The Daily Challenges Faced by Real Estate Agents

Social Sphere Challenges

A recent post on Facebook highlighted an interesting challenge that most agents face in their careers. And while the message was seemingly endorsed by fellow agents who had befriended this person, the post was torn apart by those not involved in the real estate sector. The statement that caused certain people to become hot under the collar involved an agent who had told a seller that he refused to deal with him. By the sounds of things, the ‘know-it-all’ had pushed this particular agent to the absolute limit and instead of losing it completely, the real estate agent had chosen to simply walk away. The post attracted some 275 comments and, judging by the tone, several of the posters were ready to lynch the agent for pointing out that he didn’t want to deal with an unreasonable seller.

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“I have a policy of not taking on homes I know don’t stand a chance of selling because of their price.” -Michael Pashley, Harcourts

What are the Main Challenges Faced?

In the last edition we asked various industry leaders what they perceived to be the most challenging aspect of working in real estate. We received some pretty terrific answers but, interestingly, no one touched on the challenges faced by agents when dealing with clients who are disrespectful, difficult and/or just plain rude. It got us thinking…what sort of challenges does the average agent have to contend with and how do they overcome these challenges?

Real Agents- Real Stories

We chatted to three top agents to get their take on things and, while they tended to agree on the challenges they faced, how they dealt with these challenges differed from agent to agent. When asked if she had ever refused to market a home, Donna Sipman, a RE/MAX Masters sales associate, replied: “No, never. It is important for me to build strong relationships with my sellers. Gaining an understanding of what is important to them enables me to keep these interests front of mind.” When asked if she had ever refused to deal with a particular buyer, she answered that although she had never walked away from a buyer, she had been frustrated by buyers who were keen to purchase a home, but who, when the offer was put in, realised they couldn’t afford it and the bank declined the bond.

Top Agent Advice

However, both Michael Pashley from Harcourts and Marco Coetzer from Keller Williams Realty said they wouldn’t deal with every seller who approached them. “I have a policy of not taking on homes I know don’t stand a chance of selling because of their price,” says Pashley. “I firmly believe that having a property on the market at an extremely inflated price and for a long period of time damages its saleability, especially when the seller gets to the stage that they really need it sold. It doesn’t help the seller or the agent to market a home with an extremely inflated price tag. If a property is on the market for months on end, the buyer’s perception is that there is something wrong with the home and they will then very often make an offer well below true market value. So, yes, I have on many occasions had to walk away from a listing due to price. Alternatively, I advise the seller that they are better off not selling until the market appreciates enough to meet the value they want for their property.” Coetzer has a similar view, saying that he had refused to take on a mandate on many occasions. “A major problem area in the industry involves agents who accept an overpriced mandate. This, in my view, just feeds an unrealistic expectation. Very few agents are able to offer proper price counselling, and accepting a mandate on an overpriced property simply leads to a frustrated seller. This causes serious damage to the reputation of both the agent and that of the industry as a whole.” When asked if he had ever walked away from a buyer, Pashley stated: “Although it is extremely rare, it has happened. Generally, though, it only happens when I find that the buyer is not in a position to purchase and simply likes looking at houses. When these situations occur, it is not only a waste of an agent’s time, but is also unfair on sellers who are extremely house-proud and often spend much time preparing their homes for each viewing.” Coetzer said that he, too, would stop working with a buyer if that buyer was expecting to purchase a home at an unrealistic price. He raised a good point when he noted that he would much rather walk away from a buyer than let the buyer down later.

The Real (Agent) Challenge

While difficult customers are always going to be a problem, when asked what they regarded as their biggest challenge, agents had bigger fish to fry. “Overpricing is certainly the biggest challenge when dealing with sellers,” says Coetzer. “As a real estate agent, my job is to give the seller sufficient validated facts about current market conditions, recently sold properties similar to his in his area, accommodation price and condition, as well as about similar properties currently on the market. Then, based on the above, the challenge is to price the property competitively in order to reach the seller’s goal to have the property sold aligned to his time frame and reason for selling.”

Public Misconceptions on Real Estate Agents

Sipman believes that the most challenging part of her job is dealing with the public’s negative perception of estate agents in general, and negotiating commission. “The only way to deal with these challenges is to constantly prove to my clients, both sellers and buyers, that I keep my promises by acting professionally and maintaining a consistently high standard of service. It stands to reason that sellers are more likely to give bigger commissions if they are impressed with their real estate agent.” Pashley, on the other hand, says his main challenge is keeping all the concerned parties happy throughout the transaction process. “The buyer has one view on what should happen and the seller has another. To keep everyone happy and reasonable can be a massive challenge when clients have such definite views. I must say that the majority of my clients are very reasonable and have been an absolute pleasure to deal with. However, sometimes we do face difficult clients who insist on everything being done their way. That can be a challenge if they are being unfair.”

Real (Estate) Agent Advice

It seems that agents do have to prove themselves to a client base that doesn’t necessarily hold them or their profession in very high esteem. Overpricing is – and possibly always will be — a major issue, as is trying to keep everyone happy during the entire sales process. However, what is reassuring is that not only do these agents recognise the challenges they face, they go all out to deal with them in a professional manner. Although there are some in the public arena who will argue that selling a property is child’s play, the simple truth is that it isn’t and it takes a truly committed property professional to not only get the job done, but to do it to the best of their ability — every time. “As a real estate agent my job is to give the seller sufficient validated facts about current market conditions, recently sold properties similar to his in his area, accommodation price and condition, as well as about similar properties currently on the market. Then, based on the above, the challenge is to price the property competitively in order to reach the seller’s goal to have the property sold aligned to his time frame and reason for selling.”

Words: Lea Jacobs

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