The only issue I have here is that you should not claim that your buyer agency services are "FREE" -- unless they are... do you make a commission while acting as the buyer agent? If you do, it is not a free service. Claiming it is a free service is not only misleading, but also diminshes in importance the aspect of agency that deals with representing buyers. Buyer are in fact paying for the service, whether through cash or through an added amount to the purchase price, which they pay. So unless the price is reduced by the amount of the coop (buyer agent) fee, they pay.
And well they should... the services of a buyer agent are at least as worthy as those of a listing agent... time, professionalism, picking up after incompetent listing agents, or unmotivated listing agents, or just, as we have had to deal with recently, a listing agent that thinks they are a gift to humanity, but cant be bothered to actually deal with there responsibilities... if only the banks knew how little service they get from most listing agents in REO property...
So I am often flabbergasted when I hear of people who are buyers agents claiming to offer the service for free... the proper phrase would be "at no additional cost" -- if that is true... these days, we often charge above the coop fee for buyer agent services, and we are aware of many who charge an hourly rate, cash, whether the buyer buys or not... the service is very important, and should not be degraded within the profession by inaccurate representations like these...
Via
Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes):
I get calls from buyers whose real estate agent told them to call me to see one of my listings. Their agent can't make the appointment or show the property because they are at work (their real job).
If that buyer finds a property they like, their agent is not qualified to write the offer. They did not examine the property for potential issues and needed addendums. Many times they can't even be reached to get the offer written in a timely manner. You can almost guarantee they do not know the market or are even proficient in contract writing.
If they work a regular job elsewhere, they may not be available to attend the home inspection or the escrow signing. In my experience they will not be attentive to the escrow process, will blow the time-line and will be impossible to communicate with. Yet somehow they feel they will have earned a commission.
When working with me, buyers and sellers get an agent who does not cut corners. answers the phone, knows the market and truly cares about my clients and will always put your needs first.
Here are a few of the things I consider standard service. Very few agents in my area are offering these services to their clients.
For my sellers:
- Quality pictures including wide angle.
- Your home posted in the MLS and many websites (too many to list).
- Color flyers and brochure box in front of listing (where allowed).
- A pledge of services.
- A website with a domain name and sign with the web address.
- Virtual tour.
- Regular Sunday open houses.
- Broker's open houses on the monthly date for the area.
- An electronic lockbox that tracks everyone who enters the home.
- Regular communication with sellers including comparable market reports.
- Print ads.
- The property promoted at regional REALTOR® meetings.
- E-mails to top producers in the area.
- Benefit of the market knowledge of one of the top, full time licensed brokers in the area and his support team.
For My Buyers:
- Free buyer's representation.
- I will schedule and accompany you when you preview homes and point out potential red flags.
- Market analysis and public records check of any property considered for an offer.
- Prepare all documents and explain them in detail. You sign nothing you do not understand.
- Negotiations by an experienced licensed broker.
- Manage the entire escrow process.
- Help with referrals of other professions such as inspectors, loan officers, etc.
- Accompany you to the escrow and mortgage signing.
- I continue to work with you after the transaction if any issues or questions pop.
Many agents have not done well in the market and have cut back on expenses. That is the reality. The problem is clients are buying and selling the most expensive thing own or will own. Why should they entrust it with an agent who does not have enough money to properly market their home or have the time to properly represent them?
I will finish this with a statement I have made many time in the past. Real estate is a full time profession. You cannot sell real estate part time and do it well. Theoretically it is possible, I am just not seeing in real life.
Paul Silver, Owner
Focus Professionals, Inc.
Rhode Island Real Estate Services
;)
;)
Paul. Sorry to disappoint. Even Maryland license law says that Buyer's Agents can advertise their services as free.
Who cares? The seller always believes that they pay the fee anyway. In fact, in many ways with weak inexperienced agents, it empowers the sellers and listing agents.