Buying A Home

The Buyer's Agent

There is a television show that takes one set of buyers, usually husband and wife, and lets them look for a house with two different real estate agents. My opinion: the show should be taken off the air. Why? Isn't a good thing for the agents to compete to get the best home for the buyer? No. Let me give you some things to consider:
1) If an agent has a few buyers to work with, who do you think he'll be most loyal to? A serious buyer wanting to make an offer, or a buyer that might wait to see what the other agent can do?
2) An agent that is in competition to close a sale might become a high pressure sales person or "stretch" the truth.
3) In any given market, both agents will have access to the same houses.
What it boils down to, is picking an agent that listens to what your needs are. If an agent shows you homes that do not meet your liking, let the agent go and choose a new one. Buyers often have very little invested in their agent, but the agent has a lot invested in the buyer. A buyer's agent spends more than gas money. A good agent will spend hours previewing homes, and doing market research about the value of these homes before ever putting the buyer in the car. A buyer who is loyal to one agent will find the agent more motivated to help even above the scope of duty (such as hauling a cord of firewood for a client that doesn't have a truck).

What about those Sunday afternoon open houses? Do you know who your agent is? If you decide to make an offer, remember that the agent holding the home open most likely works for the seller. That is not always the case however. Sometimes, if an agent has more than a few listings, that agent may ask someone else in their office to be at the open house. Whatever the circumstance, you as a buyer should inquire where the agent's loyalty lies BEFORE making any statements about the home, or an offer on the home. Anything you say to a seller's agent can be used in negotiations against you.

There is another difficulty in walking into an open house without your agent. Not only can remarks be used against you when you make the offer, did you know the agent that shows you the home to you first can actually file a grievance against the agent that writes up the deal for you and take away their commission? The showing realtor could say that they pointed out all of the features, and they were the one that convinced you to buy that particular home above any other. The argument would be that they sold the home, therefore, they deserve the paycheck.

Let me insert my philosophy here. Years ago I worked on a used car lot. It was a dealership where new cars were also sold. I once saw the used car manager spray silicon on a squeaky belt. When I asked why he didn't have the mechanics fix it, he replied "why bother?" A 15 minute fix in the garage to tighten that belt would cost $30.00. Let's say a parent bought the car for their high school graduate daughter. The loose belt causes problems and she gets stranded. Dad has to rescue her. All the next day he groans to his co-workers about his lousy night because of this stupid car at XYZ dealership. How much money was lost in future deals? If the belt was repaired, Mom and Dad might buy another child a car there, or buy a brand new one for themselves. And of course, they'll tell the co-workers what a great deal they got on a solid used vehicle. Get one sale, or get 10 future sales? If this was your business, which would you choose?

I ensure my buyers are prequalified in order to stay within their means and also to avoid wasting time and energy on "lookers" that are just curious. When I take a client out, I show them only the homes that have the features they desire. I pay attention to priorities, needs, wants, and absolutes. In order to stay in business, I rely on referals from satisfied customers, and clients returning when their needs change. Every house bought or sold is important, and will be given the special attention that is needed. I understand that there is more to customer service than just closing the sale.