Late last week another Seattle Real Estate Agent in my office got a call on a listing of hers from an unrepresented buyer, a buyer not working with an agent. My colleague asked me to meet with the buyer since she (rightly) prefers to represent her Seller 100% and not act as a Dual Agent, representing both the Seller and the Buyer and not providing either with their best representation.
I met with the Buyer and his wife at the house, they looked the house over, while I accompanied them answering their questions. They also asked to see the house that was listed across the street, and since I had the listing information about that house, we went to view that one as. Afterwards we talked in the driveway of the first house, mostly me answering their questions about real estate in general, the Seattle real estate market, and mortgages.
These Buyers are originally from another country, English is not their first language, and their prior experience in real estate in their original country was very different from how real estate is practiced here. They were driving around the nearby Seattle neighborhoods, calling the phone numbers on the signs for the houses they liked, and asking the listing agent to show them the house.
Because they did not understand the Seattle real estate process here, with buyer's agents working for the buyers, representing their best interests, and by working with them understanding their wants and needs to better advise the buyers, they were missing out on a very important resource available to them, one that they pay for in the price of the home. This is a particularly important resource for buyers who are not knowledgeable about how the Seattle real estate process works.
These buyers did not realize that they were putting themselves at a what could be a serious disadvantage in their home search, and negotiation which could cost them thousands of dollars. I encouraged them to choose a Seattle Real Esate Agent from those they had met, and have that agent work for them. They may or may not choose me as their Seattle Real Estate Agent, but I asked them to please choose someone to help them.
When you have not chosen a Seattle Real Estate Agent to work for you, you become an "Unrepresented Buyer" which unless you have done your homework, have experience, have the time, and knowledge can put you at a serious disadvantage and cost you thousands of dollars.
Please don't be an "Unrepresented Buyer" unless you can effectively represent yourself.
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Sounds like you as well as your fellow agent did a superb job of covering the bases for the unrepresented buyers. Hope it turns into a happy ending for you. Kudos to both of you for doing the right thing.
Deborah,
Absolutely right!
Who did they choose? If they were wise they would've chosen you for taking the time to REALLY educate them!
Lucky :)
DB,
Great article and "Words to live by" especially in our profession.
You earned a gold star today.:)
You a Five out of Five raiting from me today, Deborah! This really is something that buyers often don't think about. They think they'll get a better price on the house by dealing with the listing agent. It might be true, it might not. Personally, I'd want someone who represented my interests and my interests only. I want value out of what I'm paying for! Great post.
Deborah, I couldn't agree with you more. I have met with buyers who have done the same thing these people did. They would phone up the listing salesperson and view the house with them, never actually having anything explained to them.
It is imperative that we take the time to explain, to potential clients, what we do as REALTORS and the advantages of working with us including representation.I'm glad to here you did. Well done.
Diane- Thank you! I was impressed that my colleague choose to not be a dual agent, many in our office would be thrilled with the opportunity to have two paychecks and be a dual agent.
Lucky -Thank you! I did offer to meet with them the next day or when ever would be convenient for them to go over the real estate process with them so that they would have a better understanding. I also told them that I would do so to help them and that there was no obligation for us to work further together if they decided to choose another agent. So far I have not been able to set up a meeting with them, so I am not sure what they are thinking and doing.
Scott - Thanks for the "Gold Star"! : )
Sarah - Thanks for the points! I don't think they truly understand that they are paying for the service whether they use it or not, that is part of why I wanted to meet them again to explain that.
Wayne - Thank you! It is so important to help people understand how the real estate process works so that they can maximize the service they pay for, and get the best value for their money.
Nice post!
Glad to see un-represented Buyers getting a fair shake. Educating them about Buyer Agency helps us all.... I'd really like to see the Realtor Association talk about that in the advertising...
The public is largely un-aware of Buyer Agency... Our industry should work on that more!
-Bill
Bill@Sauneuf.com
http://www.Sauneuf.com
http://blog.sauneuf.com
Thanks Bill! I so agree, this is the heart of what we offer our clients and yet most are unaware of this service.
So true. Good post.
Carolin Benjamin
Bob and Carolin Benjamin - The Benjamin Team
Keller williams Integrity First Realty
Gold Canyon Arizona
Thanks Bob & Carolin!
Absolutely prudent post.
I always have a serious coffee meeting with these type of leads before opening the door to the car!
It's not just $$$ the stand to save but risk they lessen by working with someone who will be exclusively representing their best interests in the purchase and sale process. There are a lot of agents out there, especially in this market, who would prey on unrepresented buyers as an opportunity to do better by their clients as well as to piggishly grab both sides of a comission. This practice should be banned.
Hi Gene, that is a good practice, although in this situation I was meeting these buyers at the listing agents request to show these buyers the house since she does not (neither do I) practice dual agency, so their was no practical way to have a "coffee meeting".
Hi Brad, I agree so much. Some buyers can call and ask listing agents to show their listings becuase they are knowledgable about the process, but most people really don't understand how it works and can put themselves at a disadvantage. I also think being a dual agent is being greedy.
Thats a great line and way of referencing it to the potential buyer -here in british columbia we're still a ways away- purchasers still think that if they approach the listing realtor directly- they'll at least 1.) save some of the commission....2.) if its a multiple offer - have the listing realtor as your realtor - gives you first dibbs..............i guess i should add 'mythbuster' to my business card!
lizmoras@shaw.ca www.lizmoras.com
There should be some clarity established about dual agency. If a listing agent shows his or her own listing, he or she remains an agent of the seller. There is no dual agency. The exception is, if the buyer has signed a buyer/broker agreement of course. In writing the transaction, the agent remains an agent of the seller. The dialogue should go this way with the buyer. "I have been employed by and I have a duty to continue to represent the seller in this transaction. If you are ok with that, I will write your offer. The duty that I owe to you as the buyer is to be honest, thorough and professional. And just so we are clear, you should not tell me anything that you would not want me to tell the seller. In this way I can help you obtain the property if that is what you wish. Also, if you wish, you may obtain a buyer's agent of your choosing who can negotiate for you as well. If you are concerned about having adequate representation in the transaction, then you will want the paperwork reviewed by a real estate attorney of your own choosing."
I have seen agents employ this dialogue many times with considerable success. It's also, the ony honest way to approach a double sided transaction. By the way, how is it piggish to desire to write more business? Do we not all want to write more business? We should be careful about evaluating another professional's motives and methods when we are not there to see the conduct.
Jacquie Cliff, my wife is a real estate agent here in the Lynnwood and Everett areas and she actually will not do dual agency. If she has buyers for a listing that is hers, she will refer them out to another agent. Realistically it is impossible to be a true dual agent.
For buyers, they really should be educated before they go out shopping as well. Especially if they are first timers or new to the area.