The Importance of Relationships in Real Estate

In some ways, I love technology and automation. I believe in fairness in situations such as when bids are solicited. I believe in employers objectively considering job applicants based solely upon their qualifications but as I’ve grown older, I’ve also realized there’s still a place for old school relationships and networking. The key is finding that fine line…that balance. Now when it comes to the business of Real Estate, that concept of old school relationships and networking is actually vitally important. Allow me to explain why I say this.

A high-octane REALTOR® is one I like to refer to as a quarterback. This person needs to know a good bit about each component of the transaction but doesn’t have to be the subject matter expert in each area. What a quality REALTOR® has at his or her disposal is a network of professionals he or she calls in to best serve clients. These professionals can include lenders, inspectors, attorneys and sometimes contractors.

Some clients come to us wanting to use one of those flashy national lenders who have cool apps which are visually attractive and user friendly. Clients are also drawn to the various Real Estate apps which are also quite flashy and trendy. These national companies spend millions on advertising to win your business, but do you know what they still don’t have? They don’t have old school relationships with the local professionals you need to bring a transaction to fruition. Now it’s ok if that professional is affiliated with a national company, so long as they themselves, are based in a local office.

Real Estate transactions can be stressful even when most everything goes smoothly, but when problems arise, they can be especially stressful. So, if your lender is based in Missouri, they probably don’t know the local REALTORS®, attorneys or even contractors. Communication can truly suffer, which then causes the buyer or seller to endure even more stress! On the flip side, when all parties know each other, they tend to work better together and communicate effectively. They have ways of resolving issues more easily due to connections with local resources.

You might have noticed when I mentioned a good REALTOR® is like a quarterback with a network of professionals, that I didn’t include appraisers. This is because in a traditional transaction, the REALTOR® cannot have any influence on which appraiser is selected. The system in place, is used to prevent potential corruption. You certainly wouldn’t want the other side of your transaction to unethically influence an appraisal. Would you? Many REALTORS® will give you two or three recommendations for lenders, inspectors and contractors so that YOU still have the power to choose. As I always say, there are good and bad folks in any profession. You need some recommendations…you need your REALTOR’S® network, but you should still have control on these major decisions.

Find a REALTOR® who will be YOUR quarterback. One who will bring professionals to the table to serve you while still empowering you on one of the biggest financial commitments you may make in your life.

Brian McCommon, 2024 MBOR President