This goes contrary to the lore and legend you may have heard about by your parents or those within the “older generations”.
Believe me, real estate was much simpler, even when I first became a Realtor in 1998. Buyers and Sellers met within a meeting room with the agent(s) and lender(if applicable). We all hashed it out and proceed to open escrow(or not). It was very personal.
Then real estate listings became accessible on something called the internet. Everyone had access and the lead generation websites became companies traded on the stock exchange.
Real Estate quickly became more complicated.
I’m sure you wouldn’t hire the same attorney as the person who is charging you with a legal action, would you? Even if that was legal, it would not be prudent.
After serving as a LAPD cop for many years and seeing the legal system at work, I bring this to my career with real estate representation.
Who’s on first?
You first need to understand why hiring your own real estate agent is prudent. The listing agent, the one who has a signed contract with the real estate seller, well – has a signed contract with the real estate seller.
The contract talks about obligations and fiduciary responsibilities between the listing agent and the home seller.
You don’t have that level of love and protection as the seller does, at least not yet.
In some states it’s illegal
Dual agency – where the real estate agent representing the real estate seller is the same agent who is representing the real estate buyer.
In some states, this is illegal. The simple act of the listing agent, whom the seller hired, being the same agent who represents the buyer, who wants to buy that specific home.
For good reason? Maybe – However, the biggest pitch here in the Santa Clarita Valley is “I have a buyer for your home…” You get this online and you will get it via mail and when some of the local agents leave trash on your front door 🙂
If the agent has a buyer, have them bring them to you before you sign on the line which is dotted. Furthermore, ask yourself the question of whether this is the BEST buyer, or should you have another agent list and market your home to ensure that buyer is really the BEST.
Bipolar in a real estate agent
The sellers bottom line? Wouldn’t that be nice to know, as a real estate buyer, how much will the seller reduce their price or give me other concessions to close the deal?
The same agent for both parties equates to the sellers agent having to play hard ball with the home buyer and visa versa.
An impossible task? It Depends.. Read on..
Highest and Best
Is the buyer who is brought to the table by listing agent to their seller really the BEST?
There would be no way of knowing unless the property was marketed and advertised within all of the possible channels.
Although some Santa Clarita real estate agents will offer you a discounted commission if they bring the real estate buyer, you may see you are actually losing money with that proposition.
I’m not a hater, I’m just realistic.
Negotiation like a boss
There are certain timeframes that have to be enforced by the listing agent. The same applies to the buyer’s agent.
As an example, as the sellers agent, there is a time when the buyer’s good faith deposit becomes the property of the seller if the transaction does not close successfully or if the buyer cancels the transaction.
In order for this to happen, the real estate buyer needs to be “served” with that particular document.
Is the listing agent, who is representing the buyer, up for this task? Is the seller going to trust their agent’s response about why the buyer is tarrying the execution of the removal of contingencies document?
Is the buyer going to be comfortable with the seller’s agent presenting them with this removal of contingencies document?
That was 5 reasons why you should hire your own realtor
At the end of the day, know this. I have been there and have represented both sides on a single transaction.
Each side has to be dealt with on a very fair basis. In fact, all parties should be educated as to the process and both sides need to know what it’s going to take for me to do my job 100% fairly with both parties.
Transparency plays a HUGE key in this type of transaction where we are representing both the home seller and the home buyer on the same piece of real estate.
I always inform my seller’s of the content within this article and give them time to consider it. I tell them at the end of the day it’s their decision.
The same with the buyer who calls me about a specific listing I have and am selling personally. I explain to them I’m the seller’s agent. I would be happy to represent them, but the seller will need to Bless the Deal.
I hate the games of hidden agenda’s in real estate. I was a cop way too long to play these juvenile games.
I’m Connor MacIvor over and out 🙂