What should a buyer look for before choosing an agent to represent them?

What should a buyer look for before choosing an agent to represent them?

1. Ability to help a buyer evaluate homes
2. Skill in negotiation
3. Undivided Loyalty
4. Proof of savings and past client satisfaction.


An Exclusive Buyer Agent covers the negative aspects of a home as well as the positive - in a consultative role - versus a "sales" role.  We give them the pros and cons of a property rather than trying to sell them one. I might show my buyer a number of homes in a given day - and it might be that I would not recommend any one of them (or unless the price came down to an acceptable level - as price fixes everything at some point.)

A couple of people who were referred to us  - said that a past client (or past clients) - told them that we had told them when "not to buy a property" and that is what they were looking for.


An Exclusive Buyer Agent buyer agent is focused on:

1. Finding the best home for the buyer
2. Helping the buyer buy it at the best possible value (frequently aligning their compensation with the buyer's interests vs. adverse to their interests as is typical - ie - an agent representing the buyer getting paid more when the buyer's price goes up.)

3. Helping the buyer save money on a loan (shopping lenders) - vs. referring them to an "in-house" lender.


An Exclusive Buyer Agent's role is to consult and counsel and protect a buyer.

They typically have:

1. A higher level of experience serving buyers and better negotiation skills.


2. They also have unwavering/undivided loyalty to buyers - never having any "dual agency" conflicts of interest.

Questions to Ask Any Agent Before You Hire Them

 

7 Comments on What should a buyer look for before choosing an agent to represent them?

Hi Rick:  Nice list of things to look for when chosing an buyer's agent.  Hope all is well in your part of the world.  Things are busy in New Hampshire.  I have had several buyers find me on Active Rain -- check out my most recent blog.  Take care, my friend.

04/17/2008 12:54 PM by Joan Whitebook, ABR, e-Pro, CEBA (Buyer's Option Realty Services)


Before I was a Realtor I had an experience with the most negative, nasty, cigarette smoking Realtor who turned me off to everything we looked at. She had nothing nice to say about anything. She focused on only negative issues and could not seem to find anything positive in the homes. I don't know if she thought it was good to point out these issues but when I became a Realtor I remembered how much that bothered me.  I make sure to focus on the positive. It's not my job to point out problems in a home. That is the home inspectors job. My job is to find a home that suits their family needs such as size, rooms, yard. If I am showing something that may be a little off but has potential I focus only on the potential and not what's lacking. For example, the family wanted 4 bedrooms, I found a 3 bedroom with a den off the family room that was huge and offered plenty of space for a closet or an old fashioned wardrobe. It's better to focus on the positive and your positive attitude will keep the client positive.

04/17/2008 01:12 PM by Patrick Lambert (Century 21 All Islands)


Patrick - Our buyer clients appreciate it when we tell them after they tour whether the roof looks shot (or has many raised shingles etc -- suggesting it is on it's last leg) - or the age or approx age of the mechanicals -- or the fact that most buyers aren't going to see X, Y, and Z as a benefit -- (such as power lines in back -- near a busy road -- certain colors or types of kitchen cabinets or flooring etc. etc.)

 If they like it - that is fine - but I make them aware that they may have to spend X dollars if they want to upgrade X, Y, and Z.  I also make them aware of window quality & age.

 It IS your job (if you were a good buyer agent) - to point out problems that you might see - before you write a contract.   

It is nice to point out potential - but a good experienced agent - would point out the approximate "cost" to obtain that potential.  If the house needs new windows & it may cost 20k - they can be sure I'll tell them - whereas - with a traditional agent such as yourself --- you'll be "selling" the potential of something else - and they'll get burned 20k.

 Most home inspectors don't even get into window quality - they just analyze whether it functions or not.

(though the ones we refer go beyond that -- because they aren't the type of inspectors that some traditional agents use "ones that won't blow the deal.") 

 You need to objectively point out what is there - and what is lacking.  

I have more "positive" clients as a result - because they don't have to deal with someone "selling" them on something - pointing out the "potential" -- and then the buyer resents what you did - later...

 We have a very positive attitude - but unlike you - we point out what is wrong with a property - and our buyer clients really appreciate that -- BEFORE they make an offer and spend money on an inspector (which is after contract acceptance) -- so that they can get some of the price concessions up front - as "price off"

 

 

04/17/2008 03:35 PM by Rick Hauser ABR GRI (Relocation Advisors Group Inc.)


First off, I am a GREAT, experienced agent. Sorry, I don't agree with you that it's my job to point out what's wrong with the home. I am not a home inspector. In fact, in Hawaii home inspectors are licensed. Since I am not a licensed home inspector it's not my job to point out a homes faults, in fact, I could be fined for practicing a service I am not licensed in.  Just my opinion, but it's better to walk through a home and point out it's positives like large rooms or new tile rather than focus on old ugly cabinets or a roof with shingles lifted. They see the cabinets are old and ugly, they see the roof ... I don't need to point that out. If it is discussed I still find a way to focus on the positive. I am not a roofer, who am to say the roof is on it's last leg ... a Realtor ... not a home inspector. I try to see both sides. but I just can't agree with you. I just can't see how focussing on the negative is a positive. I don't consider that selling them into it. UNLIKE YOU, I prefer to let the expert determine what is wrong with the house.

04/17/2008 05:59 PM by Patrick Lambert (Century 21 All Islands)


I disagree Patrick.  There is nothing wrong with giving your opinion about the roof or the rough age of the mechanicals or the quality of the windows etc. when showing a property.  The home inspector would confirm or deny that anyway - would they not?  It is better to point it out than not point it out at all (before negotiation)

because then you are faced with a situation where the home inspector gives you items that would cost about 20k to repair - and there is no way that the seller is going to issue that much in a home inspection credit.

So - rather than have a deal for 20k less - the buyer has to kill it.  I don't call that being in the buyer's best interests. 

Of course a home inspector could give more details if we have a signed contract on the property - but an informed, experienced Exclusive Buyer Agent's estimate gives the buyer client a rough idea about where they would want to be in terms of offer price - given the condition.  

 Many buyers are totally clueless about the windows, mechanicals, or cost to remodel something.  They overlook it - and only look at the foo foo.  They can end up buying something that is "staged" well - but then have huge costs afterwards. 

But I guess you don't care about that eh?  (you make more when the buyer's price goes up anyway) 

And many inspectors don't even catch all the things that I catch or see (though most of my referred good ones do - but the ones the traditional agent refers -  don't).

 I'm so glad that you are a great experienced agent... 

 

 

04/17/2008 09:38 PM by Rick Hauser ABR GRI (Relocation Advisors Group Inc.)


Sorry, Patrick, but as an exclusive buyer's agent, I have to disagree with you on this one.  Of course, as a seller's agent, you are only doing your job by only focusing on the positive.  But as a buyer's agent, if you are not focusing on the negatives, you are not properly representing your client, in my opinion.

In Michigan, where I practice, home inspectors are not licensed.  However, I don't feel I need to be licensed inspector to tell when a roof is on its last legs, or to look at the maintenance sticker on a furnace and see that it was installed twenty-five years ago, or to see that there are screw in fuses in the electrical panel, etc., etc. 

If a client falls in love with a home and wants to buy it, that is just wonderful, I have shown them the right property.  However, I will point out obvious defects to them, all of which will be taken into careful consideration when making an offer on the property.  This buyer's agent certainly doesn't want his clients to think he sold them up the river when they finally figure out how much money it is going to cost to fix all the problems with their "dream home." 

This really goes to show the difference between true buyer agents and seller agents.  If you are buying a home, you better have a true buyer agent on your side. 

 

04/17/2008 10:56 PM by Buyer's Broker of Northern Michigan, LLC


 

Rick, it sounds like I have pretty much the same view you do.  I'm kind of curious why Patrick thinks he is a "great" experienced  agent and wonder if that also goes for his role when he is calling himself a 'buyer's agent'.

Patrick,  how can you use the home condition as a tool in negotiating if you don't point things out things that are both good AND bad.  You aren't even saying you don't see these things but that when you are aware of them you don't point them out.  That doesn't border on, but actually is, breach of your fiduciary duty to a buyer client.  

You have let something that happened to you when you bought a home obstruct your objectivity and that is getting in the way of your duty to buyers you represent.  

It may be in your own best interest to point out problems too. 

  • First, it will help you help the buyer negotiate, 
  • Second, it will make it less likely the deal will die after a home inspection due to a problem or series of problems that you could have given them a heads up about.  If they had gone ahead then they are unlikely to kill it when the home inspector points out the same thing.

You can disagree if you want but if you do I'd like to see a list of things that you think make you "great" in spite of the failure to disclose information you note about a house.

 

 

 

04/18/2008 07:52 AM by Paul Howard, Broker, NJHomeBuyer.com Realty


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