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Take a Buyer's Agent for a Test Drive !

If you can test drive a vehicle without signing a commitment why can't you test drive the services of a Buyer's Agent when considering a housing purchase?

Well of course you can! And just like car dealers, if one Buyer's Agent won't allow you a test drive without commitment, then go to the next one.

While inspecting some properties during your test drive of the Buyer's Agent, try some questions like this.

If I select you and your Agency to represent me as my Agent in buying a property, what will happen if I become interested in a property where your Agency is representing the Seller?
If I select you and your Agency to represent me as my Agent in buying a property, will you continously act in Single Agency and undivided loyalty or could I be asked at some point to agree to Dual Agency?
What if I want full representation throughout the process and I tell you now that I won't ever agree to Dual Agency?
Will you research and disclose the complete market history of any property that interests me?
Will you prepare a comparative market analysis for a property I'm prepared to offer on, before I make the offer?

And even before you take the test drive you should inquire about the Buyer Aqent's experience, real estate credentials and any special skills such as construction, interior decorating or others.

The best Buyer's Agent for you is out there somewhere.

And like finding the best vehicle, consumers really should take a test drive so they aren't disappointed.

Posted by Larry Estabrooks, Moncton Real Estate on 04/04/2009 02:15 PM

Comments (12)

Buyers Agent in the Home Buying Channel

buyer agent

This post has been included in New Brunswick Information
Post is included in group: Canada, eh

12 Comments on Take a Buyer's Agent for a Test Drive !

APR

Larry -- I agree that a buyer should have trust and confidence in their agent, and that not all buyer's agents will sufficiently inspire these feelings in their clients. Do you believe that it is possible to establish this relationship before getting into the car to look at homes? If so, how would you do it?

David Ravashiere - Tee 2 Green Real Estate

While I understand where you're coming from, your analogy is a poor choice.

Unlike a car salesperson giving you a test drive (a service that ANY salesman can give you), the services and RESULTS of a real estate professional can vary GREATLY.

A better analogy would be to compare a Real Estate Broker to an attorney, doctor, chiropractor, etc. (where the end result has a direct correlation to the providers expertise in his/her chosen field.

If you believe all agents are the same, I'd venture to guess you're not one of the experts in your field. Wolfgang Puck doesn't think every chef can cook equally. F. Lee Bailey doesn't think all attorneys can accomplish the same thing in the courtroom. Michael Phelps doesn't think all swimmers can get to the finish line the same. You shouldn't make the mistake of grouping all real estate agents together, because they aren't.

See you at the top... I'll be waiting,

Cameron Novak
Corona & Riverside Short Sale Agents
The Homefinding Center^TM
Corona, California
951-212-7479

We have experienced that we are able to gain a very good or bad relationship prior to meeting with the buyer. This is due to our ability to help people via the internet and sending them a welcome gift.....most of our buyers are from out of state. If we do not get a buyer's rep agreement signed the first day, we will go our separate ways. We do it nicely, but our time is way to valuable to be used. Two parties will know after communication through the internet and one day of showings if a relationship is there. Odds, for us, HAD been very high that if we did not have a buyer's rep after the first day, then we were being used. It is pretty simple, just look at the deals done with a rep agreement signed early and one not signed. It is an eye opener.......

While it is in the interests of the buyer to work with an agent in whom they have confidence, it's also reasonable for the agent to have a fair shot at compensation. I will work with a client as a Buyer's Rep on a short-term basis, even one day, so they will not feel undue pressure in signing on with me. But if I am taking them to properties and they decide to buy, then it's not unreasonable for me to be compensated. Without the signed Buyer's Rep agreement, I have no leverage regarding payment for services rendered.

I like the Buyer's Rep agreement because it formally recognizes the business relationship between me and clients. Since I'm taking people into the private residences of sellers, I just feel better with formal recognition of the working relationship between me and clients. If we don't have a formalized business relationship, I can find no justification in taking someone on a tour of a seller's property. We can sit in the conference room and look at maps and photos, but we need an agreement, even short-term to make a field visit. So far, getting the agreement signed has not been an issue.

David, thanks for your comment. Sure there can be some level of trust and confidence before any showings. For instance potential Buyer clients who are referred by another client or another licensee. But with a totally new potential buyer client I believe inspecting a few properties helps build their level of trust and confidence. Many first time homebuyers need to feel they can place their trust in their Buyer Agent.

Cameron, I agree that the services real estate professionals provide can vary greatly. That's exactly why I make the case for a "test drive" of the Buyer Agent's services. So the buying consumer has an opportunity to discover the differences.

And I definitely don't believe all licensees are the same. Again, why I make the case for a "test drive".

I'm definitely an expert in my field. You're guessing I'm not. That's because you don't know me and we've never met face to face. However if you took me for a "test drive" you would learn of my expertise first hand. Then you would have an informed opinion of my expertise in representing Buyer clients.

Tim, thanks for your comment. One day of showings is usually all it takes for me to impress a potential Buyer client with my abilities and skills. A single showing is usually not enough to make a good impression.

Wayne, thanks for your comment. It is definitely the best policy to have a written Buyer Agency agreement. But I will do the test drive thing without requiring the consumer (potential Buyer client) to first sign one.

If I may ask, in your jurisdiction, if a licensee gets a call from an unrepresented buyer to view a few of the Agency's listings, isn't the licensee obligated to show them to the unrepresented buyer even though the licensee has no formalized business relationship with the unrepresented buyer?

APR

Larry -- If I may, I'd like to ask a quick (but unrelated) question. I notice that you are a Canada based business. I don't know much about real estate law in Canada, but you seem to know something of US laws. Do you notice any glaring disparities between Canadian and US real estate law and, if so, can you illustrate them?

I have no particular reason for asking ... other than a curiosity that might have something to do with insomnia.

David, I hope you got some sleep last night.

No difference in agency law really. Both countries go way back to English common law. Of course the real estate legislation differs amongst the Provincial / State jurisdictions. Whereas the top level license is an Agent's license in some jurisdictions, it's call a Broker's license in another.

The only thing I've not yet found is licensing legislation that licenses a "salesperson" as an "agent". I find that the terms "agent" and "agency" are greatly misrepresented by licensees and the public alike.

Thank you Larry for a great post. We actually are copying it, to bring up at a future meeting with our Buyer Agents.

Also thanks for the invite, will be following you!

Al and Peggy Cunningham

Al and Peggy, you are very welcome and thank you for your comment.

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