It might not be hyperbole to describe Alain Pinel as the real estate industry”™s equivalent of a rock star.
Opening his Alain Pinel Realtors in 1990 with a single agent and quickly gained an industrywide reputation for his prescient adaptation of technology as a tool to grow market share. He sold his stake in the company one year later, and would go on to executive roles at Coldwell Banker, William Raveis and Intero Real Estate Services.
The French-born Pinel, who began his career as a journalist before switching to real estate, has authored a new book that encompasses his view on today”™s real estate profession: “Real Estate Behind the Scenes ”” Games People Play,” which will be published in May by Business Books. Pinel told the Business Journal his book is designed as a guide for real estate agents, managers, brokers, company owners, buyers and sellers.
“After the many years I spent in the real estate business with many different hats ”” sales associate, office sales manager, regional manager, vice president, senior vice president, executive vice president, general manager, CEO, president, founder ”” I observed that there is an amazing lack of information and books on the correct or best ways for agents, managers and company owners to achieve greater success by focusing on the needs and expectations of the principals we work for: the sellers and the buyers,” he said. “I figured that with my unique background I could fill the black hole.”
Pinel takes an often-provocative approach with his book, starting with the eye-catching opening line, “Let”™s try to be serious, shall we?”
“It”™s probably correct to say that real estate professionals don”™t have the best reputation,” he explained. “At least not one commensurate with the true challenges and difficulties inherent to helping buyers and sellers deal financially and emotionally with the biggest investment of a lifetime. It is a reputation which is far from the legitimate respect afforded to other professionals like medical doctors, lawyers, CPAs, etc. Most Realtors are good, some are exceptional. They deserve more recognition than they are getting.”
Pinel also writes that “the commission charged by professionals to sell a property is the most controversial” topic in the book, observing that the negotiable aspect of commissions charged by brokerages or agents can create problems in the transaction.
“When money is the carrot, many games can be played,” he said. “Some agents may undercut competitors by ”˜offering”™ a lower fee because they don”™t have another way to get a listing or stay in business. Some may promise extraordinary marketing to justify their fee but end up way short of their verbal commitments. Strange things can happen when money is involved, in this business and others.”
Pinel argues that it is a mistake for Realtors to judge the value of a luxury home mostly on the basis of its square footage, warning that this factor used alone “does not take into account the peculiarities of any given property,” observing that staging appeal, the quality of appliances, views and mortgage costs also play into the equation.
“It often happens that, based on the above factors, a condo commands a value 20% or more than another condo in the same building and the same exact square footage,” he said. “Good professionals can do the math to evaluate the correct value and recommend the right listing price.”
Pinel discussed the rise of the iBuyer sector of the market, praising buyers and sellers for using these new platforms to become more knowledgeable. Still, he insisted, technology can only go so far.
“It does not change the most important point: nothing and nobody can replace an agent,” he said. “A good agent can pin down the right home, in the right market and at the right price ”” online analytics can be goofy with wild and irrelevant guesses. An agent can negotiate the best terms for the buyer and counsel him/her all the way to closing the sale. The process is usually long and full of potholes, with multiple inspections, financing hurdles, title and insurance hazards. It is better to depend on a reliable and trusted adviser than rely on what a tech application can spit out.”
As for the COVID-19 pandemic and its impact on residential real estate, Pinel lamented that “uncertainty has a way to freeze major decisions, except when they cannot be avoided.” He does not see the pandemic”™s economic disruptions as an impossible obstacle.
“We must recognize that the real estate market, regardless of the conditions, is always good for somebody,” he said. “It could be a great time to buy with the lowest mortgage rates ever seen, or with more affordable prices and better negotiable terms due to a reduction in buying interest and demand.”
Pinel has completed a follow-up titled “Real Estate Management Strategies & Tactics ”” How to lead Agents and Managers to Peak Performance.”
“It is a very thorough professional guide that shows managers of all levels ”” from office sales manager to CEO ”” how to make success more predictable, measurable and sustainable,” he stated. “Lots of analyses, studies, tables.”
