So often we are writing on tips, trends, market news etc and very rarely do we “gripe”…Well, here goes a gripe and I think it’s our first…probably our last too as it’s not exactly a good thing to do in our business, but I think this one is relevant and useful information; not just a gripe hence I’m posting about it. Every Realtor doing business knows of this issue and we felt that maybe it was a matter of people just not realizing how Realtors work that causes this, so after having this happen today I’ll mention it here and it can only be described with one word, loyalty.
By all means we would be the first to say if you don’t like who you’re working with be it a Realtor, lender, doctor or whatever ditch them, absolutely. Some Realtors use a “buyer service agreement” which is essentially a contract locking a buyer into using that Realtor to represent them if they buy a home in the next X number of months, similar to a listing contract to sell a home. The problem with these however is if you discover down the road that you’re Realtor is not working to your satisfaction you shouldn’t have to use them in a transaction, so we don’t use these. We believe home buyers (or home sellers for that matter) should have the right to fire their agent at any time if they are not satisfied with the work being done.
Basically the gripe is this, if you’re working with a Realtor you really like, they are doing a good job for you etc then use that Realtor when it comes time to write an offer regardless of other circumstance (like the ones immediately below).
Here’s one of three examples of this that are the most common. You wander into an open house, you really like the home, you chat with the agent for a while (who is there working for the seller and hoping to pick up a buyer or two by the way) and you leave really loving the home but thinking you need to see more of what’s out there before making a decision. You come across another Realtor that you begin working with, they are doing a great job for you, working hard etc but you end up deciding on that home you came across at the open house before meeting you’re current Realtor. What do you do? Well, what you should do is have the Realtor you’re working with write the offer and represent you, but unfortunately every so often that buyer will go back to the listing agent. Now that listing agent is getting paid twice, in most cases, for that sale and the agent that’s put hours, days (weeks? months?) into you is not getting a cent. All that time and effort and nothing in return not even referrals, as is a big driving force in this business (you’re not going to refer the Realtor that didn’t handle your transaction, only the one that did right?).
The other example we see this happening is: “I only work with the listing agent”…The idea being the buyer thinks they can get a better deal on the home if they work with the listing agent of the home…I’m not about to say this isn’t possible, it certainly is, but it’s not even remotely close to common that it happens this way and in fact in a situation where an agent is doubling ending a transaction if anyone is going to miss an opportunity for a better deal it’s going to be the buyer as the listing agent has a legal contract with the seller and a more in depth relationship and history with the seller, not the buyer. Agents double ending a transaction are of course working within a very specific framework and regulated set of ethical rules and fiduciary duties to both the buyer and the seller and as such are being very careful to not make a mistake during the negotiations that could bite them later, sometimes resulting in a missed opportunity for the buyer to get a better deal. Additionally the agent also knows details from each side that they cannot share or use during negotiations where as another agent can pry a bit more and use more of what they learn and know without concern of breaking a fiduciary responsibility to the seller (though they do have a responsibility to all parties involved to be fair, honest and ethical).
The last example is really simple, you’re working with whom you feel is a great Realtor, doing a great job, one Sunday you’re driving around on your own checking out neighborhoods, you pop into an open house that looks nice, decide on the spot you love it and you want it. You then use the agent there at the open house to write up an offer. You then you call your Realtor that’s been busting their hump for you and excitedly tell them that you found a home and you just signed an offer on it! Woohoo!!! Don’t be surprised when you’re agent isn’t quite as happy about it as you are. Meanwhile the agent there at the open house, that’s probably a new agent working some other agents listing in hopes to pick up a buyer, well, they’re happy as a clam, you just made their day.
The issue today that brought this up doesn’t entirely qualify as we didn’t even meet the client, only a few phone calls and emails so not that big of a deal, but I thought maybe it prompted a good opportunity to blog on this topic. Basically this person was 100% sure they could not get financing for a purchase after trying to from several banks & lenders. When they found us we were able to utilize our resources to get them in touch with someone that was able to help them; they were just amazed and very thankful. They then proceeded to contact the listing agent of a home they found before meeting us to write an offer on it, using that listing agent.
Even though we didn’t spend very much time with this person it’s still interesting to us that the thought of having us, the Realtors that helped them and put them in a position to be able to purchase when no one else was able to, represent them in making that offer never crossed their mind. Of course considering how little contact we did have with this person they could have been working with that other agent for a long time and just never told us, again, was just sort of a “tickler” for us to blog on the topic. Don’t get us wrong, we certainly wish them the best of luck and happiness in their endeavor to purchase that home and that’s what this business is about, making things happen for people; we just would have appreciated their business.
More often than not we’re able to combat this problem by simply doing what we do best, being knowledgeable, easy to reach, proactive and on the ball, but every now and then one slips by and well, it is what it is.
