Luxury Home Sellers
Why You Should Use SimplySOLD™ For Your Luxury Property Sale.
Function vs. Fidelity.
There are two types of real estate agent activity. “Functionary” activities are routine tasks that anybody can accomplish, and include any activity technology can handle. Functionary tasks do not require a high level of expertise. The best example of a functionary duty is marketing activities, such as creating a flyer, ad or website.
In most cases functionary activities can be done by an agent of any level of experience and knowledge. Agents prove that when they hand you over to a “team member” such as an “assistant,” where your work will be processed in just like that of everyone else.
In contrast, “fiduciary” activities are those accomplished as a result of education, commitment to learning, and willingness to place the interests of the client first. Fiduciary activities require specialized and expert knowledge, and because of that, involves activities very different from functionary ones.
In the attempt to get your listing, agents will mainly discuss functionary activities. But most of this work is routine and typically follows a “one size fits all” template. The importance of these functionary chores are overemphasized, and attempts are made to make them look unique.
Fiduciary activities are different. Obtaining fiduciary level skills come at a price – they are difficult and time consuming to achieve. Agents are not required to have them – and because fiduciary knowledge is difficult and time consuming to obtain, agents do not obtain this expertise.
That is because the Arizona Department of Real Estate (ADRE) only prepares licensees for functionary work. Agents are not required to have any schooling (no elementary, middle or school high school is needed), and the sole pre-licensing education requirement is a course that totals only 90 hours (ironically your barber, hairstylist and nail tech has to have 1600 hours and at least two years of high school). This is not adequate and the ADRE knows it, as they admit that its requirements satisfy “minimum standards only”.
As a result, the AAR form of Contract you will sign has been prepared at a 7th grade level – so agents can read it!
Continuing education and the “training” agents get from their brokerages is also deficient. A real estate instructor told REALTOR® Magazine that “the average real estate training program is no program,” no doubt because they focus on getting listings as opposed to getting more expertise. He said agents don’t want to take the time to learn, and the only reason agents do continuing education is because it’s required by law. They don’t try to fill the gaps in their knowledge because “they don’t even know they’re clueless.”
This lack of education and fiduciary skill places agents at a distinct disadvantage throughout their career, despite whatever level of experience they gain and how many homes they sell.
Real estate practice in Arizona has become increasingly complex, and the expertise required to sell and manage your luxury home’s transaction has increased dramatically. As a result, there are many legal issues and real estate choices in a luxury sale. A license must be aware of all of these options to be able to guide the client to the best outcome. That process – and reaching informed, knowledgeable decisions, depends on fiduciary expertise.
Unfortunately, fiduciary level representation is difficult to explain, and is conducted mainly in the background. So most sellers fail to place adequate emphasis on the qualities of education, knowledge, experience and loyalty.
N. Mark Kramoltz is an experienced broker (licensed since 1995), real estate attorney, and an Arizona Certified Real Estate Instructor. He has made a commitment to mastering all the technical and legal nuances necessary for the sale of homes, and is an acknowledged real estate expert.
Modern luxury home representation necessarily includes knowing about the law. The licensee must know the law and what fiduciary duty requires, so your legal rights are preserved and you are protected from the possibility of litigation afterwards.
Knowledge of the law and its duties is NOT academic or subsidiary. Agents are required to know the law because the ADRE states that “[t]he Arizona constitution requires agents to represent their clients in a transaction much like attorneys represent their clients in court.” How can agents represent clients like attorneys when they haven’t gone to law school? Simple: they can’t! Agents give incomplete or inaccurate legal advice, or require you to spend money hiring an attorney. Mark’s fiduciary expertise means that you get properly prepared documents and appropriate legal advice – no extra charge!
Mr Kramoltz’s focus on detail, education, and experience means HE KNOW THE MARKET. He researches market conditions and analyzes sales with accuracy. Don’t be fooled by “area specialists”. No matter how many sales they claim to have done, they still can’t provide fiduciary representation. Mark’s specialized knowledge and ability means he will expertly evaluate the value and marketability of your luxury home.
Finally, he handles your transaction! You work with Mr. Kramoltz directly through the pre-sale process and during the critical escrow period prior to closing. You will not be dumped off to another agent or “assistant or coordinator.”
Higher Ethics – no Dual Agency.
Dual agency means representation of both buyer and seller. An agent can’t provide fiduciary activities for both sides simultaneously. So fiduciary service can’t be provided while acting as a dual agent. Despite doing less, agents engaging in single agent dual agency get paid more – receiving both the sellers’ and buyers’ side of the commission! By ‘double dipping’, and receiving all of the commission dollars, they put their wallet ahead of your best interests.
Agents often disguise dual agency from luxury sellers by using terms like an “exclusive listing,” which is also known as an “off-market” or “pocket” listing. This type of listing means the home won’t be active in MLS. But the AAR (our Arizona Realtor organization) said “it can be argued that the agent is violating Article 1 [of the Code of Ethics] if a property is not marketed to a larger audience via the MLS so that the seller can receive more competitive offers.”
Whatever advantage an agent claims an off-market luxury listing has, it almost never supercedes this lack of market exposure.
Attorneys can’t represent two parties whose interests differ, rigorously avoid any conflict that could harm a client, and are not allowed to put their interest ahead of that of the client. But the real estate industry doesn’t follow those rules, and as dual agency shows, they won’t let loyalty get in the way of their wallet.
Mr. Kramoltz will not under any circumstance act as a dual agent and short change you by working for the other side. You receive exclusive fiduciary duty, and your interest is always put first!
If you can find someone with better qualifications, hire ’em!