When new investors asked me, Do Real Estate Agents Talk To Each Other? I always told them the same thing. Just as in any profession some real estate agents talk to each other only enough to do their job. Others speak to each other because it gives them a professional edge, or to expand their knowledge. Meanwhile, some real estate agents talk to each other just because they enjoy a good gossip.
Do Real Estate Agents Talk To Each Other? Yes, real estate agents talk to each other, and they do so to :
- Facilitate the sales in which they are involved
- Build a professional network which, in turn, helps them better serve their clients
- Learn about the properties, the neighborhoods, and issues that might affect their clients
- Enjoy a good gossip
Each of these reasons why real estate agents speak with each other has its pros and cons, although some are more positive and some more detrimental than others. Not only that, some of the things real estate agents talk about with each other may step over the line into illegal and unethically territory, and so it is essential to know what impact of these interactions can have on you and your home sale.
Do Real Estate Agents Talk To Each Other?
Just as with most organizations, there are varying degrees of interaction between real estate agents. The difference is that real estate agents are generally extrovert, outgoing types which makes them more likely to enjoy a good chat, which can be both a good thing and a bad thing, depending on the individual agents.
Let’s take a look at why.
What Are The Positive Aspects Of Real Estate Agents Talking To Each Other?
Let’s take a look at at the positives of agents talking to each other within the context of the four areas above.
To facilitate a sale, real estate agents need to talk to each other. However, to do this well, good real estate agents speak with each other. Let me explain.
This is a pair of real estate agents talking to each other:
Agent One “, My buyers, are thinking of making an offer.”
Agent Two “OK, I’ll wait to hear from you.”
Meanwhile, this is two agents speaking with each other:
Agent One “, My buyers, are thinking of making an offer, a touch under the asking price. Do you think your client would consider that?”
Agent Two “I can’t give you a definite yes or no, but if it helps you advise your clients, I can say we may have already had some under asking prices offers, and the home is still on the market.”
Yes, this is a pretty stilted, unlikely scenario, but you get the idea. Real estate agents have to talk to each other to facilitate a sale, but by speaking with each other, they can make things move more smoothly for the clients on both sides.
Talking to each other to build a professional network is essential not just for individual agents, but for the industry as a whole.
A healthy and buoyant real estate market depends on agents talking to each other. At the most, basic level listing agents need to know about the other properties on the market with which their listings may be in competition. Not only that but agents representing sellers need to know who the current potential buyers in the market are, what they are looking for and who is representing them.
Likewise, a buyers agent needs to know the inside track on who has what for sale, and what properties might be about to hit the market. They have to be aware of which sellers agents they can approach so they can sneak their buyers into a home before it “officially” hits the market, and have a handle on who is a flexible negotiator and who is a hard *ss.
Then we have real estate agents learning about properties, neighborhoods and other matters through talking to each other.
Yes, agents produce the specifications for a home and sellers are required to disclose specific information. However, there is nothing like a group of real estate agents hanging out together and talking about the homes they are representing, or have seen, to really get the inside track. For example, one agent I know had shown their client around a house which appeared, on paper, to be perfect. During the viewing, the neighbors launched into a long, loud, sweary argument and when the agent left, another neighbor was in the street shouting for them to keep it down or she’d call the police again.
The buyers unsurprisingly didn’t put in an offer but more importantly, the agent talked about it with her colleagues, and none of them took their own buyers to that particular property.
Finally, we have gossip, which is a bit of a double-edged sword. Agents sitting around having a good gossip can build strong relationships and allow them to blow off steam, making them less stressed and better able to do their jobs.
What Are The Negative Aspects Of Real Estate Agents Talking To Each Other?
Real estate agents talking to each other to facilitate a sale can also be a negative, depending on the agents involved. The vast majority of real estate agents are ethical; professionals who want to do the best for their client. However, sometimes some of them have a tendency to talk too much. Going back to our agents one and two, agents who talk can sometimes have conversations like:
Agent One “, My buyers, are thinking of making an offer. I’ve told them not to bother pitching under the asking price, but you know what buyers can be like.”
Agent Two “Tell me about it. This seller won’t listen to reason. They are determined to hold out for a specific price, even if it means the house will sit on the market for months.”
As you can see, these agents are speaking with each other too, allegedly facilitate a sale, but not all such interactions are positive, or helpful to the clients.
The same goes for building a professional network; it depends on the agents as to whether or not this is a positive thing.
Some realtors network and feel the need to put other agents down while they do so. When face to face with “agent X” your real estate agent may be all smiles and pleasantries. Meanwhile, as soon as “agent X” has left the room your real estate agent might begin listing all the ways that “agent X” sucks.
Yes, in a way this is building a network, but it is not creating a positive network in which an agent can teach, learn, become better at their job, and consequently provide better service for their clients.
Do Real Estate Agents Talk About Their Clients?
You betcha.
I don’t think there is a single service industry where the professionals who work within it, do not ever speak about their clients. Just as in every other sphere of life it is not if they do it, it’s how they do it that you should really be concerned about.
For example, a friend of mine signed up with an agent to help find a new home. The agent in question seemed a good fit when first starting out, but it soon became apparent that this was not the sort of person with who you would want to work.
Do you know why?
This agent talked. All of the time. About everybody and everything.
“Do you know that house or the corner of Birch and 3rd? I was told by another agent that they’ve dropped the price, I bet they’re trying to avoid foreclosure.”
“The person next door to this home is going through a messy divorce. I know because my friend is the buyer’s agent for one of them. Apparently, it’s all getting pretty messy; you could end up in the middle of it.”
“I’m bringing this home to you first because I told the sellers agent all about my clients and they think you’d be the best option as a buyer. ”
It went on and on until they fired the agent in question and went with a new one who was less likely to be chatting with other agents about their business.
Conclusion
Real estate agents talk to each other all of the time. They swap information about properties, clients, and other agents which can be both a positive and a negative thing. Just as you would with any other professional, take steps to ensure you sign up with a reliable, ethical agent on whom you can rely to talk just enough to help, but not so much they’ll burst your home buying balloon.