Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Real Estate agents know what they are getting into. I've been screwed with some of these agents and feel no remorse for them at all. I don't find their job extremely difficult. The industry should change, buyers should just eliminate the agent and buy directly from the seller.
It was unethical for the agent to have the OP sign a 1 year agreement to represent them as their buyers agent. If they were signing a seller's agreement then my opinion & response might be slightly different. It really bothers me that the agent didn't explain what the client was signing (which happens often) especially since the couple were first time buyers.
If an agent doesn't want to truck around clients then they should be in a different line of work. If they are good agents they will make their money back and then some. What agents get paid is no small amount of money.
Had the agent actually did the work and found the place for this couple then there would be no problem. But he/she didn't and shouldn't be paid for doing NOTHING!
Upon reading all the post here about this subject it is amazing to me how people are. First, always read thoroughly what you are signing and if you don't understand it then ask questions before hand. For the advice of "going after the broker" or "filing a complaint" - this is bad advice if anything just bad moral advice. If you signed a contract with someone, then you honor it. If BOTH or either parties did not hold up to their obligations then there is the possibility to end up in court/mediation. Most likely - the real estate person will not want to go through the expense trying to obtain the commission - for one she/he was not the procure of the sale. However, understand that real estate professionals have this agreement because they are working for you up front for free. I think that there needs to be a revolution in the business to start charging people up front for services rendered.
Real Estate professionals are not in the business for free services to cart people around all day, give advice, and not be get paid. The contract is to help this from not happening as much and get buyers to understand that they are using services that need to be paid for one way or another. If it were someone seeking legal advice - you bet your bottom dollar that every minute taken up with that attorney is going to be billed to you and you will pay. Why should obtaining real estate advice and guidance be treated any differently?
Of course people should not sign what they don't understand... there are also many court cases of contracts being voided because the contract is contrary to public policy... I guess that is why we have courts
Maybe it is different where you are... I don't know any agents that cart people around... that stopped that here years ago. Agents will make an appointment to meet clients at a property, but the days of driving someone around all day by a successful professional agent just don't happen... the agents time is too valuable for that.
There are many avenues for free legal advice... even private firms often provide a no cost consultation.
Realtors are bound by a Code of Ethics... is it ethical to sign prospective first time home buyers to a year contract and then not contact them for months?
In all fairness, I'm still not clear on the terms of the contract and obligations of each party... let alone if the obligations have been fulfilled.
Had the agent actually did the work and found the place for this couple then there would be no problem. But he/she didn't and shouldn't be paid for doing NOTHING!
I agree! This agent sat on his/her tail for three months doing nothing, and didn't even have anything to do with the buyer finding a house.
Quote:
Originally Posted by Ultrarunner
Maybe it is different where you are... I don't know any agents that cart people around... that stopped that here years ago. Agents will make an appointment to meet clients at a property, but the days of driving someone around all day by a successful professional agent just don't happen... the agents time is too valuable for that.
I didn't know they didn't drive you around anymore. But since they don't, maybe they don't deserve as high a fee. That's less services, right? Shouldn't less services cost less money?
I didn't know they didn't drive you around anymore. But since they don't, maybe they don't deserve as high a fee. That's less services, right? Shouldn't less services cost less money?
Commissions are negotiable.
In general, The higher price the property the lower the commission you can negotiate. There are exceptions depending on marketability, pricing...
I haven't paid 6% in about 10 years. Typically I've been paying 4.5% to 5% on lower priced properties and 4% on higher priced. But the agents I work with also know that when I put something on the market I am not jerking them around, I intend to sell it at market price.
My last agent wanted 8% to sell my home. I brought that down to 2.5 for the buyer's agent and 2 % for my agent. But seller's agent agreements is not what we are talking about here.
I agree! This agent sat on his/her tail for three months doing nothing, and didn't even have anything to do with the buyer finding a house.
I didn't know they didn't drive you around anymore. But since they don't, maybe they don't deserve as high a fee. That's less services, right? Shouldn't less services cost less money?
I've always found the value of a good agent to be their ability to let me know when something I interested in comes on the Market... many times before it hits the MLS and also when a listing is or about to expire or the Seller is very motivated.
Quite a few of the properties I've bought through the years have included Seller Financing...often these properties had problems that would have needed to be addressed before a lender would lend.
Twice, my best agent assured the Sellers that she had sold property to me for many years and that I they would not have to worry about carrying a deed of trust... it made a difference and so far no one has ever regretted it...
This would not have been possible had I just walked in off the street on a For Sale by Owner... although, I've done a few of these too.
Also, the best agents have built up a wealth of contacts with a track record... not only do these contacts not want to disappoint me... they especially don't want to disappoint the agent and loose future business. A good agent can expedite things a keep a sale on track...
The job of an Agent is to get the property sold in a manner that everyone understands the process and minimize surprises... I learned a lot from her and sadly she passed away a few years ago...
Anyone can chauffeur people around... I just don't have that kind of time... speaking as a buyer specializing in AS-IS property.
I've never felt I've overpaid because of using an agent... bottom line is a property is only worth so much to me and that's it. For Sale by Owner can also be very difficult... they focus on saving the cost of commission and not pricing the property lower because no Agent is involved.
Ultrarunner, sounds like you are one of the few that actually benefited from having an agent. The agents that are part-timers and started at the market's boom are just HORRIBLE!!!! What it is about for them is making money and nothing else matters not even their clients no matter how nice they seem. The agents that say they specialize in 1st time buyers, PLEASE RUN FAST FROM THEM, they know they can doop you so they do. From my experiences there wasn't anything they did that I couldn't do. I was the one that found my last houses each time and not the agent who got the commission. They all gave the advice to over bid and put down a ridiculous amount of money. When I was selling my last home it was like pulling teeth to get the agents to do anything. I had to use more than one agent to sell my last home. The first agent wanted a huge commission but wanted me to show the house. They never even picked up their phone and when they did they told a prospective buyer that I would take less money then I asked for and that they should offer xyz. That is unethical insight. Agents in my opinion are OVERRATED.
Ultrarunner, sounds like you are one of the few that actually benefited from having an agent. The agents that are part-timers and started at the market's boom are just HORRIBLE!!!! What it is about for them is making money and nothing else matters not even their clients no matter how nice they seem. The agents that say they specialize in 1st time buyers, PLEASE RUN FAST FROM THEM, they know they can doop you so they do. From my experiences there wasn't anything they did that I couldn't do. I was the one that found my last houses each time and not the agent who got the commission. They all gave the advice to over bid and put down a ridiculous amount of money. When I was selling my last home it was like pulling teeth to get the agents to do anything. I had to use more than one agent to sell my last home. The first agent wanted a huge commission but wanted me to show the house. They never even picked up their phone and when they did they told a prospective buyer that I would take less money then I asked for and that they should offer xyz. That is unethical insight. Agents in my opinion are OVERRATED.
I know we go round and round at times... I have met a lot of agents in the business that I would run from too Most don't stay in the business long.
My best results are with those that are full time, same office, same neighborhoods for many years and always accessible to me... I think at least 10 years full time is a good start. I also check their license history.
A good agent brings value to the table and many of the best agents have built up a client base strictly from referrals...
I met my favorite agent from an ad in Homes and Lands magazine, gave her a call and she answered all of my questions... She was definitely the neighborhood expert, having sold the area for 20 years... she even helped by refering tenants to me for a triplex she sold me... It never went MLS... We also did some probates...
A few of my rules...
Never sign a long listing agreement... a confident agent should be upfront and realistic and willing to back it up in a reasonable time... I will never understand why people sign 6 month, 9 month or year listings... 90 days should be plenty.
Always prepare you're own offers for presentation... that way there's no surprises.
Be flexible on small things and firm on what's important to you...
Get promises in writing and hold people to them... if they fail to perform, at least you have established a paper trail...
No one needs enemies... don't go out of your way to make them... kind of a "What goes around, comes around" philosophy...
Don't get overly emotional... sometimes it's not meant to be and there are always another opportunity out there and they often are when you least expect it...
I've had people call me and ask me to buy their homes based solely from seeing me working on my Rentals and getting to know me in the neighborhood... no agents involved...
The Real Estate Test isn't that hard... I took it once just to prove it... arrived late due to an accident on the Bay Bridge and still passed it... never sent in for the license because that would make me a professional and I'd rather have them working for me
A great agent is one who has customers that are interested in your property before you even sign a sales contract. There are a few like that. It is more common in commercial real estate but there are some in residential who have that.
An important quality in an agent is that he does not mess up a sale due to his ignorance of laws/regulations or his laziness. Too many agents like that.
There are many good agents out there and it does take time to find them; unfortunately the bad agents outnumber them and give them a bad name.
IMHO and no swipes against CA but the better agents are in other parts of the country. They are the throw backs that you rarely find in the Real Estate industry that are pratically extent in CA. If you try to buy in another state they try their best to find out who you are as a client and what would suit you best. Agents here just say buy and if you want to buy in such and such area no problem as long as you have the money or they will try to convince you to buy a crap place just to make the sell just out of pure greed. If there is a deal they aren't jumping up and down to let you know about it.
I once had this agent in CA who after showing me 5 horrible homes said either I buy or they need to move on as time is money. Yeah, my money. The agent should have showed me the moon if I wanted to see it if she wanted my business. When I have lived in other parts of the country agents steered me clear of trouble areas and homes and actually asked me to fill out wish lists and came close to fullfilling want I was looking for. Here that is too much work for the lazy but typical agent.
The difference with other agents outside of this state is that it is their name and reputation that is most important (all the things you guys mention should be found in a good agent), it is something they are really patient about doing, and I found that often times it is extra money to be earned for the stay at home mom so they want to do their best. Here they are just looking to get paid at all cost (sure there might be a good agent in a far off remote part of CA).
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Most don't stay in the business long.
