'You're Fired!'--How to Avoid Firing Your Real Estate Agent

Today, I came across this article, When to Fire Your Real Estate Agent. This article makes some great points about things you should consider before hiring someone to help you buy or sell a home.

 

Here in Virginia, it is a surprise to many consumers that Realtors® are required to have them sign a contract before providing any substantive real estate advice or service.  Ministerial acts, such as meeting at an open house or providing Multiple Listing Searches that are used by the consumer to gather information do not require an agreement. You can, in fact, ask a Realtor® to write up a purchase contract for you without entering into a relationship; if you do this, however, be warned that they cannot provide you with any advice. Once they provide advice or opinion, the parameters of the relationship change and you will need to have an agreement in place.  If you are a seller, the agreement would be a listing agreement. If you are a buyer, the agreement would be a buyer's agreement.

 

When I work with a client, I try very hard to give them a chance to 'try out' my services before I have them sign an agreement. One way that I do this is by allowing my buyer customers to sign short-term buyer agreements. Some of these are as narrow as one property and sometimes they are just for a day or two.  Once we have worked together, I have always been able to convert these agreements into longer contracts--because they see the value that I add to their transaction. It is a little tricker with listing agreements. A property needs to be listed long enough to have a chance to get offers. It also costs me money to list a property properly. I show my potenial clients my value early by discussing preparation and market information--while trying to balance not giving away the counsel for which they are hiring me. While I would always let a dissatisfied client out of an agreement, I find it far more beneficial to both of us never to enter in to an unsatisfactory agreement. I find this works well for me; I have never been fired by a client.

 

If you are considering a home sale or purchase, select your Realtor carefully. Be sure you understand how, and when, they work, how they communicate, what their background is and, most of all, determine if you will trust them to look out for your best interests. 

 

The relationship between a client and a Realtor® is a fiduciary one. Before you enter in to such an important relationship, be sure that you understand how it will work and are comfortable with both the parameters of the relationship--and the person on the other side.