Non-Local Firms Listing Properties

There has been a disturbing trend with out of area brokerages listing local properties. Although a brokerage anywhere in Washington State can list a property anywhere in the state, this business is very local. Many of these so-called discount brokerages are listing properties and not putting them on the proper local multiple listing service. A broker in Seattle is likely a member of the NWMLS that serves a large portion of Washington but does NOT serve as the local MLS for SW Washington and Vancouver. This area uses the RMLS. If a local house in Vancouver, WA is listed on NWMLS and NOT the RMLS it will not get the proper exposure in the local marketplace. In fact it is safe to say that 90% of the local Realtors® will not see it. 

This is a gross disservice to the seller who is likely to get far less attention than their home deserves. Furthermore this area is uniquely different than other areas in Washington state. I have seen homes horribly priced that sold for tens of thousands less than they should have fetched because a Realtor® based 150 miles away didn't price it right. That seller may have saved $5,000 on the commission but they left $30,000 on the proverbial table.

Real estate is a highly localized business and sellers are well advised to hire someone local. Sellers ought to make sure their home is at least listed on the local MLS. In the Clark County, Vancouver area we use the Regional Multiple Listing Service (RMLS) which has its SW Washington office in Downtown Vancouver.

Some of the worst offenders of this out of area listing debacles, are large national internet companies who are simply interested in churning commissions and not giving the seller the best opportunity to receive the highest and best offer on their property.

The old adage that you get what you pay for is alive and well in the 21st Century. Sellers often step over the proverbial quarter to pick up a nickel. With real estate that is not a 20 cent mistake, it can be a twenty thousand dollar mistake. Seller beware, a good Realtor® does not come cheaply, but that Realtor® will represent your best interest and help you have a much better outcome.

Local Realtors are Invaluable Assets

I am meeting with new clients this weekend about selling their lovely home. The odd thing is that they just bought this home a few months ago. I do not have all the details as of yet, but I do know that my new clients bought the house site unseen and moved here from 900 miles away. They utilized one of our national consumer real estate websites to buy the home and the listing agent's office was in Seattle 160 miles away from here.

I won't opine any further on this specific case, but in general my belief is that national websites such as Zillow, Redfin, Trulia, etc. are excellent tools for people searching for homes especially when looking at far away destinations. That is where their practical benefit ends however. There is no substitute for a local pro that understands the nuances of neighborhoods and the other important issues that face homeowners in a new region.

Once a buyer thinks they have narrowed it down to a few homes they want to see, or even offer on, a local pro should be contacted other than the listing agent. It is important not only to have a local agent that understands the local market, but also an agent unaffiliated with the seller. A listing agents greatest obligation is to the seller for which he has a signed contract with statutory language. The listing agent will pay the buyer's agent commission so the buyer is in much better shape using their own agent.

It is important to take the time to ensure you are buying the best house for you at the best price possible and with favorable terms. Buying a home and then having to sell it three months later is rarely a profitable exercise. Buyers need to be sure they have all the proper information before buying a house.

If you find a home on one of the national websites, there are usually buyer's agents listed. Sometimes there will be a preferred or premier, et al. agent. These agents have likely paid the company money for placement. There may also be a few random agents listed that have a profile on the system and list that area as their area of expertise. Be sure to visit the agent's profile before contacting them.

There is no better asset to a home buyer than a local professional looking out for the buyer's best interests, not the seller's.

Real estate is a local business.

(I wrote this for the Equity Northwest Blog and thought I would re-post it here.)

How often have you heard the expression, "real estate is about location, location, location"? If we are to take this idea at face value, then real estate is a local business. Local companies are much more in tune with the neighborhood trends, community developments, municipal and county regulatory and legislative agendas, and other important facts about the area. It stands to reason that working with a local real estate professional in a local company is a good idea.

This blog has been established to get good real estate information out to the public. We often post tips about home care, and local market trends. Today we will talk about the importance of local businesses and local professionals.

When choosing a real estate agent, buyers ought to think about the local aspect of real estate. Will this person understand the immediate market they are interested in? Is the company they represent a locally owned company or a national franchise? If the latter, then are they at least locally focused. Purchasing a home is most likely the single most expensive thing most people will ever buy. It seems obvious that care and attention to whom trust is placed to represent that transaction is paramount.
Local is critical because the difference between a "house" and a "home" is local. Building a home from a house is done with family, friends, neighborhoods, schools, churches, clubs and services. Local, local, local is as important as location, location, location because knowing the right location requires a local awareness.

If moving from Portland, OR buyers should consider carefully before using a dual licensed Portland agent for a Clark County home purchase. Although Portland is just across the river, it is a state away. Real estate in Oregon is conducted in a similar fashion but there are many different facets and nuanced subtleties that can be significant enough to bring about pause.

It's been more than a decade since Gene Thompson left one of America's largest national real estate firms to open his own brokerage here in Vancouver U.S.A. Equity Northwest Properties has always adhered to Gene's idea that real estate is a local business. One of the advantages to large national chains has always been resources. But national chains are typically run from a corporate office in some far away place. Local branches are often force fed a staple diet of the latest corporate headquarters buzz program. As we turned the century over to a new millennium many of those "resources" began to become widely accessible through the ever present internet technology. Now smaller, local companies have similar access. The resource edge offered by the big national brokerages has eroded significantly since 2000.

That has allowed companies like Equity Northwest Properties to thrive. Local Realtors® working local markets with a local corporate policy is pure bliss. This local minded business model has allowed Gene's company to evolve into one of the region's largest independent brokerages with offices in Vancouver, Camas and Kelso. Between the three offices are affiliations with the two largest multiple listing services in the Pacific Northwest, both the RMLS and NWMLS. That makes Equity a very local company with a regional reach. This is a powerful combination.

In conclusion buyers and sellers should strongly consider the local aspect of real estate when deciding upon whom they will hire to represent them. The best decisions are made with the best information and real estate information is local to the core.