In real estate, when a buyer has been searching for a home, and when we go to see it within the hour it came onto the market, only to discover the seller just signed off on an offer, there is no seller or seller’s agent penalty.
Therefore, this type of real estate agent rookie mistake should not be made, and I will tell you how it can be minimized.
There is no stopping an agent or real estate company from pre-marketing real estate listings, at least for now. There are websites that tout they have listings that are not accessible on other sites. Mostly the large brokerages are embracing this new business model of the pocket or coming soon listings. They are doing this to capture the buyer end for their listing agents.
Dual Agency – for the same agent to represent the home buyer in the same transaction, this is still legal in some states, but some are in the process of outlawing this practice. 6 days ago, it was announced, the latest “country” to ban dual agency was Canada(starting in 2019). There are currently states that have it as being illegal. I have a feeling this will become more prevalent in other states. The only thing that has kept this away from California, where dual agency is still legal, has to do with the inordinate amount of real estate contracts and addendums per transaction. We have an entire page of civil codes the buyers and sellers have to read, understand and sign. As a final word, knowing what I know now, I would always want my own realtor so they can fight for me and are not torn between myself (the home buyer) and the home seller(vice versa).
Offers – Price – Multiple offers – by having a real estate listing in only one place where the view of that listing is maybe 10 prospective home buyers at best, what sense does that make to the home seller thinking one of those buyers are going to be the best choice for that seller? Competition drives the market and is the sellers best chance of the highest return on the real estate being sold.
If a seller has an agent who is telling them they are going to bring the buyer, the savvy seller of today does not give that much credit. They want to let the market work in the fashion it has become accustomed to operating in. When there is a seller’s real estate market the home sellers want lots of showings and multiple offers. They want those multiple offers received by a real estate expert who will be able to get those offering to go higher in amount and waive contingencies and shrink time frames.
When approaching real estate, the listing agent has a certain amount of time to announce the home for sale is under contract or pending(also under contract – but stronger verbiage).
If they fail to do so, they can be fined or lose their real estate license.
How frustrating is it when a home buyer has been looking, searching, viewing in person, maybe missed a couple of offers, only to have the dream home enter the market, view it and have it sold before they sign on the dotted line.
Those phone calls are important from me to the listing agent. We need to have a word on my client’s behalf. I don’t want it ever said that I dropped the ball and did not do my due diligence. The listing agents of today know the importance of fielding those phone calls, if for no other reason than to keep the peace. I will eventually have a real estate listing that agent’s home buyer will want, it helps when he answers my questions and me his.
Real Estate is still a very personal event. Between home buyers, sellers, and their agents. There are many more involved in the process that needs to be dealt with at certain levels. I would say if you have hired an informed and communicative Realtor, you have done it right. I’m Connor MacIvor, be safe.