Caution! - Should you just call the agent on the sign?
Hello everyone,
I just wanted to share some information on how the buying process really works. Sometimes buyers reluctant to work with an agent go driving around and grabbing flyers hoping to find their next dream home. They don't want a pushy salesman forcing them to buy any home they look at. Many people don't think they are going to buy and are just looking but end up finding a home they like and just going for it. They call up the agent on the sign or flyer and say they are interested in the home. Caution! This situation happens many times and what buyers don't realize is the situation they put themselves in. The agent that they are talking to doesn't represent them, they represent the seller and anything they tell that agent who seems to be helping them along can be told to the seller.
We are going to talk about what is called dual agency. Many problems arise from this type of representation. When you talk to the agent of the house you like, they are actually working for the seller and once they start providing services to you they may become what is called a dual agent. The problem is when does this happen. At what point do they start to represent both parties if at all. They can elect to just represent their seller and not you. This can get very tricky and at what point does what you say become confidential. See most people should avoid Dual agency. An agent must have very high ethical standards to help both sides. The problem with dual agency is when you just call the agent representing the seller and don't use your own buyer's agent that many times means the seller's agent will pick up both sides of the commission depending on what they negotiated. Say the listing agent negotiates a 6% contract with the seller, they may take 3% and offer 3% to any buyer's agent. If you come and don't have an agent the listing agent will get a double paycheck.
Where this can create a problem is that agent if they don't have a high standard of ethics may try and just make things work even if it's not in the best interest of their seller or the buyer. With the prospect of making a double paycheck they may or may not push harder in negotiations, they may or may not demand issues get taken care of in the home inspection, they may or may not give the advice in the same way as if they were not representing both sides. Also they are advisors so when they know what you will and won't do again neither party may be getting the same type of consultation they would get if each had their own agent. I have done dual agency many times, but I also hold myself to a higher ethical standard than many people and still you have to be very careful making sure to say and do the same things you would do with any other clients and not include what you know about the other client in the advice you give to the other party.
In the end since many times they have never met the seller's aent until they called on the sign, it's probably better to have your own agent and then write the offer on the house. This goes back to what I have said many times and I outline in my "Buying a home, Where to start" blog. You need to find and choose a real estate agent before you even start "just looking" Find one who has tools for you to use to browse homes, and yet is not pushy and will wait as long as it takes or forever for you to buy a home. Really they should be willing to help you even if your don't end up buying. That kind of attitude backed up with real expertise should be a winning combination. Not to toot the old horn, but we are just that kind of Realtor. We help people in phases of the search getting them set up with tools and advice before they even just start poking around with the idea. We don't push anybody and are always there as experts so when they find a home even though they were not seriously looking, we're there and we already have got to know each other. Whether you choose us or someone else make that relationship first and you'll avoid the oops we bought a home without our own Realtor mistake that many find out the hard way is a costly mistake.
Thanks again, and look forward to more information coming as I'm always out helping educate people on the home buying or selling process. Don't forget to check out our website for information and tips on all aspects of buying or selling homes in Spokane Washington and check out our Blog at www.TeamQuintana.com Click the "My Blog" button on the bottom left and check out our thoughts. Please also leave feedback if this was helpful and feel free to email us at ross@teamquintana.com Soon we will have our own home buying Podcast you can subscribe to for weekly tips on home buying and selling. Till then Have an awesome week
"It's what you don't know, that can hurt you"
Ross Quintana
Team Quintana Real Estate - MJ McAdams Realty
509-362-1966