Buyer’s Choice Realty blog

A very dear Exclusive Buyer’s Agent and friend since 1989 died this past Monday. Her funeral service was today at 4:00 EST. I first met Becky Swann at an NAR convention in 1989 before I had established myself as an Exclusive Buyer’s Agent. Becky was part of a group called Buyer’s View and a handful of us met with her at that convention to talk about how much buyer advocacy is needed in real estate. That was a time when no one was representing home buyers. The entire industry was focused only on seller representation. Becky was a vital part of NAEBA in the early years.

Becky founded IRED, The International Real Estate Directory. Becky and IRED have gotten many accolades over the years. Some of you may remember that Pat Rioux, another good friend and one-time manager of our Buyer’s Choice Andover Office, was a writer for IRED for a number of years.

One of our Dallas friends, Earle Rawlins, conferenced with a small group of us after the funeral service and shared the experience with us. Earle was the first in the country to open a Buyer’s Resource office. That was the franchise that Buyer’s Choice belonged to for a number of years.

Becky’s niece is an ordained minister and shared the eulogy which was very uplifting. In our conference call we celebrated Becky’s life and shared the fun experiences we had together. During one of the conventions in Dallas Becky was driving a group of us around in her RV. She ran right over a curb and when we mentioned it she laughed so hard we weren’t sure we would arrive anywhere safely. (People shouldn’t laugh and drive. LOL)

Anyway, she was another one of the early pioneers in our EBA movement. Inman wrote a brief article on Becky. Here is the link http://www.inman.com/news/2011/03/25/becky-swann-real-estate-web-pioneer-dies

Here is a link to the on-line guest book if you would care to see a few comments written. Visit Guest Book

#3. The MLS Is Only Part Of Our Inventory - When viewing properties with a listing company, you will most likely be shown all the company’s listings first and then go into the Multiple Listing Service (MLS) to see what other firms are offering.

Good Buyer’s Agents, will listen to their buyer’s wants and needs and then search for homes for sale in the MLS, For Sale By Owner (FSBO), auction properties, short sales, expired listings, and properties not even on the market.

It’s obvious that a listing firm is going to make more money when their agents sell the company’s listings. That’s why some buyers tell us “We were working with a Buyer’s Agent but the only homes they showed us were listed by their company”.

While it is true that most homes for sale can be found in the MLS there are other properties for sale out there. However, most real estate firms don’t like to show FSBO properties and some real estate companies prohibit their agents from showing them. Some even refuse to show “Entry Only” listings where the cooperating agent has to deal directly with the seller, even though they are in the MLS.

The reason, they will tell you, is that there is much more liability on the agent and real estate company. Besides, the MLS promises compensation (commission split) to the broker bringing the buyer to the table. With FSBOs the agent has to negotiate with the seller directly if they are going to get paid.

Some agents will go so far as to tell the FSBO they have a buyer but the owner need to list their home with them and they will then bring the buyer they are representing. This is one of the problems with the inherent conflicts when a real estate firm is working both sides of the table.

For Sale By Owner’s usually love working with Buyer’s Agents because we bring capable buyers to their home. I find that FSBOs are pleased to have a professional involved in the transaction and they don’t bulk at including the Buyer’s Agent compensation in the purchase price because in their mind it’s only half of what they would have normally paid.

There are lots of homes available to buyers through the MLS, but what if your dream home is for sale, but not listed? How is your Buyer’s Agent handling properties that are not in the MLS?
Ronn Huth 800 25 BUYER

#2. Everything You Tell Me Is Strictly Confidential - As a Buyer’s Agent, my clients can speak freely around me, knowing everything is kept in confidence. That includes how much they are willing to pay, time lines they are under, circumstances they are facing, and anything that would weaken their negotiating position.

For example, if I am negotiating plumbing and heating issues, I probably should not let the seller know that my buyer is a plumber. When we point out any of these issues we expect to use the going rate for repairs; not the buyer’s sweat equity.

At the request of certain buyers, I have even kept their name anonymous. I’ve done this when the interested buyer was an abutter from whom the seller would expect a higher price. In other instances I have kept the buyer anonymous when there was good reason the buyer did not want to be known.

There have been times when the buyers has put their current property Under Agreement and now are on the fast track to buy. Showing their hand as eager buyers is tantamount to paying more for the home they want to buy.

Confidentiality is one of the fiduciary duties a Buyer’s Agent owes to their buyer-client. Yet the custom, when presenting an offer, is to give the Seller’s Agent a copy of the buyer’s financial approval letter from their lender. How does that help the buyer get the property for a good price?

How is your Buyer’s Agent handling confidentiality for you. Can you think of other things you would want your Buyer’s Agent to keep confidential?

#1 I Look Out For Your Best Interest ‑ The client level services required of a Buyer’s Agent demand putting the buyer’s interest above all others, including the agent himself or herself.

A true Buyer’s Agent is obliged to give full loyalty and trust to their buyer and to follow the buyer’s lawful instruction. Beyond doing what the Buyer’s Agent is told to do, we have the responsibility to protect the home buyer throughout the buying process and negotiate on our buyer’s behalf.

Buyer’s Agents should approach the transaction as though they were buying for themselves. The Buyer’s Agent is an extension of the buyer. When it’s in the agent’s best interest to close and in the buyer’s best interest to walk, a good Buyer’s Agent will help you walk!

This is a little bit of what it means for a Buyer’s Agent to put the buyer’s interest first. Buyers should get this service if they are properly represented. Is you Buyer’s Agent doing this for you? How else would you like your Buyer’s Agent to look out for your best interest?

Price isn’t the only consideration in your offer on a home purchase, although it is usually the strongest. Other factors are: how strong you are financially, if your closing date is agreeable with the seller’s closing date and how flexible you can be. How can you convince the seller you are the best buyer for their property? What does the seller need and want?

You also need to know when to ask for what. You need to look for any exclusions on the listing sheet. You need to decide what personal items you want to include as part of your offer. You need to know what other buyers paid for similar properties.

Fixtures typically stay unless they are excluded. Personal property is a different story, but it’s not always best to ask for a lawn mower, piano, refrigerator, or washer/dryer in your initial offer. Your Buyer’s Choice Agent will coach you in this area.

Timing is also an important factor. Is the seller in a rush or comfortable staying for a while? Is the sale contingent upon them finding suitable housing? Can the parties close and the sellers lease back? The information in the offer will eventually be transferred into the purchase and sale agreement along with your attorney’s additional addendums and riders to protect your interest.

I recently earned the “Certified Negotiating Expert” designation in real estate and would be more than happy to work with you and our Buyer’s Agents to negotiate a good home purchase. Call us at 800 252-8937

It isn’t going to cost you any more to use a Buyer’s Agent and it will most likely cost you less. For example, our Exclusive Buyer Agency has saved thousands of buyers millions of dollars in home purchases.

Some buyers still seem to think if they work alone with the Seller’s Agent they will get a better price or they will capture the cooperating fee for themselves. This is a foolish approach and is akin to hiring the opposing attorney to help you win your case.

The best way to determine which Buyer Agent to use is to interview them. The Massachusetts Association of Buyer Agents (MABA) suggests a buyer ask these questions when they interview a Buyer’s Agent:

What experience and specific training have you had as a buyer’s agent?

Are you a member of a buyer’s agent association?

How long have you worked on the buyer’s side?

How long did you work on the seller’s side?

Do you also list houses for sale? (This is an inherant conflict of interest)

Do agents in your office list homes for sale? If yes, how do you plan on keeping my information separate from seller’s agents in your office? Do you have a private office? Private fax? Private phone service?

Do you have regular office meetings to discuss the market and techniques in real estate? If yes, do your sales meetings focus on ways to get the best price and terms for sellers, for buyers or for both?

Do you work with a partner in your office? Does your partner list homes for sale? If yes, what will you do in the event that your partner is the listing agent on the home that I want to buy?

If you (and your partner) list homes for sale, how many of the last 20 transactions that you have done have been on the buyers side?

Will you sign a guarantee that you represent my interests exclusively and not attempt to sell me houses you or your partner list?

What geographical areas are you most knowledgeable about?

Do you have full access to the area Multiple Listing Service (MLS)?

Do you have access to For Sale by Owner (FSBO) and foreclosed properties?

What is your fee structure? Will you give that to me, in writing?

Will you make decisions about what homes to show me without regard to co-fees offered to cooperating agents on MLS listings?

How many homes are you prepared to show me?

The agent you are interviewing is obligated to go over the mandated consumer/licensee relationship disclosure with you. This is a great opportunity to get all your home buying questions answered. You should consider it a hiring interview. Is this the agent you want to represent you? A good Buyer’s Agent will be asking, “Is this a buyer I would like to work for?” If it’s a match, you’ll be off and running together.

It’s important that you feel a connection to your agent and that you can draw on their experience and market knowledge. You will probably get a lot of home buying advice from friends and relatives but remember, your agent is legally and ethically obligated to be your advocate, so trust what they say. The fiduciary relationship is one of trust and includes six specific duties: obedience to your lawful instruction, undivided loyalty, full and proactive disclosure, confidentiality, accountability, and due diligence.

Call or email me if you would like to discuss this further. 800 252-8937 or Ronn@BuyersChoiceRealty.com