’s Matrix [...]