Pat Kennedy - Your Washington, DC Real Estate Connection

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Is Your Buyer's Agent Throwing You Under The Bus??

This is a blog that every buyer should read.  If you are a good buyer broker, you might even print it out to give to your clients.  And I gotta say, I think that a lot of buyer borkers are representing, not their clients, but their checkbooks!  So read and learn!

BusIs Your Buyer's Agent Throwing You Under The Bus??

We're primarily listing agents, meaning the bulk of our work is done with Warren County home sellers.  Sure we'll work with home buyers, but our focus is on attracting buyers for our sellers' homes.  We'll market everywhere we can reasonably expect to find buyers for our homes.  Cincinnati and Dayton MLS both of course, our blog, websites, Trulia, Zillow, Craigslist, flyers and mailings, all for the purpose of that one right buyer that matches that home.

Now if you're an area buyer, hopefully you've realized the importance of having your own, dedicated solely to you REALTOR®!  An agent whose sole allegiance is to you and your best interests. 

SuperagentA great buyer's agent will work with you to find a mortgage expert to get you approved, help you search for candidate homes, and then take you through those homes until you find THE ONE that you write a contract on!  They'll advise you on market trends, the negotiating process, the inspection process, and what it takes to get those keys in your hand.

Wait a sec you say?  Your buyer's agent is telling you it's okay to go to the listing agents direct to ask to see all the homes you want to see, and then give them a call when YOU find the right home for THEM to write that offer on?  Maybe they're even offering to rebate you some of their commission since they're not showing you homes?  Or they're too busy to make it today but they say it's "okay" for the listing agent to show you the home?

Hear that loud BEEP BEEP BEEP sound??  That's the big ol' bus that is about to back up and flatten you!  Because when you call to ask us to show you our listings, we're going to ask if you're working with an agent.  Now if you aren't truthful and say "No", then of course we're going to show you our listing....and the fact of the matter is if YOUR AGENT calls us to make direct arrangements with us, most likely we'll honor your agent and show you our listing because our primary job is TO SELL THE LISTING!
Lebanon Ohio Home For Sale

Now ask yourself "Who do WE (Liz and Bill) work for?".  What's the answer?
  "The SELLERS!".  Period.  That initial contact forward, our responsibility is to get YOU to pay the most possible, and for our sellers to make the least possible concessions to keep the deal together.

Don't mistake our friendliness for thinking we're working for you.  We are not

If we're friendly, [because we are] you're going to relax a bit.  Hopefully, it puts you in a more receptive mindset for that seller's home.  And oh yeah, it might also mean you let your guard down.  We'll ask a few subtle questions that help us gauge whether you're a legitimate buyer, how much interest you have, maybe find out where you live, how many kids you have, why you're moving, etc.  All seem innocent enough on the surface?  Maybe, but those elements together may give us all the clues we need to know how hard our sellers can negotiate with you and your buyer's agent (you know that agent you said you DIDN'T have?).  It's called LEVERAGE.  A "buyer's" agent who advises or approves of THEIR buyer previewing homes with the LISTING agents is giving your leverage away! 

For example, we find out you've only got four weeks left to get out of your home and you don't want to do temporary housing?  THANK YOU VERY MUCH!!  Woo hoo, jackpot for our sellers!  They don't have to move too much off price....just enough to get you to sign the papers.  Now it's a week later and you ask for inspection items.  Take it or leave it....or maybe contract timewe'll advise our sellers to stand more firmly and only agree to fix minimal, simple, less expensive things just enough to keep you under contract just because we can! 

So let's take the example out a bit further.  Assume the list price of the home was $200,000 and your agent offered to give you 1/3 of their commission for not having them show you homes.  So your agent is going to rebate you a couple of grand give or take a bit.  Now with that information you provided us, how much extra do you think you paid for our listing?  We're betting more than a couple of grand more than you "saved".  Now add what you lost during the inspection phase.  The hole just got deeper didn't it? 

And the bad thing?  You don't even realize that you and your buyer's agent cost YOU money.  You may cuss us and our sellers out for negotiating so hard, but you know what?  We're okay with that.  WE WORK FOR THE SELLERS.  Our seller's opinion is the one that counts to us.

This is another case of being cheap, being expensive.  Hire a good buyer's agent.  Have your agent take you to ALL homes if you want to make sure your confidential information stays confidential and your interests are the ones being served and PRESERVED. 

The FIRST time you meet us as listing agents should be at the closing table!

Serving Warren County's residential real estate needs,
Liz and Bill aka BLiz

The Liz Spear Team
Elizabeth & William Spear
RE/MAX Elite:  Ask for us by name if you visit the office!
Two locations: Lebanon & Mason, OH
Office direct: 513-248-3660
  Liz direct:  513-265-3004
Bill direct: 513-520-5305 Fax: 866-302-8418
      EHO

MailTo: Liz@LizSpear.com  Our Website: Warren County Ohio Homes

 

 

 

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Comment balloon 17 commentsPatricia Kennedy • January 09 2012 11:02PM

Comments

HI Pat - Great reblog!  I hope every buyer sees it.  I know there are some listing agents who tell buyers they can save money by letting them handle both sides of the transaction, but in many cases (not all I guess) they are not saving anything if the listing agent is working primarily for the seller and is not working to get the price reduced.  Many buyers don't understand that they don't pay commission on top of their purchase price, so unless the purchase price is reduced, they save NO money by buying from the listing agent.

Posted by Susan Neal, Fair Oaks CA & Sacramento Area Real Estate Broker (RE/MAX Gold, Fair Oaks) almost 9 years ago

Nice re-blog Patricia. I am looking forward to inclusion of this in your weekly post...

Posted by Praful Thakkar, Andover, MA: Andover Luxury Homes For Sale (LAER Realty Partners) almost 9 years ago

Wow. I missed this one. A great post. I agree, a good one to send to our clients........PS. I take full responsibility for the snow!

Posted by Ellie McIntire, Luxury service in Central Maryland (Ellicott City Clarksville Howard County Maryland Real Estate) almost 9 years ago

Hi Patricia, thanks for bringing this post back around.  It is a great post for buyers to read though you do have the buyer that wants to see ALL of the listings in Cinncinati which makes it tough on buyer's agents.  Best of success to you this year!

Posted by Jordon Wheeler, J W Group Real Estate Sales and Service (The Jordon Wheeler Group) almost 9 years ago

Most buyers don't realize who they are represented by but the sellers can easily be thrown under to.

Posted by Charles Stallions Real Estate Services, Buyers Agent 800-309-3414 Pace and Gulf Breeze,Fl. (Charles Stallions Real Estate Services Inc) almost 9 years ago

Pat, Thanks for the reblog!  Appreciate the extra publicity for the topic.

Posted by Liz and Bill Spear, RE/MAX Elite Warren County OH (Cincinnati/Dayton) (RE/MAX Elite 513.520.5305 www.LizTour.com) almost 9 years ago

Pat

What a great read. I see this every so often with buyer agents

Posted by Tom Braatz Waukesha County Real Estate 262-377-1459, Waukesha County Realtor Real Estate agent. SOLD! (Coldwell Banker) almost 9 years ago

Hi Pat!

This really hit home.  Nothing can frustrate me faster than someone who calls to ask to see a property, I arrive and then they tell me that they just didn't want to "bother" their agent!!! REALLY????  They feel just fine taking me away from my family though!   Sometimes they will ask if I work with them directly, will I give them a discount on my commission.  My answer?  I have already negotiated a commission with my seller and the buyer pays no commission....so no!
Paula Swayne

Posted by Paula Swayne, Realtor-Land Park, East Sac & Curtis Park -Dunniga (Dunnigan, Realtors, Sacramento (916) 425-9715) almost 9 years ago

thank you for writing what we are (or at least many of us) all thinking

Posted by Lehel Szucs, REALTOR of choice (All Seasons Real Estate, Inc.) almost 9 years ago

Hi Pat this an excellent re-blog and one i certainly agree with from Bill and Liz's perspective. I need to go and post on their blog. Great topic.

Posted by William Johnson, Retired Real Estate Professional (Retired) almost 9 years ago

Pat, BLiz did a great job on this one.  And,  it really gets the point across.  

Posted by Ron Marshall, Birdhouse Builder Extraordinaire (Marshall Enterprises) almost 9 years ago

Wow! Glad you reblogged this or I probably wouldn't have seen it. I will be giving Liz and Bill kudos, as well, but I have to say I still am dumbfounded at agents who expect other agents to show them a house. "Do your job" is all I can say to them.

Posted by Peggy Wester, Real Estate Agent Ozaukee & Washington County (Realty Executives Integrity) almost 9 years ago

missed this one I am going to comment directly on Bill's post to share

Posted by Marilyn Boudreaux, Lake Charles LA Century 21 Realtor (Marilyn Boudreaux, Century 21 Bono Realty) almost 9 years ago

What a fabulous post - I'm sorry to have missed this one. Will have to pop over and leave them a comment. THanks for bringing it to my attention.

Posted by Karen Crowson, Your Agent for Change (Coldwell Banker Residential Brokerage) almost 9 years ago

Seems like there are two kinds of buyers agents who most often take the approach being warned of in this post:  discount brokers and highly successful listing agents.

Posted by Jim Hale, Eugene Oregon's Best Home Search Website (ACTIONAGENTS.NET) almost 9 years ago

There are a whole set of buyers out there who are not truly getting this instruction/advice from "their" buyer's agents.  They are getting it from on-line "self-help" websites and similar but low-tech media sources.

"Their" buyer agents are often in the dark about the buyer's intent.

Posted by Jim Hale, Eugene Oregon's Best Home Search Website (ACTIONAGENTS.NET) almost 9 years ago

Thanks for reblogging, Pat! This is excellent and I am going to the original post to comment there too!

Posted by Peggy Chirico, REALTOR® 860-748-8900, Hartford & Tolland County Real Estate (Prudential CT Realty) almost 9 years ago

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