In this video we cover the high cost associated with hiring a bad agent. Click the link below to view:
SUMMARY: A bad agent will cost you literally thousands of dollars. Things bad agents do:
A bad agent will price the home incorrectly. Most of the time, too high. It could be incompetence or it could be they want to placate the seller and over-promise simply to obtain the listing. This will cause a home to sit, meaning (in most cases) several mortgage payments the seller would have to make that they otherwise wouldn't have to if the home was priced correctly.
NO RETURNED PHONE CALLS
A bad agent won't return phone calls. Maybe it's because their day job is making lattes or maybe it's laziness/incompetence. Regardless of the cause it is extremely costly to a seller if a potential buyer cannot schedule a showing and view the property. No showings = no offers. No offers = no sale. I return calls, texts and e-mails in a timely fashion.
NOT KNOWING THE CONTRACT
The California Residential Purchase Agreement (or as we know it: C.A.R. Form RPA-CA) and its related forms are the language of real estate during a transaction. A bad agent will quickly make costly mistakes on behalf of their seller. In a recent transaction, the seller's agent incorrectly structured the seller's counter offer which ultimately costed them thousands of dollars. When these forms are ratified, they become a legally binding contract, so your agent should know what they are doing!
IMPROPERLY COMPLETED DISCLOSURES
Bad agents don't advise their clients of the "three d's": Disclose! Disclose! Disclose! Disclosing any material fact that would cause a potential buyer to make a decision about a home is a must. The truth shall set you free and issues you've disclosed are your 'get out of jail free' card for those issues.
A bad agent will not market a property properly which will result in missed opportunities for a potential buyer to see it! This would be a case where the agent really does just 'stick it in the MLS' and not utilize all of the tools, networking and just plain footwork to get the property sold.
CONCLUSION: Hiring a 'bad agent' will cost a seller much more than any savings gleaned from the commission discount offered. Make sure you do your diligence and hire that right agent for you.