Buyer Beware? (recommendation, appraisal, agent, commission)

[tiggywink]

Spin-off from thread where house-hunter stated:

BUT, be careful... realtors know whos out there working in the buisness and they will lurk and slither. sorry its true. as a buyer your best bet is to work with a buyers broker but even then at the end of the day trust no one mt your personal lawyer you have used before, your accountant or a personal financial advisor. otherwise buyer beware!

and

I've said this many times before... if you are a buyer than trust no one. not a lender, a realtor, or what the seller has to say. you want advice go to your personal accountant or hire a personal financial advisor. the aformentioned have something to gain (commission). buyer beware.

These statements are making me feel so nervous ! I understand the part about the commission to gain by the agent, but I thought that the buyer's agent has to by law represent you honestly and fairly. Are there things to look out for? To be wary of? Hints that the agent is unethical or not fully representing the buyer's best interests?

A little background--I am an American living in London UK where I have bought 2 properties. It is common knowledge that estate agents in the UK are "slime" and not to be trusted--they've done several expose type documentaries with hidden cameras etc. showing how unethical even top estate agencies are...then again here in the UK there are no big tests to take, anyone can show up and be an agent. I don't know if this is different in any way to the US.

We are moving and will have an agent most probably assigned to us if not approved by our relocation agent, the relo also pays the fees (but will take some of the buyer's agent's commission) This makes me wonder if it wouldn't be tempting for an unethical agent to try to recoup some of his/her losses (due to havin got share the commission in the first place). How would we know? Would the relocation agency serve as the "trusted advisor" working in our best interests?

We do care about this issue not only because of the importance of getting the best service but also because there is a limit to what the relocation pays for, anything above the limit we pay for out of pocket. And there's not too much in that pocket.

house-hunter--please elaborate!

Thanks in advance for any insight, tips, experiences...anything. I'm officially scared now !

[2bindenver]

House Hunter is being inflammatory. Certainly not all licensees are co-conspirators.

Interview several Realtors, and hire one as your buyers agent.

Look for ABR and or CRS's designations after the Realtors name that shows dedication and education to further the clients interests. If email communication is important, look for an ePRO (certified internet professional) If leadership and community service is important look for a WCR member...Are there undesignated caring professionals - sure. But the quickest way to find the professionals with the expertise you are looking for is to look for Realtor designations.

Designations, education, experience, testimonials all can help you find a "dedicated to your happiness" type of Realtor.

I give Realtor referrals anywhere - no cost or obligation.

[Apple Annie]

Tiggy, that is really too bad where house-hunter is concerned. He obviously has some sort of agenda, his anger about the real estate business in general is misplaced. He says he is a builder of homes? and that he has expertise with appraisals. He has a general disdain of Realtors. If he has had a bad experience with one or two agents, there are two sides to every story remember. Yet he wants to paint the entire industry with a broad brush.

I am very defensive about the amount of honest service that we Realtors give to our clients. Yes, there will be bad apples in every basket; but the odds of running across one is not the norm; and they don't remain in the business for long.

As I mentioned to you in another thread, your relocation company hand picks the Realtors that they work with. They have very high standards, and the Realtor must meet several levels of criteria to work with corporate relocation companies; on both sides. Whether as a buyer's agent, or a listing agent; that company has put their employee in our hands. Personal referrals are the backbone of any Realtor's business and if you don't perform, you're out, simple as that. It is a feather in your cap if you have a good relationship with these companies.

Do not be afraid of your Realtor; put your trust in the person that they have been qualified to the maximum by your company. It would take me a week to convey success stories of good Realtors and the bonds of friendship we have made relocating people who are literally at our mercy in making the right decision in finding that perfect home for their family. Not only success stories of the business, but civic minded, hard working, charitable and philanthopic professional Realtors are everywhere.

The naysayers are insulting the intelligence of people who know better; and trying to discourage and frighten vulnerable people such as yourself who need the expertise and trust that your Realtor is going to provide to you.

[MoMark]

House-hunter is also claiming that the U.S. economy is an the verge of collapse and that it's all planned by the Feds so that we become financially in-debt slaves.
I wouldn't pay him one penny for advice.
Your realtor is bound by laws and they're pretty stringent. Not only that, it's not in their interest to mislead you, they want you to be happy and for a sale to go through.
The only thing I'd recommend is that you have a home inspection done and use an inspector YOU pick, not recommended by your realtor. I used the Yellow Pages to find mine and then called for references. It worked out so well I used him twice.
Plus, your financing is based on what your resources are, not what your realtor says. If the realtor is someone you like and can get along with, then great! I prefer not using the realtor representing a specific house I may want. I like mine independent and not tied by interests to any property I want to see.
My realtor selling my house in Las Vegas protected me for instance. I had accepted a bid by Polish investors under asking price but hadn't signed anything. I got a full price offer hours later with no strings and a qualified buyer. I took the higher offer and signed it. The polish buyer's agent threw a fit and said we couldn't do it, blah blah. My realtor looked him in the face and said...can you produce a signed written document? He couldn't obviously. She was tough as nails! I liked that!
I am not a realtor nor have I ever been, but I've bought houses before including the one I'm in writing this from. I've only had one bad experience and that was in California when my first time buying included a realtor doing double representation...she represented the seller of the house I wanted and me who wanted the house. She tried to get me to back out and pulled some tricks because I wasn't an easy buyer. I shot her down with a legal writ and she started playing nice but quick.
You should have no problems.

[chaz longue]

tiggywink -

I'm a Realtor, CBR, with almost 2 decades of experience, most of it representing buyers as CLIENTS.

First, let me assure you that UK practices and American practices are quite different. I have a cousin who was an Estate Agent outside of London for many years, and I can tell you the differences are vast. Just one example, is the fact that in America, there's no such thing as "Gazumping" - it's just not done.

2b, Apple and Mo all have excellent advice above.
I'd add one thing - Do take some time to sit with the Realtor your relocation company has offered. Ask that Realtor to give you an orientation to the process itself, and ask all of your "what if" questions right up front. Ask, "are you able to represent me as a CLIENT?" "Under what circumstances might you not be in a CLIENT relationship if we do work together?" and so on. Some of these answers will vary broadly depending upon the State you're lookin in. That's because the laws of agency vary a good deal. Realtors are all held to a certain standard, but they laws and procedures do vary a bit.

In the unlikely event you simply can't build any rapport with the agent assigned after an interview and a chance to get all of your questions answered, ask to speak with that agent's Broker - often the owner of the office. It's that Broker's job to serve the Relo company - and you. The Broker doesn't want you working with an agent you can't communicate with.

And 2bindenver's right. 2b can indeed provide a referral for you anywhere in the country. I'd trust 2b any day! You just want to make sure your relo company agrees.

Cheers,
David

[tiggywink]

Thank you ALL so much! My pulse rate has gone right down...it is so hard to understand how things will be different from here in the UK (ie the gazumping, no regulating body here for estate agents, buyer goes knocking on doors to view homes alone instead of being accompanied by agent, to name but just a few...)

chaz, such excellent advice, and the voice of reason. I do trust people to do their jobs and overwhelmingly have found that they do. I'm not usually a suspicious person by nature, but I guess I got a little "sky is falling" there for a minute.

2b--I would be interested in hearing your recommendations, I will pm you once I get one cranky toddler to bed Thanks.

Annie, again, thank you. You don't know how much I appreciate this advice, it's all unchartered territory for me, I swear I'm not such a ditz in real life.

MoMark--thanks for sharing your story and the advice about the inspector. I think the relocation company choses one for us as a part of the deal. The process is completly foreign to me, I'm going to just relax and let it all unfold as it's supposed to. (well at least try!)

Honestly I do appreciate all of the time and expertise you have shared, I definitely would have been a basket case by now if I hadn't found this forum.