The Value of a Knowledgable Real Estate Agent

A few years ago the real estate industry grew to such an extent that there was a record number of real estate agents with many of them being new to the industry. The new agents, not likely experienced in real estate sales, may have been very experienced in other fields, especially business or other types of sales. They probably knew something about delivering customer service and felt confident they could be successful in real estate. But, real estate, as a profession, can be one of the most difficult endeavors to do well. The schools and licensing organizations teach mostly real estate law and also how to pass the licensing examination. They do not teach you how to operate as an agent. The brokerage firm that the new agent joins will often provide the most useful and practical agent training. All agents must be knowledgeable in the following basic skills to begin a real estate career:

1. Technical knowledge of real estate contracts used in the area
2. Knowledge of the process used to list a property
3. Knowledge of the sales to closing process
3. Basic negotiating skills and techniques
4. Superior customer or client service techniques, professionalism
5. Lead generation and follow-up
6. Elementary understanding about the condition and style of homes in the area

With the above under his belt a real estate agent can begin a successful career. They need not be achieved completely overnight. Most agents will improve as time goes by and experiences multiply. The real estate agent must grow technically and professionally. He must get better at everything on the list and then add "value" to separate further from the remaining agents. Value, in the form of expertise in one or more specialties not only provides the ultimate in customer service to the client or customer, but also brings more business to the agent. Stating this negatively, if an agent attempts to step into one or more of these specialty arenas without doing some homework, it could be disastrous for both the customer and the agent's reputation. The bottom-line is that the top agents are not only competent in the basics but also have mastered one or more specialties.

What is a real estate specialty? The majority are related specifically to the area that the agent works or chooses to work. Some specialties are not related to an area but might be a demographic arena, like senior citizens or handicapped persons. There are often certifications for these and other specialties. But adult housing would be a specialty related to an area. Here are some specialties to consider:

1. Ocean front
2. River or lake front.
3. Golf communities
4. Condominiums
5. Any upscale community with ongoing new construction
6. Property management
7. Land

Every agent would love a high priced oceanfront listing. But not all agents have the knowledge to list an oceanfront property or to even find an oceanfront property for a buyer. It can be done mechanically, of course, but it will become apparent soon enough that the agent is lacking the necessary specialized knowledge to successfully market the property as a listing or to ask the right questions for a prospective buyer. Oceanfront communities likely have laws related to erosion, building height, type of foundation, docks, boats and possibly uncommon covenants and restrictions such as lighting, i.e., uninhibited lighting at certain times of year can harm sea turtle nesting areas. The value of this can be "priceless" to your customer.

The same may be said of river or lake front properties. The depth of the river or lake is critical to buyer with a deep draft boat. A buyer may have motorized craft such as a ski boat, so finding a lakefront property that does not allow skiing can be a waste of time and also erode the agent's reputation. Some properties may be or contain designated wetlands restricting almost any activity. If an agent lacks this type of specialized knowledge a listing may omit pertinent facts. With luck, all of these facts will be common knowledge before the closing, but time, money and reputation are on the line. Agents are often considered trusted advisors. The "trusted" part is critical.

Undeveloped land is another specialty that can be difficult and require specialized knowledge. Wetlands comes up again as a major question. Knowing what kind of structure that can be built on the property is a huge question. Knowing what can or will be built on adjacent properties is also critical, i.e., building a dream home and then watching a water treatment plant be built across the street will not endear the agent to the customer. Some errors of omission can even lead to legal action.

The other specialties listed are less "special" than waterfront and land, but nonetheless can require a great deal of specialized knowledge to develop an expertise. Condominiums can be very difficult to sell or purchase in any market, but are especially difficult since the recent banking upheaval. Knowing whether a condo "qualifies" for a loan can be a difficult question to answer. Often, condominiums can only be purchased with cash for many reasons. One of the main reasons is occupancy and sales figures for the community. If most units are rented or vacant, then most banks, even using FHA, will shy away from lending on any property in that community. An agent who has this knowledge about one or more communities or condominiums, in general, will save his customers a great deal of time and effort.

Learning about a particular upscale community is another appreciated specialty. Demographics may be a key to these areas. Many customers and clients wish to live in a community with similar income levels as their own. Often, if these areas are large enough with hundreds of homes, the demographics for individual subdivisions may be different than say demographics for the zip code. Getting to know the builder's site agents is good way to obtain information and to get referrals for people who do not wish to buy new construction. Knowing about association fees and CDD fees for the area can also pay dividends.

Many upscale communities are also golf communities and many customers are avid and serious golfers. It pays dividends to know about membership fees, guest fees, greens fees and entitlements to members.

Property management is a recent specialty that many sales agent have ventured into with the downward trend in sales prices. If a home cannot be sold for a reasonable price, from the customer's perspective, they may decide to move and rent their old home. Even if you do not participate in managing rental properties yourself, you should know something about the customary charges for managing a property, what management companies are likely to take very good care of your customer's home and the like. If you manage it yourself you will need to understand basic residential leases, plus obtain an understanding of the local and state rental laws. If you manage properties you become the "one stop shop" for your customer.

Overall, there are many ways to separate yourself from the agent "pack". Specialties, about which we have covered a handful, are one way to go. It takes some homework and possibly, finding a mentor to assist you at the beginning of the venture. But you will surely grow in value as you grow in knowledge.

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