Agents not equal
While the best protection and service when selling real estate comes by way of hiring a Realtor, not all Real Estate agents are created equally.
However, that is rarely the case.
Best possible offer right?
Most real estate sellers want to get the best and highest offer possible. This is true, think if you were a home seller, you’d want the best possible offer right?
The one which had the best financing and had terms that were most supportive of your quest. The quest to sell your home.
The “excuses” are as follows:
- Property being updated – showings will be delayed
- Seller out of town – showings will be commencing in two weeks
- Repairs being completed – showings will be held in the future
- Home shown during open house this weekend – no showings until then
In most of these cases, the agent is wanting to wrangle their own buyer which will increase their commission on the sale.
Home seller injustice
However, that does not do justice to the home seller. The home seller will soon realize they may have been able to obtain a better offer, a stronger buyer, represented by their own agent where there agent did not have to perform in a dual agency arena.
This is the case most of the time where the home sellers are not realizing what is going on. We always inform our home sellers that we’d love to “double end” the transaction in the sale of their home. I also tell them it may not be the best way in which to serve their real estate needs at the level they should be served.
The Banks Learned the Hard way
When we were selling the assets owned by Citi Group, their foreclosures, we had people calling us to use us directly in the purchase of the foreclosures Citi was having us sell.
I’d say 90% or more of those calling had their own agent. Their own realtor who was working hard trying to get them what they wanted. However, those buyers were very willing to kick their agent to the curb and use us if it meant them getting the home.
I always responded the same way. If I represent you, there is no guarantee. It’s up to the bank and by law I have to submit all offers, not only those in which I represent the buyers, but all offers from other agents pertaining to their own buyers.
Banks not a fan…
Plus, something that they did not know, the bank is not necessarily fond of their hired agents representing the home buyers on their assets. They changed after time and no longer gave me any extra commission if I was also representing the buyer on their asset. They have been tricked in the past by clever agents who “round filed” other offers received so their own buyers could get the home for sale. So hence the changes to the removal of the dual agency commission.
Don’t worry – those agents who were greedy were found out. When an offer did not make it to the asset manager of the bank, which had been submitted, their agent was fired! They discovered this by law suits invoking discovery of all offers (email chains, Voice Messages and Text streams). The banks also had investigators call and speak with their listing agents wanting to submit offers etc., it worked at flushing out the criminals for sure!
Marketing and Negotiation are the Key
At the end of the day, advertising and marketing real estate is key in getting a home seller the right home buyer. There has to be work put into the vetting of buyer’s offers and buyers. In a multiple offer situation, which cannot happen when the home is being “held” and sold before it has a chance to be seen by the home buying public, counter offers need to be scribed and delivered.
Counter offers pertaining to the best seller scenarios. These things need to happen in real estate and should not be neglected because of greed.