ALIEN

: belonging or relating to another person, place or thing.  

: relating belonging or owing allegiance to another country or government. 

: differing in nature or character typically to the point of incompatibility.

Check.  Check.  Check. 

 

 

The proliferation of cloud based real estate companies has exploded in the last few years.  This has led to many inexperienced and often  well intentioned agents straying too far from the mothership and crashing head long into an unforgiving seller’s market.  These business models vary from hiring agents as paid employees, multi-level marketing (MLM) where agents are compensated for persuading their peers to join them or as the expression goes, fogging a mirror will do if you can garner the real estate transactions of family and friends.

 It is expected and usually welcome that the internet drives change to an industry to make it more efficient, consumer friendly and convenient, especially now as we find ourselves in the grips of a global pandemic. 

Ultimately our pursuit of efficiency produces an unintended consequence or for lack of a better term, a victim.   With the domination of Uber & Lyft  it’s NYC cabbies, with real estate it’s buyers. 

 

Remember travel agents?  They still exist but at much smaller numbers.  Local real estate agents face a similar challenge except the stakes are much higher; would you prefer a botched trip to Disney or being on the losing end of 3 consecutive bidding wars for homes that you really wanted?  A part-time inexperienced agent unfamiliar with the area and unaware with the current market conditions can’t be an effective advisor or resource when it’s time to submit your highest and best offer for your dream house.

 

This is happening ever day in this market. There are a lot of frustrated and angry buyers out and about perusing our Coming Soon listings and searching for something that at least checks a few boxes.   Recently, an agent from a cloud company in MA submitted a highest and best offer on behalf of the buyers at $20K+ below the other offers. Oblivious to the local area market conditions the agent thought their offer was in the ball park and was surprised to learn they did not get the bid.   Another agent from 2 hours away who boasts a team of 250 agents submitted a poorly written contract and was ignorant of the basic language of the contracts we use in Eastern CT.   Another losing bid on behalf of an unsuspecting buyer.    

My advice to serious buyers who want to be informed about the housing market and win bids:  Sign a buyer representation agreement with a local agent who has connections, experience and the negotiating skills that are imperative to get you the home you want.  We’re not in the business of throwing you and your contract at the wall until something sticks and we’ll do more for you than fog a mirror.