One of the most crucial aspects of a Buyer-Broker/Client relationship is just that – the relationship. The trust that each must have for each other. BloodhoundBlog has an excellent post detailing one of the potentially thornier aspects of this relationship and a way by which to establish a level of trust from the start – provide an out…. here is language we routinely use on our Buyer Broker Agreements:This agreement will be terminated without recourse upon written notice by either party.“Either party†means I get to fire them if I want to, too …Not bad. Not bad at all. *BloodhoundBlog is fast becoming must-read for me – learning from others is one of the best ways to better oneself.
Browsing Category Buyers
Valuation in a Vacuum
Valuation in a Vacuum – Appraisals and market analyses can be two very different values. An appraisal should be a relatively scientific valuation based on square footage A valuation provided by a Realtor typically takes into account other items, such as a property’s proximity to amenities, views and other intangibles that may be difficult to value.One thing that has always bothered me, and this is not intended to be an attack on appraisers – Why do appraisers need a copy of the Contract to Purchase prior to their doing their valuation?
Dual Agency – Who benefits?
One of the primary values a Realtor brings to a transaction is representation – representation of his client’s best interests. How can a Realtor advocate for the best interests of both parties and still maintain the perception of fairness and full representation? In my mind, there is a difference between treating all parties fairly and honestly and being able to advocate with 100% vigor for one party. Realtors practice dual agency all the time – successfully. Never had I had someone remark how much they appreciated their agent representing both sides. I have been told numerous times by clients how they perceived their agent in a shady, less-than-honest manner because that agent had both the buyer and seller…. In a divorce, would you have the same attorney represent both parties?* As I was researching another post, I came across this post on Dual Agency. I read just the headline before writing this post, as I didn’t want to be influenced.
Where are the buyers?
from a client yesterday with whom I have been working for several months.”I are going to be out of the housing market for a while. We’ve just decided that with interest rates going up, the market changing and the bank not getting the monthly payments to where we’d like them…..it’s just in our best interest to wait right now. I know the market’s beginning to change as the article in the Daily (Progress) said yesterday. And, we’ve seen it ourselves with 817 and 824 Harris still on the market…. We’ll have more money saved for a down payment and hopefully prices will be down even more with the interest rates going up.” So, I will sell them something next year (or the year after …) This is a long-term business that necessitates a long-term frame of mind. People are returning to buying houses with that mindset, which qualifies as “a good thing.”
New Construction Closing Dates
Builder: We’ll close on 28 June.Buyer: Really?Builder: Well, probably…. As close as we can…. You’ll still buy the house, though. And if closing is delayed because of your actions, you will be heavily penalized.The above fictional conversation is a close representation of the recent sellers’ market and new construction. As she is very prone to do, Ardell has written an excellent post at RCG about the potential perils of new construction.Last year, of the new construction sales wherein I represented buyers, only one was on time. One house was nearly three months late.All I will add is this – as the market shifts, builders are going to have to reach out to buyers more and make more accommodations than they have in the past. Builders are already making massive concessions…. The next 12 to 18 months are going to be interesting.
Question to ask your Realtor
When interviewing your Buyer’s Agent, ask him/her whether he/she will accompany you for the home inspection. I had a “Buyer’s Agent” tell me today that he had left the home inspection because he had “better things to do” than stick around for a home inspection and that they were a pain in the a**. How does one represent a buyer when one has no idea what is being referenced in the home inspection report? Sadly, this was a “seasoned” agent rather than a newbie.
What will it take?
Talking to one of my clients last evening, discussing why his property has not yet sold, we discussed how I, despite having been in the business for almost five years (a grizzled veteran based on the number of new agents out there), have seen only the “boom” in the market. There are a lot of incentives out there that we haven’t seen before.