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There is nothing incorrect in my statement and I did not say that agents can't or don't advise or look after their clients' interests.
It all boils down to the fact that an agent's job is to sell a home and they are paid to do so. Their product is a home. An advisor's (e.g. lawyer, accountant, tax advisor, etc) job is to give advice and they are paid to do so. Their product is advice/advisory services.
That's a fundamental difference that any professional advisor would recognize and salespeople need to be transparent and have truth in packaging. There is nothing wrong with reminding consumers that buyer's agents are paid with sales commission and therefore are salespeople, not independent advisors like lawyers, accountants, tax advisors, etc. The OP was seeing agents providing representation like a lawyer so it's only responsible and transparent to explain the fundamental difference in role between a salesperson and an independent advisor.
I understand there’s a difference between an attorney and salesperson but every profession has people that will try to abuse the client/consumer for their own financial gain.
I’ve seen attorneys pad bills and do unnecessary work to run up billable hours. It’s the same with contractors, auto mechanics, etc. There are some that will take advantage of a client to make some extra money. As consumers, we still have to watch out for ourselves. I don’t know enough about real estate to forgo a RE agent. However, I’m not just going to start signing documents without reading, understanding and knowing what I’m getting into by signing.
I understand there’s a difference between an attorney and salesperson but every profession has people that will try to abuse the client/consumer for their own financial gain.
I’ve seen attorneys pad bills and do unnecessary work to run up billable hours. It’s the same with contractors, auto mechanics, etc. There are some that will take advantage of a client to make some extra money. As consumers, we still have to watch out for ourselves. I don’t know enough about real estate to forgo a RE agent. However, I’m not just going to start signing documents without reading, understanding and knowing what I’m getting into by signing.
Mike,
When you sign with a buyer's agent (and you will legally have to do so to have fiduciary representation in NC), don't sign with anyone who requires dual agency up front. Reserve the right to make an informed decision at a later time.
And don't sign a Buyers Agency Agreement that does not offer you a unilateral, documented, right to terminate that agreement if you become uncomfortable or think you are not being served.
That would be fine also. But I still would not sign anything. It's not necessary and it serves the agent's interest, not yours. The fact that you are free to go elsewhere at any moment serves YOUR interest.
Also, some EBA agreements might even require you to pay a commission if you buy ANYTHING. Even a for-sale-by-owner.
Don't get locked in. You don't need to. Any agent that DEMANDS you lock in to their world is an agent I would avoid.
I know of several that require an agency to establish a client relationship. Better advice would be if the state or the buyer agent the OP wants to hire requires a written agency agreement simply ensure there is a cancellation policy in place.
An agency doesn't just serve the agents interest. With a contract in place outlining agent responsibilities the client has recourse if the agent violates them. SC has a very client friendly agency agreement, it's primary focus is to protect the client from unethical and/or poorly trained agents.
There is nothing incorrect in my statement and I did not say that agents can't or don't advise or look after their clients' interests.
It all boils down to the fact that an agent's job is to sell a home and they are paid to do so. Their product is a home. An advisor's (e.g. lawyer, accountant, tax advisor, etc) job is to give advice and they are paid to do so. Their product is advice/advisory services.
That's a fundamental difference that any professional advisor would recognize and salespeople need to be transparent and have truth in packaging. There is nothing wrong with reminding consumers that buyer's agents are paid with sales commission and therefore are salespeople, not independent advisors like lawyers, accountants, tax advisors, etc. The OP was seeing agents providing representation like a lawyer so it's only responsible and transparent to explain the fundamental difference in role between a salesperson and an independent advisor.
then you would agree that any advisor paid on an hourly basis is therefore incentivized to work as many hours as they can get the client to pay, whether the hours are necessary to solve the client's issue.
Quote:
It all boils down to the fact that an agent's job is to sell a home and they are paid to do so.
well, the Agent and the client sign an Agency Agreement that spells out what the agent's job and responsibilities are.
I understand most of what you said but you lost me at the $10k being enough for a major project. If I don’t have an agent, the seller would just keep the whole commission, right? I don’t get any of it.
While I understand that they’re going to want the sale, I think you can weed out the pushy ones from the good ones. Looking at reviews and getting recommendations, while not perfect, is a good place to start I would think.
When I started speaking to realtors I found some were telling me it’s no problem to buy long distance and said they had clients do it all the time. Others said to wait and rent first so I could get the lay of the land. The one I’m leaning toward told me it’s not a good idea to buy long distance. You may end up with a nice house but then you could get there and find that there was another neighborhood that suited you better.
Just an FYI the poster you quoted is here constantly pushing an anti-agent agenda but he does it in subtle ways at times. A good agent will promote your interest. The fact the commission is split has nothing to do with how a good agent will represent you. Yes, frequently if there is no buyer the listing agent keeps the entire commission. You should at least visit the area and get a tour of the different parts of town and some neighborhoods before making a decision. You may learn enough to buy something or you may decide to rent for 6 months to figure it out. That's your call.
There is nothing incorrect in my statement and I did not say that agents can't or don't advise or look after their clients' interests.
Oh, you didn't? Let's review what you wrote:
Quote:
Originally Posted by just_because
People who get paid with sales commission are sales people, not advisors. You can't be both.
I don't know how you could have written more clearly that a real estate agent can't be an advisor. But now you've contradicted yourself, so which is a reader to believe?
The method of payment is not the determining factor in whether someone is capable of giving advice. Lawyers often get paid a percentage, so are they not capable of giving advice under those circumstances? Yes, some lawyers may give bad advice just to increase their bill, but that can happen in any profession. Consumers always need to be wary--it's a jungle out there.
My role as a real estate agent is to represent the best interests of my clients and to gather and provide information to them so that they can make informed decisions. I don't view myself as a "salesperson" and I really feel that the worst real estate licensees are those who think of themselves only in that way. Our licensing structure hasn't evolved as quickly as I feel it should have. I wish that they would do away with the nomenclature of "salesperson". It sometimes can be a self-fulfilling prophesy.
Quote:
Originally Posted by just_because
1. Buyer's agents are not like an attorney protecting your interests.
The role can be very similar. Granted, an agent should not be giving legal advice and should advise a client to seek appropriate legal advice when warranted, but just having an attorney is not always the best way for one's interests to be protected. I've had occasion to educate a few family lawyers about particular aspects of real estate law, but at least they are usually quick to learn.
then you would agree that any advisor paid on an hourly basis is therefore incentivized to work as many hours as they can get the client to pay, whether the hours are necessary to solve the client's issue.
well, the Agent and the client sign an Agency Agreement that spells out what the agent's job and responsibilities are.
Happy to talk about an hourly model but that's not really relevant to this thread as the OP has not been offered this model, nor is he contemplating it. I'm not sure I follow the point you're trying to make. I'll answer your questions anyway...
Point 1...yes of course. No different than a supermarket wanting to charge the most it can for peaches or getting you to buy as many peaches as it can get you to buy. Clear and transparent. Customer buys what he wants and will go somewhere else if the price is deemed too high.
Agent says "I'll take your requirements and search all homes on MLS and narrow it down to the 5 that fit best and then we can review them. That will be 20 hours - 2 hour meeting, 17 hours of research, and 1 hour to present findings to you". Customer says, "no thanks, i'll do it myself. I have a computer"
Point 2
The buyer's agent agreement outlines the duties to the buyer while helping the seller's agent to sell the house. How buyer's agents and sellers agents work is best outlined in https://www.nar.realtor/nar-doj-sett...mls-what-is-it
Just in case anyone wants to say i'm lying. First 5 paragraphs make it pretty clear about 8 different ways.
By the way, I love how the URL in many of the pages on the NAR website say: nar-doj-settlement. That's really funny. This page just explains the MLS. Maybe the DOJ had to straighten this out as too many people were giving incorrect information or saying that it's lies that the buyer's agent works with the seller's agent to sell the house.
I understand there’s a difference between an attorney and salesperson but every profession has people that will try to abuse the client/consumer for their own financial gain.
I’ve seen attorneys pad bills and do unnecessary work to run up billable hours. It’s the same with contractors, auto mechanics, etc. There are some that will take advantage of a client to make some extra money. As consumers, we still have to watch out for ourselves. I don’t know enough about real estate to forgo a RE agent. However, I’m not just going to start signing documents without reading, understanding and knowing what I’m getting into by signing.
At least your head is on straight and you have the proper perspective about how things work. You should do fine. Best wishes on your move.
Point 2
The buyer's agent agreement outlines the duties to the buyer while helping the seller's agent to sell the house.
A faulty premise leads to a faulty conclusion.
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Best wishes on your move.
