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I will soon be in the market for a home. How do I ensure that the agent taking me to see various houses is indeed looking out for my best interest as a buyer?
I'd like to think the agent has a fiduciary duty to their client, but I am aware of some pretty unethical real estate shenanigans that make me question if realtors are held to any type of ethics expectations which bring consequences for violations. Are realtors of the same ilk as a used car salesman?
I can certainly see a realtor having an interest in steering me to a more expensive home than another just so they net a bigger commission.
I will soon be in the market for a home. How do I ensure that the agent taking me to see various houses is indeed looking out for my best interest as a buyer?
I'd like to think the agent has a fiduciary duty to their client, but I am aware of some pretty unethical real estate shenanigans that make me question if realtors are held to any type of ethics expectations which bring consequences for violations. Are realtors of the same ilk as a used car salesman?
I can certainly see a realtor having an interest in steering me to a more expensive home than another just so they net a bigger commission.
Sign a buyers agency agreement that ties the agent to you as a fiduciary.
Never sign a buyers agency agreement unless the parties have the option to unilaterally terminate the contract.
If your Spidey Sense tells you the agent is not working toward your best interests, then you terminate.
If your price range is $350,000--$500,000 and you have given the agent a Wants & Needs list of 10 items, would you rather the agent show you $480,000 houses with all ten items, or $375,000 houses with 5 of 10 items?
Focus on how the houses fit your Wants & Needs.
Have honest and thorough conversations with the agent. Give them information to work with, trust them with what is most important to you. The more we know about you, the better, always.
Look at everything in your price range online. If your agent isn't sending you some listings that you might have liked, ask why. Chances are there are reasons, ie... something that makes it not fit your criteria. If you still would like to see it, let them know and correct their search so you get the see them. If you'd like to see fixers and they're sending only new builds, speak up! It could be they're trying to show you more expensive listings, but it very well could be the lower price homes won't qualify for your financing, or don't have what you said you want. Or there could be a misunderstanding of your wants and needs.
You should and will decide what you want to see. The agent should advise you on what they see about each place and what they know about what you are looking for, and hopefully you can take those observations under consideration and judge their honesty and fairness.
Your agent should freely give good information and advice, but ultimately, the decision about what to see and what to buy will be yours.
I think the issues most likely to make you doubt your agent may not be on which house to look at or offer on, but on the other variables that will crop up like how much the offer should be for, whether it needs to be bid up, or whether you can offer less... Whether you can ask for repairs or concessions, or whether the seller will be unlikely to agree to those. Again, be open and honest with the agent, and ask them to be the same with you. There's hardly ever hard and unbending rules on these factors, you just have to ask and trust your own spidey sense as you go, and if you doubt or don't understand something, ask for explanation. If you don't like the answers or don't trust the advice, find another agent.
Having your repeat business and all your Referrals for a lifetime would be way more important to me than making a few $100 or $1000's.
Find an agent like that.
I agree. I’m not sure all of the real estate agents out there do though. Finding that agent may be more luck than trying to exercise diligence. I want someone who will be an advocate for me as a buyer and not someone looking to make an easy and fast commission through a quick sale.
On a related note, I am currently interviewing financial advisors as I prepare for my retirement. Of the five I have interviewed, all of them seem equally qualified, are telling me pretty much the same things, and seem like genuinely nice people. I feel bad that I’m going to have to decline four of them and choose just one.
On a related note, I am currently interviewing financial advisors as I prepare for my retirement. Of the five I have interviewed, all of them seem equally qualified, are telling me pretty much the same things, and seem like genuinely nice people. I feel bad that I’m going to have to decline four of them and choose just one.
Ask all buyers agents if they charge a transaction fee. You can immediately eliminate any that do.
Tip about financial advisors: Have them explain in detail how they get paid and typical expenses of what they'll be recommending. There's a good chance several of them will be too expensive to allow you to do as well as you need to. Know what an advisor is going to cost you in total before you commit. Some of the well-known names will create a portfolio so complicated that you will have an expensive ordeal unwinding it should you leave them.
Ask all buyers agents if they charge a transaction fee. You can immediately eliminate any that do.
Tip about financial advisors: Have them explain in detail how they get paid and typical expenses of what they'll be recommending. There's a good chance several of them will be too expensive to allow you to do as well as you need to. Know what an advisor is going to cost you in total before you commit. Some of the well-known names will create a portfolio so complicated that you will have an expensive ordeal unwinding it should you leave them.
Great advice. Sounds like it comes from firsthand knowledge. Thank you.
I agree. I’m not sure all of the real estate agents out there do though. Finding that agent may be more luck than trying to exercise diligence. I want someone who will be an advocate for me as a buyer and not someone looking to make an easy and fast commission through a quick sale.
On a related note, I am currently interviewing financial advisors as I prepare for my retirement. Of the five I have interviewed, all of them seem equally qualified, are telling me pretty much the same things, and seem like genuinely nice people. I feel bad that I’m going to have to decline four of them and choose just one.
So are used car salesmen.
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