In life if you look carefully you will be able to see what another persons true intentions are most of the time. If you are going to buy a home you need to find an agent you can trust, they have got to honor their fiduciary (protecting your interests, especially your money) duties to you.
The way the real estate agent gets paid is actually a little counter-intuitive when it comes to this, we get paid a percentage of the purchase price of the home you are buying. We only get paid when a deal closes, so all of that running around is our investment in you. I look at it as an investment in my relationship with you and know that if I do a good job that you will let your friends and family know that I should be their Realtor, conversely if I do a bad job you will let them all know too and you should!
Agents run their own business and handle things differently - Agent X might have an advertising budget of $2,000 per month, meaning that they have to sell enough real estate to cover that plus all of their other expenses (website, internet, office rent, gas, insurance, Realtor dues, etc...) BEFORE they make a dime. The larger the advertising the more money that MUST be made every month ie the more clients that must buy a home or sellers that must close. Take a look at your agents advertising, is there a huge nut to be made or do they have the availability to take the time to watch out for you. Where will your agents interests lie, in making their own monthly nut or in finding you your perfect home at the best price?
Next, if you are working with Agent B who you have a contract with, they represent you. If you see an open house while out driving on a Sunday, and on a whim go through and decide you want to buy it, how do you proceed. It should worry you about the ethics, the morality, and your own pocket book when Agent X, who was holding the house open and you just met, says to you "lets go write it up, Agent B will understand and it is OK."
It is not OK and here is why:
- They are more concerned with making money then they are with you
- Agent X has just violated the REALTOR® Code of Ethics and could now face sanctions and possible loss of of their real estate license
- You could be sued by Agent B as they have an agreement with you that they are to get paid upon the successful closing of a home and Agent X knows this
- More than likely in this scenario Agent X is the listing agent representing the sellers of the property and they have an agreement with the sellers to negotiate a transaction on their behalf and is now going to get 2 paychecks one for representing the seller and one for "representing" you
- Agents must work together on a regular basis, you can fiercely represent your clients in a negotiating situation and still keep the respect that is so necessary to work as a Realtor
- If they do not respect their community, the Code of Ethics, contract law and their own business license, How are they going to respect you and your money?
Find an REALTOR® that understands that their reputation and word must be of value, work with that REALTOR® and honor your reputation and word. It could make a huge difference in your monthly nut.
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