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Old 06-21-2012, 07:14 PM
 
27 posts, read 56,213 times
Reputation: 13

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How can you trust a real estate agent?

We are working with agent now and looking for a home in East Meadow, L.I.. The RE agent was referred to us our Wells Fargo Mortgage Consultant. So far the real estate agent has been reactive not proactive in helping us find homes. Basically, if we find a home online - he'll setup to visit the home with the seller agent. Is this the role of a RE agent?

We recently saw a home in East Meadow which loved and ask the agent to submit an offer. We offered about 30k lower than the asking price and he basically ask us if we would like to raise our offer since there were about 4-5 offers already on the table.

But how can check if the agent really submitted the offer? In other words, how do we know if the agent did not submit the offer because of his own financial terms (not making enough commission on the sale or relationship with the seller listing agent)?

We're first time home buyers and just feel like the agent is too reactive and not proactive to researching homes that fit with our needs and budget.

Any recommendations?
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Old 06-21-2012, 07:17 PM
 
Location: Salem, OR
15,020 posts, read 37,013,181 times
Reputation: 15640
Well out here the seller signs offers so you know they were presented.

You need to rely on your gut. If your gut is telling you that the agent isn't right for you, listen to it and find someone else. You can interview buyer agents and you should interview three.
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Old 06-21-2012, 07:53 PM
 
Location: Louisville KY Metro area
4,825 posts, read 13,577,539 times
Reputation: 2145
If you can't trust your Realtor, you have a serious issue. No matter who is at fault, there is a communications breakdown.

While there is no perfect prescription for finding the perfect Realtor, I recommend a few actions.

#1. Interview at least 3 and maybe 5 to represent you. Study their resume' just as you would study the resume' of someone you are hiring. Which is exactly what you are doing.

#2. I cannot tell you the value of experience. Yes, I know, getting experience without opportunity is an age old issue, but you it's your money.

#3. Get references/referals. Go to a local beauty/barber shop and ask the clientele and staff for their recommendations. There is no better source of opinions... LOL

#4. I recommend that you consider Realtors with multiple designations such as CRS, CRB, GRI, ABR. While again not a perfect baromenter of integrity or competence, the designations do have a better than industry average for performance. The more held, the more likely you'll get greater performance.

Good luck! If I can help you in any other way, let me know.

btw: I hold CRB, CRS, CDPE, CIAS, SFR, & e-Pro.
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Old 06-22-2012, 12:01 PM
 
7 posts, read 15,642 times
Reputation: 19
If you are not happy that your agent isn't proactive enough, then I suggest you speak with him about it, so that you're both on the same page. If that doesn't work tell him you will be interviewing new agents. You mention that you offered $30K under asking price when there were 4-5 other offers already. I would ask, did you make your offer price in line comparable sales, or did you offer less because you want a deal even though the proprerty is priced to sell? If the former, you are on the right track -- don't overpay for something just because there are other offers. If the latter, then it's understandable that your agent is lukewarm toward you -- he may be just as frustrated with you as you are with him. By the way, when you do the math, it makes no sense to believe the agent is trying to get you to pay more so he can make more commission, because the "extra" commission is relatively meager in light of the total amount. I can understand when buyers think agents are trying to get them to pay more so our commission is higher, but really, it's usually not the case. We'd rather keep a good client than try to make another hundred bucks on a deal.
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Old 06-23-2012, 04:58 AM
 
Location: Hernando County, FL
8,488 posts, read 19,332,298 times
Reputation: 5397
You love the house, there are 4-5 other offers and you offered $30K below asking?

First off if there are truly 4-5 other offers and you went $30K below list then you really don't want the house. If there are that many offers then it sounds like it is priced very nice.

Secondly, why would the agent not submit your offer, that would be a sure way for him not to get paid anything.

Lastly, you stated you think your agent wants you to raise your offer to make more money, personally I think it is because he realizes your original offer is too low with 4-5 other offers on the table and he is trying to help you get the house but if we went with the agent trying to make more theory you need to look at if it is really worth it for an agent to play those games.

The median home price in East Meadow is over $400K but the most recent sales there are in the $350K range. Lets say the home is listed at $350K, the commission rate is around 5% and you offered $30K below list.
At $320K the buyers agent would be looking at $8000 total commission if the list agent is doing a 50/50 split. The buyers agent then has his split with his broker, I am not sure how it is in NY but lets say it is 50/50, the agent is then making $4000. Even if the agent had you raise your offer $30K to the $350K, if you use the same percentages the agent would then be looking at walking away with $4375.

I would say the vast majority of agents are not going to want to lose a $4000 commission because they pushed to make $375 more. More than likely the push was so that your offer was actually in a range to be able to get the home.
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Old 06-23-2012, 10:34 AM
 
3,398 posts, read 4,758,427 times
Reputation: 2414
Quote:
Originally Posted by tito210 View Post
How can you trust a real estate agent?

We are working with agent now and looking for a home in East Meadow, L.I.. The RE agent was referred to us our Wells Fargo Mortgage Consultant. So far the real estate agent has been reactive not proactive in helping us find homes. Basically, if we find a home online - he'll setup to visit the home with the seller agent. Is this the role of a RE agent?

We recently saw a home in East Meadow which loved and ask the agent to submit an offer. We offered about 30k lower than the asking price and he basically ask us if we would like to raise our offer since there were about 4-5 offers already on the table.

But how can check if the agent really submitted the offer? In other words, how do we know if the agent did not submit the offer because of his own financial terms (not making enough commission on the sale or relationship with the seller listing agent)?

We're first time home buyers and just feel like the agent is too reactive and not proactive to researching homes that fit with our needs and budget.

Any recommendations?
Is your agent sending you listings that fit the description of what you want? This is part of their job. If you are having to do all of your own searches I would say that you have a case there.

You can believe the offer was submitted. Trying to get a buyer to raise there offer to get a few dollars more commission is never worth it. You didn't hear back from the seller because your offer was way too low. I would ask you this however, did your agent provide you with comps to help you determine the value of this house before you made this offer? This is an important part of an agents job.
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Old 06-23-2012, 12:03 PM
 
Location: Lewistown, MT
5 posts, read 15,346 times
Reputation: 19
Most of the time a reactive agent is a busy agent. If they have a lot of clients and transactions going, they may just be behind in having time to search new properties. It's a sign that they just don't have as much time to be individualized, but they also have enough clients to have at least a good enough reputation to be getting work.

If you have signed a contract to employ the as your buyers agent, then you need to stick it out. You don't want to cause trouble and possibly face litigation for breaking a contract by going with someone else.

I would recommend making an appointment to talk with your agent about your concerns. Ask if the seller rejected the offer outright. Perhaps the agent just forgot to contact you since there was no more action to be done on your part? (benefit of the doubt). Most likely they can ease your fears and understand a little better what you are needing.

Good luck on your first home purchase! It's a big deal, but your agent is there to protect you and help you.
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Old 06-23-2012, 09:10 PM
 
Location: Raleigh NC
23,280 posts, read 12,805,088 times
Reputation: 13709
with the power of the internet, it is most likely that the Buyer themselves will find the house online faster than the Realtor. Our tasks for you primarily BEGIN at the time you find the house you want to buy, and we work hard to make THAT house work.

Finding the house and gaining access are what any freshly-licensed agent can do. Perhaps talk you out of a bad purcahse because you've put your blinders on? Help you become better educated about desirable neighborhoods and home features along the way? Sure.

But our job begins when it's time to create an ACCEPTABLE offer to get you the house you WANT, and they continue through the ink drying at the closing table.
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Old 06-24-2012, 01:40 AM
 
Location: Long Island
9,658 posts, read 21,211,325 times
Reputation: 5447
Quote:
Originally Posted by tito210 View Post
How can you trust a real estate agent?

We are working with agent now and looking for a home in East Meadow, L.I.. The RE agent was referred to us our Wells Fargo Mortgage Consultant. So far the real estate agent has been reactive not proactive in helping us find homes. Basically, if we find a home online - he'll setup to visit the home with the seller agent. Is this the role of a RE agent?

We recently saw a home in East Meadow which loved and ask the agent to submit an offer. We offered about 30k lower than the asking price and he basically ask us if we would like to raise our offer since there were about 4-5 offers already on the table.

But how can check if the agent really submitted the offer? In other words, how do we know if the agent did not submit the offer because of his own financial terms (not making enough commission on the sale or relationship with the seller listing agent)?

We're first time home buyers and just feel like the agent is too reactive and not proactive to researching homes that fit with our needs and budget.

Any recommendations?

Some questions:

First, did you hire your agent as a "Buyer Agent"? If not, did he offer that option? (For other agents on this forum, on Long Island, Buyer Agency is still somewhat in its infancy ). A Buyer Agent represents the buyer and works for the buyer; all other agents work for the seller, therefore in the seller's best interests.

Next, did you ask your agent if he presented your offer to the seller directly?

If he did not, ask him if he submitted your offer with an Offer Acknowledgment form (a standard MLS/Long Island Board of Realtors form). On this form, the seller acknowledges having received your offer. It's not an acceptance or rejection - merely states that the seller(s) have received the offer.
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Old 06-24-2012, 10:11 AM
 
33 posts, read 40,424 times
Reputation: 20
depend on your attoney, instead of your agency, this is my experience.
any people, if they have interests involved, will be hard to trust.
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