If you are smart enough to rely on experts to guide you through a process, then that means you are also smart enough to know when some so-called “experts” are faking it. Unfortunately, sometimes that wisdom doesn’t come until it’s too late. When you see smart people with money choose to do something, you assume it is a good idea. They have money because of their choices right? Not necessarily.
I bet all of the people who gave billions to Bernie Madoff wish they did more due diligence before throwing their money in with the lot. I have a friend whose Dad met with Madoff and during the meeting he asked to see the paperwork which would show how it all worked. Bernie apparently was insulted and said, “there are many people in line to be a part of my investments, I don’t need to waste my time.” My friend’s Dad walked out sure Bernie was full of shit. Sadly, it took years for that to become apparent to the public.
Sometimes, a good story convinces the public. Sometimes smart people make dumb decisions. And sometimes experts are just flat out faking it.
In home buying and selling, most people in the United States work with an expert, a real estate professional who is a trusted advisor. The golden rule is to put your clients’ needs first. Here’s another golden rule: maximum exposure yields maximum price. If you are selling your home, do not be fooled into believing it benefits you to sell your home within one brokerage. You will never know what sort of competitive bidding you might get, or where a better offer might come from. Remember: price does not determine the market, the market determines the price. An artificial market with constraints is bound to yield a limited price.
If you were selling a stock, would you start by testing it in an artificial market and be happy with the result, especially if you knew that artificial market benefited the one brokerage you were testing it in? Imagine if Schwab called you up and said, “look, I know you wanna sell your 200 shares of Apple. Let us test it internally here within Schwab and see what kind of number we can get you. Then you can just unload the shares that way, and it will be better!” You would probably laugh out loud and fire your broker.
The whole purpose of a market is its dynamism: its ability to live, move and change in real time. If you put constraints on that, what are you actually doing to the product, whether it’s a stock or a home? Something is amiss, askew, and fake.
We all know that if you have immense resources you can tell a larger than life story and distort reality. Don’t be held captive by soundbites and a big presence. Sometimes big companies mislead the public to benefit their bottom line and desire to grow. History is full of them.
Richard Branson said that the point of having a business is to make people’s lives better. If we consider that real estate agents are fiduciaries, and understand their agency to always put their clients first, then we must also understand that we must give guidance honestly and unfettered from our company’s personal motives.
Real estate, like the stock market, functions best when it’s open and transparent. Value is created through exposure, competition, and informed demand. After all, when a company goes public, it invites investors from all corners to determine the true worth of its shares. Similarly, when a home is listed broadly, through web-based platforms, brokerage networks, and public marketing it reaches the widest possible pool of qualified buyers. Growing the information sphere, not stifling it, is what is in the best interest of sellers, buyers, and the overall brokerage industry.
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