Have you ever driven by a home for sale and noticed that
sign indicates that the real estate agent was from an office that is in an
entirely different area than where it’s listed?
An example of this would be an agent listing a home in Castle Hills
(Lewisville), but their office is out of Southlake. Or a “Castle Hills area expert” listing acreage
in Mansfield…it makes you wonder if that agent has true Geographical
Competency in the area they are selling in, and the “type” of real
estate they are selling. This has become
a major issue and is currently a really HOT topic at both TREC (Texas Real
Estate Commission) and at The Texas Realtors Association. TREC says, Rule 531. 4:
Legislation passed by the 86th Texas Legislature made
clear that license holders must be knowledgeable about local market issues in
the geographic area in which they work and the characteristics involved in the
specific type of property being sold or leased. The Texas Real Estate Commission
made corresponding changes to Section 535.2, Broker Responsibility, earlier
this year which requires brokers to ensure their sponsored agents have
Everyone knows that there are fewer listings out there to go
around due to the low housing inventory that we have in North Texas (& just
about everywhere in the US!). So some
agents may think it’s OK to sell outside of their area of expertise; but this is
not doing any favors for both buyers and sellers! How can an agent know exactly what’s going on
in a certain neighborhood if they don’t typically buy or sell there? Or how can they be an expert in Farm and Land
sales if they normally sell residential homes.
The short answer is, they can’t!
So why should you trust that your real estate agent has your best
interest in mind? A couple of exceptions
Your REALTOR® owns investment properties in
one area, but their office is in another city. They would know that other area
because they keep up with the neighborhood (which includes the school district,
restaurant scene and services available nearby), the HOA CCR’s and the current
real estate market there because they own property that is subject to
re-leasing on a regular basis.
They went through the entire new home
construction process from contract to close with a Client, and that Client now
wants to sell the home. Since this
process typically takes up to a year or more, that Agent would definitely know
the area AND can say that they have Geographical Competency there!
The agent used to live in that area for years
before moving some place else, and they still have friends or family that they
visit there on a regular basis.
I personally have some real-life scenarios of Clients who
relied on Agents who did not have Geographical Competency, but that would be a
WHOLE other blog post! So, bottom line,
hire a REALTOR® who knows their “stuff” and is a true expert in both the
location and the type of real estate you are looking to buy or sell. Or rely on your real estate professional to
refer you to someone they know who does!
Are you willing to gamble with the sale of your home? . Lower your risk by choosing the right REALTOR. At Castle Hills Real Estate, we are neighborhood experts with tons of experience and knowledge about the Castle Hills market.
As REALTORS®, our relationship with our clients seldom ends at the closing table. We strive to keep in touch with clients even after the home sale and continue to be a resource for them whenever possible!
November is a time for reflection and giving thanks. Castle Hills Real Estate has had a record-breaking year thus far in 2022! So we wanted to take a moment to recognize ALL of our Buyers and Sellers who chose to work with us on their home selling or buying…