Agent vs. Salesperson - What Is the Difference?

AGENT VS. SALESPERSON: WHAT IS THE DIFFERENCE?

The other day I posted my thoughts on dual agency, as it is practiced by real estate salespeople in Virginia. My opinion: It is actually impossible to represent both the buyer and the seller, EVEN IF the buyer and the seller are adequately advised of the consequences and sign all the appropriate disclosure forms. I chose the word "represent" intentionally, because I think representation requires affirmative action on behalf of your client. As an effective agent, IMHO, you should be developing terms for an offer or counter-offer, doing research to support that offer or counter-offer, constructing a rationale for the offer or counter-offer terms, and advocating your client's position in negotiations with the other party's agent. Then, once you have a ratified contract, you need to be managing that transaction to closing.

Notice I didn't say anything about finding these hypothetical clients the perfect house (buyer side) or marketing the house (listing side). In my opinion, finding a house for a buyer, or putting a house on the market for a seller, are the EASY, NO-BRAINER things that real estate agents do. The HARD things - structuring a deal, negotiating an offer, getting to "yes," and managing a contract to closing -are often not even considered when a potential client is selecting their agent. I think that is a completely bass-ackwards way to approach the interview process for a professional service provider. For example, on a "listing appointment" lots of agents will show the potential client the signs, the pretty brochures and the marketing pieces (s)he will produce for the home. My question? Who cares! Any brokerage can churn out that stuff, it all looks pretty much the same, and it has next to NOTHING to do with getting your home sold. Can that Realtor advise you on preparing your home for sale, pricing your home appropriately, dealing with obstacles in this challenging market - appraisals, financing, inspection issues - when you have a willing buyer and willing seller?

An agent in my office, who has been in the business much longer than I, and who I respect very much, made me start thinking about this issue. She pointed out that there is a difference between a salesperson and an agent. The SALESPERSON wants to get an offer on paper, to make the sale, to "seal the deal." They want their buyer to buy quickly, or their seller to sell quickly, so they can get that buyer or seller committed to a contract and they can move on. Oftentimes, once there is a ratified contract, the salesperson hands over the file to a transaction manager and has very little involvement in getting that purchase or sale closed.

The AGENT, on the other hand, is actively working with the buyer or the seller, trying to understand their needs and motivations, sharing their expertise to help that buyer or seller make the best possible decisions, and helping their client get the best possible ultimate result - either getting the buyer into the right house or maximizing the seller's profit while meeting that seller's other objectives.

Getting a buyer into the right house may mean advising them AGAINST a particular purchase. For example, a buyer may not be able to afford the house they really, REALLY want. Maximizing the seller's profits may mean hard negotiating to get an offer price up, or creative structuring with non-price terms to otherwise advance that seller's objectives. It isn't beating up a seller to take a low-ball offer, so you can get your commission and move on down the road.

In my real estate practice, I have run across a lot of great salespeople, and some great agents. I'd rather try to be the latter. That may mean I don't seal as many deals. I've got buyers that I have been working with for just A-G-E-S, and I probably could have pushed them into a contract...or two, or three....by now. A better salesperson than me certainly would have. I'm not going to get as many listings as the top Realtors in my area. I'm terrible at the cold-call and frankly just don't want to do it. I won't "buy" a listing by giving a seller a sky-high list price, and then recommending a price reduction almost immediately after the listing agreement is signed. I'd prefer my sellers find me because of reputation or referral.

I think I'd make more money if I learned how to be a "closer," and focused on being a better SALESPERSON. But I'd rather work to be the best d*mn agent I can be. Goodness knows, I've got weaknesses I can try to improve. I need to figure out how to systematize my communications with both my buyer and my seller clients. I feel like the sellers get a bit neglected, with a "silence means no news" sort of approach, because the buyers' needs are so time-intensive. If I were a seller, I'd want periodic updates. I haven't been able to execute on that goal yet, which makes me frustrated and disappointed with myself. I know I get busy and I get sloppy - both literally and figuratively. Trying to juggle buyers, sellers, and prospects, AND running my household and taking care of my daughter, gets overwhelming for me. And I tend to be my own worst critic, so I beat myself up for the things I am not doing well.

I wish I had a detail-oriented assistant to keep me on track and on time, and to whom I could off-load much of the administrative work. But that would require me to make more sales....[:)]