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By the time a contractor meets with you to discuss what your thinking about, reviews your plans, makes out a materials list, checks costs, figures out labor and permit costs... he/she has invested a fair amount of time that they are not compensated for when you selected another contractor for the job.
Using your reasoning, it would be fairer to interview the contractors at their office to see if they knew their way around construction and then hire them on the spot. Later you could figure out the money.
This makes no sense. It is a cost of doing business. Contractors will charge a higher hourly rate to compensate for this. All business, agents included, have losses such as this that get added into fees. The contractor coming out, measuring my deck, giving me quotes is equivalent to me giving a buyer 1/2 day of my time with no requirement for payment. Contractors don't expect to get paid for quotes. I don't expect to get paid for that 1/2 day.
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Originally Posted by GotHereQuickAsICould
What I've read is that this is to protect them from unscrupulous agents. Perhaps so.
I don't think that is the case. It is to clarify services and expectations. There are fiduciary duties at play with real estate agents. I think it makes no sense to have someone have legal fiduciary duties to a client and then not spell that relationship out in an agreement.
Quote:
Originally Posted by GotHereQuickAsICould
So before I sign a buyer's contract, the real estate agent is working in a sub-agency capacity with the listing agent and represents the seller, correct? Then this relationship switches with the signing of the buyer's contract.
Oregon doesn't have subagency. I think only a few east coast states still have that.
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Originally Posted by GotHereQuickAsICould
When agents only show us homes their agency has listed, when they decline to show us homes in neighborhoods that we've expressed interest in, when they decline to contact FSBO sellers
These would be addressed in a buyer agency agreement. Wouldn't it be nice for consumers to see in writing what an agent is agreeing to do for them so they can decide if they want to work with that agent or not? Think of all the time buyers could save if they asked for agents business practices upfront. Some agents I know won't work with FSBO's. I think a consumer should know that before even stepping foot out the door, don't you? Do you know how much easier it would be to file a complaint against an agent for breech of contract when you actually have a contract?
At my buyer consultation, before we even look at anything, we go over my business practices. That way if they don't like them only an hour of time has been given by both parties.
This makes no sense. It is a cost of doing business. Contractors will charge a higher hourly rate to compensate for this. All business, agents included, have losses such as this that get added into fees. The contractor coming out, measuring my deck, giving me quotes is equivalent to me giving a buyer 1/2 day of my time with no requirement for payment. Contractors don't expect to get paid for quotes. I don't expect to get paid for that 1/2 day.
I agree that spending time showing buyer's homes is a cost of doing business. Just like making bids is a cost of business prior to the actual construction. The time it takes to make bids is rolled into the cost of projects.
The difference is that the buyer's agreement locks people into using one agent showing homes before they get to the actual business of buying. The time involved is greater than with a contractor, but the potential payoff at the end is much higher as well.
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Originally Posted by Silverfall
These would be addressed in a buyer agency agreement. Wouldn't it be nice for consumers to see in writing what an agent is agreeing to do for them so they can decide if they want to work with that agent or not? Think of all the time buyers could save if they asked for agents business practices upfront. Some agents I know won't work with FSBO's. I think a consumer should know that before even stepping foot out the door, don't you? Do you know how much easier it would be to file a complaint against an agent for breech of contract when you actually have a contract?
At my buyer consultation, before we even look at anything, we go over my business practices. That way if they don't like them only an hour of time has been given by both parties.
I think that's great to go over business practices up front. If you don't do FSBO negotiations. Say that upfront. If you don't show homes in certain neighborhoods, homes listed by certain agencies, home below a certain price... spell it out.
Just as buyers spell out what they want, how much they are pre-qualified for, etc.
If you will only work with buyer's who sign buyer's contracts, spell that out right at the beginning.
All of this is fine by me. You can even say that you charge $50/hour to show homes and that will be deducted from the commission at the end if I purchase a home from you.
It's all good.
I can see where if an agent was not working in my best interests, I could sue over not fulfilling contractual obligations. However, like most buyers I suspect, I am not going to sue for breech of contract. If an agent turns out to be a toad, I will be stuck trying to get out of contract during a period when I'm usually pressed for time anyway.
As I said, I can see how this benefits real estate agents.
And I can see how those buyers who are likely to sue over breech of contract would see that as a way to assure them that they are not taken advantage of by unscrupulous agents.
However, for the rest of us who are just looking for help in finding a home that it is a good fit for us, the only advantage I can see is if the agent agreed that by signing the contract, we would have their undivided attention or something close to it.
I don't even like signing exclusive listings to sell our home. We've had several experiences with agents who listed our home and then not done a thing to sell it but wait.
We've also had an agent who helped us price our home fairly, helped us with a list of contractors, window washers, etc. to get it top condition. Provided a consultation with a stager. Arranged for professional photographs. Held several open houses. Called fellow realtors. Listed it on the real estate page in the newspaper several times. Called us after every showing with feedback.
You think I'm wandering away from that second agent?
You think I don't regret signing with the first type?
Last edited by GotHereQuickAsICould; 09-23-2014 at 11:06 AM..
Don't mean to hijack a thread but I am in a similar quandary as a seller. I've seen two agents, one who is very familiar with the area and lives in my neighborhood, and another who is a referral from my trusted painter. The referral seems to specialize in other suburbs and areas except mine (most of his brokerage's listings are in these certain areas), however, on my initial meeting with him, he seemed very aware of my area and its trends. My neighborhood agent appears to be either working solo or maybe with one or two others. He seems to have a decent track record in my hood, there was a house that dropped him but the owners of that house wanted him to sell a shiny turd basically. He is nice/amenable and didn't promise me the world. He seemed very professional. He has no online reviews since he's so small. The referred agent on the other hand owns a realty company that employs several agents. At our first meeting, he came with his assistant and everything seemed very professional. he, too, was nice and a straight shooter. His CMA was lower than the first guy's, though. At least from online, it seems like people are happy with his services.
I'm having a hard time deciding between the two. I've never really had to interview realtors. I had a realtor for my first home, who I felt was good, but honestly the home could sell itself. It was in a great location. The second home purchase was new construction and we didn't use a realtor (mistake). I don't want to meet with a third since it will make the decision harder. My husband's instinct says to go with the second guy for some reason. As for me, I'm torn because I like the savviness of the second guy and his knowledge, but at the same the neighborhood guy actually lives in our neighborhood and specializes in the area.
I know not to decide based on things like which agent promises you a higher sales price, but this second guy is pretty resolute as to how much the house can fetch whereas the other guy quoted 5-10k higher. I figure he would know, since he lives in the neighborhood right?
Don't mean to hijack a thread but I am in a similar quandary as a seller. I've seen two agents, one who is very familiar with the area and lives in my neighborhood, and another who is a referral from my trusted painter. The referral seems to specialize in other suburbs and areas except mine (most of his brokerage's listings are in these certain areas), however, on my initial meeting with him, he seemed very aware of my area and its trends. My neighborhood agent appears to be either working solo or maybe with one or two others. He seems to have a decent track record in my hood, there was a house that dropped him but the owners of that house wanted him to sell a shiny turd basically. He is nice/amenable and didn't promise me the world. He seemed very professional. He has no online reviews since he's so small. The referred agent on the other hand owns a realty company that employs several agents. At our first meeting, he came with his assistant and everything seemed very professional. he, too, was nice and a straight shooter. His CMA was lower than the first guy's, though. At least from online, it seems like people are happy with his services.
I'm having a hard time deciding between the two. I've never really had to interview realtors. I had a realtor for my first home, who I felt was good, but honestly the home could sell itself. It was in a great location. The second home purchase was new construction and we didn't use a realtor (mistake). I don't want to meet with a third since it will make the decision harder. My husband's instinct says to go with the second guy for some reason. As for me, I'm torn because I like the savviness of the second guy and his knowledge, but at the same the neighborhood guy actually lives in our neighborhood and specializes in the area.
I know not to decide based on things like which agent promises you a higher sales price, but this second guy is pretty resolute as to how much the house can fetch whereas the other guy quoted 5-10k higher. I figure he would know, since he lives in the neighborhood right?
Ugh. Need to make my mind up soon.
You may want to ask for references. It is easier these days as folks keep their cell phone numbers when the move. I would definitely ask to speak to some of their clients who have sold their homes as well as some whose homes are currently on the market.
I would not rely on online reviews too much. Sometimes these are put up by friends and relatives. Other time they are folks that post negative reviews about everyone. It's really a catch as catch can situation.
Some agents overprice homes to get the listing. Others underprice for a quick sale. Or so I've heard.
You may also want to ask each what their marketing plan is. Look at some of their current MLS listings. Are the photos decent?
By the way, I have relied on references to find buyer's agents as well. Generally, we are moving to an area for a job, so I ask my employer and future coworkers who they recommend. Hospitals sometimes have agents that they rely on to help their new staff get settled in.
The difference is that the buyer's agreement locks people into using one agent showing homes before they get to the actual business of buying.
Looking at homes is part of the actual business of buying. Part of that process, especially for first timers is getting educated about homes. I always tell my first timers they should look at 10-15 homes before they considering writing an offer. They have no house knowledge and need to spend time learning about houses. That is part of the actual business of buying. How could you possibly write an informed offer on a house when you don't understand houses?
Quote:
Originally Posted by GotHereQuickAsICould
Just as buyers spell out what they want, how much they are pre-qualified for, etc.
Yes, buyer agents ask consumers for their criteria for buying. We want proof with preapproval letters and such. It seems only fair that a buyer gets their criteria for an agent in writing as well.
It's all good.
Quote:
Originally Posted by GotHereQuickAsICould
I don't even like signing exclusive listings to sell our home. We've had several experiences with agents who listed our home and then not done a thing to sell it but wait.
This is why consumers can protect themselves by insisting that services that will be provided are part of the signed contract. If they don't do them it is a breech allowing the seller to terminate. I don't do public open houses except for rare properties. Consumers know upfront that is not a service included. There is no argument 30 days into the transaction about when the open house is because we are both clear one isn't happening. Contracts should be about clarification.
Quote:
Originally Posted by GotHereQuickAsICould
I also had an agent who helped us price our home fairly, helped us with a list of contractors, window washers, etc. to get it top condition. Provided a consultation with a stager. Arranged for professional photographs. Held several open houses. Called fellow realtors. Listed it on the real estate page in the newspaper several times. Called us after every showing with feedback.
You think I'm wandering away from that second agent?
You think I don't regret signing with the first type?
You didn't sign a good contract with the first one that allowed you to terminate when they failed to do what they said they would. Consumers need to advocate for themselves. Agents that care about what they do will have no issue attaching an addendum stating what services are included. They will do them whether they are in the contract or not. It helps to weed out a mediocre agent though, or allows the seller to get out of that relationship faster.
Don't you think it is weird that most states require listing agreements to be in writing, but not buyer agent agreements? I think it demeans the importance of buyer agents. It might take 20 years, but states will require buyer agents have written agreements in the future.
You may want to ask for references. It is easier these days as folks keep their cell phone numbers when the move. I would definitely ask to speak to some of their clients who have sold their homes as well as some whose homes are currently on the market.
I would not rely on online reviews too much. Sometimes these are put up by friends and relatives. Other time they are folks that post negative reviews about everyone. It's really a catch as catch can situation.
Some agents overprice homes to get the listing. Others underprice for a quick sale. Or so I've heard.
You may also want to ask each what their marketing plan is. Look at some of their current MLS listings. Are the photos decent?
What other services do they offer?
Agree.
Look at some of their online listings. Photos, clean and decluttered, staged? Are all the photos in their portfolio of professional quality, even inexpensive ones?
Now take a few addresses and google them. Any online floor plans, videos, etc. Where are they placing their listings.
Read the descriptions. Does one agent take the time to write decent copy?
You might find that one has better marketing. Evaluate their current online marketing.
Ask to see copies of print materials. Open house brochures? Flyers? Permaflyers? Make them show you what they will do for you.
Look at Zillow Zestimates. Does the agent take the time to counter a low zestimate with a comment?
Don't be afraid to ask for references. You've got two potential agents with pros and cons and their clients might say something that makes you pick one over the other.
Look at some of their online listings. Photos, clean and decluttered, staged? Are all the photos in their portfolio of professional quality, even inexpensive ones?
Now take a few addresses and google them. Any online floor plans, videos, etc. Where are they placing their listings.
Read the descriptions. Does one agent take the time to write decent copy?
You might find that one has better marketing. Evaluate their current online marketing.
Ask to see copies of print materials. Open house brochures? Flyers? Permaflyers? Make them show you what they will do for you.
Look at Zillow Zestimates. Does the agent take the time to counter a low zestimate with a comment?
Don't be afraid to ask for references. You've got two potential agents with pros and cons and their clients might say something that makes you pick one over the other.
^^This^^
And great advice to get an addendum on your contract that that spells out exactly what the marketing plan will include -- flyers...
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