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Oct
30

Truth in Advertising for Real Estate Agents

 Real Estate


Posted by Leslie Rosenthal of the Bob Lucido Team
 
Did you ever wonder about “truth in advertising” when it comes to real estate agents? I know I do!

Each week I see ads claiming to be the #1 real estate agent/team in the city/county/state – how many #1 agents or teams could there possibly be? Then there are claims of “100+ homes sold last month” which is pretty impressive, but how is that number calculated?

When you are looking to buy or sell a home, these advertising messages could be enticing – after all, isn't it a good decision to engage an agent or team with a successful track record? Of course it is, but only if the claims made can be trusted. As with any business decision, it is “buyer beware”! You should always do your homework to make sure you are hiring a company, buying a product or utilizing a service that stands behind their claims.

When Bob Lucido makes a claim that he is #1, you can be certain that is true and accurate. The ratings for agents and teams are made by brokerages on a quarterly and annual basis. If there is a slip in the ratings, the ads no longer make the claim. One statement that Bob can consistently make is “No known real estate team has sold more homes than bob Lucido and his team”. With over 3 decades in the industry and an average of 2000 homes sold per year in most of those years, it is a statement easily made – and verifiable.

When qualifying and quantifying the number of “sales” in a month, quarter or a year, it is important to make sure the agent or team you are hiring is advertising only “real” sales – those sales that have a monetary value to the broker. And what do I mean by this? Well, Bob, as with many of the large real estate teams, provides “courtesy listings” for builders. Those listings are an administrative task with no monetary value to Bob, his team or to ReMax Advantage Realty. Bob currently has hundreds of those courtesy listings in the multiple list system. What Bob doesn't do is count those listings in his monthly/quarterly/annual sales figures – why should he when there is no monetary value and certainly NO value to you, the consumer. The question begs “Why would an agent make the unsubstantiated claims”? The only answer I can come up with is bragging when there is no basis for the claim. Sort of like “Look at me, hire me, I am great” but then, what is in it for the consumer?

The bottom line – when you are looking for a real estate agent to sell your home or to assist you in buying a home, look for the one who will best serve you and not be so self-serving.

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Comments
I have seen these numbers reported by real estate agents and wondered what they meant. After all, you can say anything with statistics. However, these numbers that we are discussing should be obvious, and what they mean should not be open to interpretation. And I agree that the numbers of some realtors are so large as to be clearly misleading. The bottom line to me is that if an agent can mislead the public about something so clear yet so meaningless as the number of homes he or she sold in a month, then consider how much more that agent will mislead me when trying to represent me in the sale of my home.
Posted by : Richard - Monday, November 09, 2009
The customer should be the first and most important consideration of any real estate agent, not a canned sales pitch or theme. There probably aren't much more then a couple hundred homes for sale in the Howard County area so how can someone sell a hundred in a month? Oh well, look for honesty and integrity when shopping for a real estate agent and it will go much farther than someone's bragging rights.
Posted by : Margaret - Monday, November 09, 2009
It's all about the customer...making sure the customer gets excellent service all the way to settlement. Top notch service to client will come back 10 fold in the real estate business. Customers will remember the real estate agent that shares the passion for their most important asset their home. Always give great service to your clients and you'll always be number #1 with them.

All the best!
Mike
Posted by : Mike - Friday, November 06, 2009
I've often wondered (in this market) how anyone can sell 100 homes a month! Are they selling a building of condos and counting each condo in that sale? I.E. 30 condos in one building but counted as 30 individual sales? Is that how that works? If 2 agents work in the same office where one lists a home and the other has a buyer for that home, once sold, is it considered as 2 sales for that office or 1?
(Love your website!)

JJ
Posted by : Jan Jones - Friday, October 30, 2009
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