Thanks so much to everyone who tuned in to the show on Saturday! I had been looking forward to this interview for quite some time, and was pleased to have David Faudman, CEO and Founder of the Top Agent Network, join me in the studio. Even an entire hour did not feel like enough time to cover anything and everything real estate…so listen in if you missed out – and check back as David will surely be on again in future shows.

Welcome David Faudman | What Does the Top Agent Network Mean To You?

I started off the show with something that isn’t news to most of us…the real estate market is a complex, dynamic, and unpredictable industry. It takes more than a full-time team to help you make the wisest financial decisions possible…it takes a complete expert network. In building and sharing that network, I welcomed David to our show. Pursuant to my vision of continuing to raise the bar in real estate, David has formed a network that unites the best agents, resulting in the best outcomes.

I asked David to define what the Top Agent Network (TAN) is. David described it as an online club of verified top producing agents per local market. Through TAN, agents have the ability to exchange information that is not available on the MLS. Membership is limited to the top 10% of real estate agents per geographical location, who are screened thoroughly before approval and acceptance.

 My first thought was how the momentum for a group of this type builds. David explained that two methods are used to establish membership…1) TAN may invite members via mail or email that are qualified per the criteria, or 2) Agents hear through word of mouth and apply directly. I was fortunate enough to hear of TAN from my good friend and trusted advisor, John Faylor, who was invited to the Top Agent Network on account of his proven expertise.

The obvious question is what an association like this accomplishes. The not-so-obvious answer is where to start…from the ability for agents to post buyer needs, discuss property scenarios, and share properties prior to MLS publication – the benefit two-fold. Agents gain a network of colleagues who take their businesses and clients as seriously as they do, and clients get preliminary perspective on how their property will look, feel, and perform in the current market.

David described the interaction as a “pre-MLS” introduction. You would be surprised how many connections are made when you have the top 10% of agents networking. At best, a buyer-seller fit can be made with less hassle, more privacy, and greater success. At least, you get a sneak peek of the eye of the general public before hitting MLS.

Maintaining and building integrity is a consistent goal of TAN; since agent actions are extremely transparent to one another, the highest standards of professionalism are required. The result is an excellent service to both agents and clients. What a concept!

Top Agent Network Benefits | Consumers & Members

David and I headed into segment two with a focus geared towards our listener base – how does TAN benefit the consumer? First, David addressed a common trend in real estate news – misleading information and lack of trust. Everyone claims to be the best of the best, the top of their game. You have likely questioned the “top” phenomena – top of what? According to who?

 In this case, you have agents in the top 10% of the real estate field, verified by production and statistics. Consumers who choose an agent through TAN can have confidence in their agent’s ability to manage (and close)  a transaction, and also gain early promotion and preliminary access to many homes. From a seller perspective, you have the opportunity to gather early information about how your home will be received, priced, and an idea of perceived. In addition, seller privacy can be a critical factor in many instances – such as divorce, exclusive property, or highly sought area. Selling can be challenging, and even more-so when your ex-in laws or nosey neighbors want to see your remodeled kitchen…

Through preliminary marketing and utilizing connections, both agents and consumers are encouraged to learn as much as they can about their home, their industry, and their market. If that doesn’t say due-diligence, I don’t know what does. And while connections focus on buyers, sellers, and listings, you also have the ability to troubleshoot issues from plumbers to lenders to appraisal types.

Local Chapters | Client Oriented & Market Based

In segment three, I asked David to address how TAN competes, or not, with the MLS. David clearly explained that TAN does not compete with MLS, and adheres to certain guidelines as such. He acknowledged the MLS as a crucial tool that plays a vital role in the majority of properties that sell and close. David explained the life cycle of a property, from signing the home into a listing, taking photos, determining pricing, etc. The home may appear in TAN and MLS at different stages in the cycle. Agents may place a home on TAN as an exclusive listing, or prior to posting on MLS as a form of pre-marketing and analysis. However, once on MLS – the home cannot be promoted on TAN.

With regions on both the East and West coast, I was curious as to the chapter breakdown of the network. Top Agent Network has about 900 members in its various Bay Area chapters, with another 550 in the East Coast chapters. They are growing membership in both chapters. David has wisely designated chapters according to the way that agents work, and how clients buy and sell. For example, Santa Clara County is divided into two parts – Santa Clara County West (Palo Alto, Los Altos, etc.) and then San Jose. Agents and clients interested in Los Altos have different needs and interests than those in other parts of the county. Growing thriving connections among like-minded consumers and agents is widely useful, rather than blindly drawing chapters neatly into a map.

Current Market Trends

After understanding the purpose, definition, and structure of TAN – I asked David to explain his ultimate goal and vision for the group. With well-formed and fast growing chapters in the San Francisco Bay Area and the East coast (Washington DC, metro areas), David sees TAN now heading into New York city, Scottsdale,  as well as Southern California and Chicago. The market conditions must be right for both consumers and agents to thrive in this type of network.

In addition to chapter expansion, David sees a trend and need for cross-market communication, as well as client portal access through agent invite in the future. Other endeavors include establishing service provider networks connected to TAN with a shared goal of raising the bar and rising to standards of excellence in our industry.

I could not end the show with a real estate expert right here in the studio without chatting the purchase market. In agreement that trends can vary greatly among zip codes and neighborhoods, David and I shared insights into the bubble that is Silicon Valley. With fortunes such as Facebook, Instagram, Google, and countless others right here in our backyard – the effect trickles into your market – even if your home is not at the center of the action.

That dynamic is evident in that the closer you are to San Francisco and Silicon Valley, the closer you are to recovery. Using the 2006/2007 peak, Palo Alto’s prices are about back to where they were during this time. San Francisco is down about 12% from the peak, though less desired areas such as Richmond are still down 70%. If you measure activity via supply and demand, note that 30% of active listings in escrow is a balance of buyer/seller needs. What we are seeing today is 50-70% of listings in escrow, pointing to a seller’s market unlike any other David or myself have seen in some time, if ever.

With variations in areas that are dragging and driving, the general agreement is that sales are up everywhere. However, the wake-up call is that not all areas are seeing the recovery and pricing improvements that we have here. We have venture capital, we have technology, we have Tahoe and Napa a short drive away…thus we have value where other localities are lacking.

One last warning…high demand means multiple offers and stiff competition. But don’t let your desire to win mean that you are paying more than 20 other people were willing to…unless the home is really worth it.

4/28 Wrap-Up

Last but not least, I thanked David for joining our program, adding value, and connecting a thriving team of trusted professionals.  Feel free to contact David with any additional questions at david@topagentnetwork.com or email me and I will be sure to connect you. Thanks for listening – and tune in next week for another engaging hour of Real Estate 360 Radio! ~ Joe