Realtors come in all sizes, shapes, talent levels and personality types. There are those who specialize in residential or commercial and some who do both. Some do a lot of marketing to attract new clients while others rely on their sphere of influence and past clients. Some even specialize in certain housing types or certain neighborhoods.
I’m always perplexed when a home comes on the market represented by a Realtor from out of the area. This often happens on bank-owned properties, but it’s certainly not exclusive to those homes. Usually we find that the Realtor is a personal friend, a discount Realtor found online or someone who markets to distressed sellers either online or by direct contact. In a fast moving market, this practice can work—especially if all the seller wants to accomplish is to get the property sold.
The downside is that it’s impossible for any Realtor to understand every neighborhood, and every neighborhood has pros and cons. A home’s value can vary greatly based on where in the neighborhood it’s situated and how the home compares with the others in the area—specifically those that have recently sold. It would be impossible for an out-of-area agent to have that knowledge, which cannot be ascertained by simply viewing the comps. If a seller wants to maximize their return on equity, a good local agent will be able to accomplish that much better than the out-of-area Realtor. A 10-year study in Virginia revealed that homes sold for 1.71 percent more when represented by knowledgeable local agents versus out-of-area agents. From what I’ve observed, that percentage would be much higher in California. The other caveat is that out-of-area Realtors are almost impossible to get on the phone and seldom return messages or email. The bottom line is that those listings take longer to sell, and they ultimately sell for less money.
This becomes more poignant with buyers. We often receive offers from out-of-town agents and the good ones ask a lot of questions. Others ask almost nothing, leaving it up to the clients to figure everything out.
I live and have my office in Morgan Hill. I watch the local market very closely and know where the good neighborhoods are, where the best schools are and even where to get the best sushi. I also know the areas of concern and although I have a good grasp of the rest of the county, I am no expert in distant places.
Recently, while hosting an open house, a couple touring the home told me how they had purchased their current home. They used an agent who didn’t have or didn’t convey any local information and they aren’t very happy with where they bought. Their home is downwind of a mushroom farm and at certain times, leaving the windows open isn’t an option. A good local agent would have made sure they knew where the home was situated, where the farm is located and the normal wind patterns.
Some Realtors fear revealing everything about a neighborhood might risk a sale. For Realtors who place your interests first, it never risks a sale and it almost always guarantees the client will be much happier with the home they choose.
At the very core of the Realtor-client business relationship is a personal relationship. This personal relationship should extend all local knowledge the Realtor can share. If we are working with local buyers they will already know about the town. But for those moving to our area from even as close as San Jose, almost everything will be new for them. This becomes exponentially more important if they are transferring from another state. It is important for them to know where the good schools are, the best restaurants, recreation centers, theaters, churches, shopping, commute routes, bus/ train stations, libraries, bike trails, lakes, golf courses and the list goes on and on. Only a competent local Realtor will have that knowledge.
The relationship between a Realtor and client is personal, even intimate in the sense that we are assisting them in what may be their largest financial decision. Realtors should guard the trust placed in us, and do everything possible to protect our client’s interest during the purchase or sale of a property.
City/Median price/Percent Change/Sales Volume/Percent Change
Morgan Hill/$695,000/+19.8 percent/41/-42.3 percent
Gilroy/$590,000/+11.3 percent/61/+10.9 percent
San Martin/$839,000/-37.9 percent/7/+133.3 percent
Hollister/$456,000/+23.8 percent/44/unknown
Source: Core Logic through November 2014
