There are Realtors and then there are Realtors...

I'll start by saying that this is not meant to put anyone down, accuse anyone of intentionally not doing his or her job, or knock on those who didn't have higher education opportunities. But, there are Realtors and then there are Realtors.

If you have been in the market for any type of property, you have probably realized that everybody has a real estate license. Everybody.  It seems like everytime I walk in the Ingle's grocery in my neighborhood, I see at least one Realtor.  Frankly, it's too easy to get and maintain a license.  And some people don't bother and are still out managing rental properties (illegal in TN) and are now self-proclaimed "Real Estate Investment Coaches." I've always been a proponent of more stringent licensing and renewal regulations - even going as far as to suggest a minimum two year degree (Associate's) to work in the business.  Realtors have a big impact on local economies through pricing of properties, advice to consumers, which properties are shown, which are ignored, business expansion locations, business relocations, lobbying efforts locally, regionally, and nationally - a lot of things that the general public doesn't realize. And, most have an even bigger impact on assisting the average consumer with what will surely be the largest purchase in his/her life. Note, the National Association of Realtors is the largest (and one of the most well-funded) trade organizations in the United States.

The good thing about all that I mentioned above is that there is a lot of good that Realtors can do.  A good Realtor can help a client look at all angles of a situation.  A good Realtor can then assist the client in understanding all viable options to provide the client with the best possible information for a sound decision - even if it's not exactly what you wanted to hear.  Whether it's in commercial or residential real estate, a good Realtor will help the client make the best investment.  Even in the residential setting, when the average consumer is only staying in a home for an average of 5 years, it's an investment, whether the consumer realizes it or not.

The problem with the influential-nature of being a Realtor is that there aren't a lot of actual experts in the marketplace.  So, some of the largest corporations that may be looking to expand or relocate into the area, the investors looking to invest in our properties, and homebuyers looking for sound advice may be talking to someone who has no clue, no education, or a biased opinion.  Example - I've heard from a number of businesses that (in the past) they have been totally swayed away from the possibility of relocating into the downtown area of Johnson City.  And, it's usually based on this: "Downtown hasn't been anything in years, so I'd look for a nice place toward north Johnson City."  That statement isn't founded in any data or research, and is simply a biased opinion from a Realtor.

On the clueless side, there are a lot of Realtors who use real estate as a side job.  They count on friends and family to buy or sell a house or two every year, and they may or may not be up to date on education, paperwork, price trends, value changes, etc.  Most of those folks look at real estate like freelance sales - and that is a problem.  Realtors are a tool to match the consumer with the right product, and not intended to sell you on anything.  And this stuff happens VERY easily.  As I said, Realtors are everywhere - they're church-goers, non-profit members, neighbors, parents to friends of children, co-workers, etc. So, it's a good possibility that you're going to run into one.  And, when you're in the market for a property, real estate is going to come up.  Then you're hooked by someone just based on your casual conversations who may or may not know what he or she is actually doing.

Some entire real estate companies are setup to encourage their Realtors to recruit more Realtors in a legalized pyramid scheme where sometimes they become more obsessed with stacking their pyramid than with advising you on real estate matters.  But, I'm not just laying the blame here with Realtors because if consumers would take the decision of spending a couple hundred thousand dollars more seriuosly, most of these "hobby" and "pyramid" Realtors would have nothing to do.

So, my entry for this month is just to encourage all you consumers - buyers, sellers, investors, business-owners, etc. to think about it.  I'm not saying a Realtor from T. C. Lewis & Co. is the only one to use because there are other experts in the mountain south.  But I am saying that you should evaluate your Realtor on more than just a casual conversation that you had with him or her at a playdate with your kids.  Remember, there are Realtors and then there are Realtors.