Is Your Realtor Working For You ?

 

You interview a real estate agent for your lakefront home and the Realtor says to you ” I am the best Realtor and I can prove it by the amount of homes that I sell the same day they are listed.”  Your first instinct is probably WOW !  And of  course, why not?  If you hire this person, your home will be sold quickly, end of story.

Now take a step back.  The best scenario is one where your home is available to all realtors, and for them to be able to show to their clients.  This ultimately will get you the best price. 

When I see  agents selling homes the same day they are listed, a few things come to mind. 

  1. Was the house priced correctly.
  2. If an offer comes in as soon as the home is listed,is it really the best price
  3. The agent had the property in mind for one of his buyers and talked the seller into listing at the agent’s buyers price

This type of information snowballs and everyone assumes the agent is just the best.  The downside for the neighbors that want and command a more appropriate price, will now have to put off the sale of their home or sell low.

If a listing agent tells the buyer that they can make the deal work, then the agent is not doing their duty by protecting the interest of the seller.  If the agent is not protecting the seller as their license states they should, do you really think they are working for you the buyer.  I am thinking that agent is only working for the best interest of themselves.

Here is an example:

     A home owner is talked into listing their home for $110,000.  Another agent brings a buyer and they offer the seller $107,000.  The listing agent knows of a buyer that wants the home for $105 ,000.  The listing agent now encourages the seller to accept the $106,000 offer because it comes with no contingencies, even though the seller has a higher offer on the table.  Let us look at the listing agents potential commission.

     Listing agent shares the sale with the buyers agent and splits the 6% commission on $107,000 which =$3210.00

     Listing agent brings their own buyer and collects both sides of the commission on $105,000 which =$6300.00

Which offer do you think the agent will be working the hardest on ? Your agent should be working for you and you have the right to find a buyers agent,  this will protect your interest.

The listing agents first priority is to the seller, not to the buyer. Your agent should not tell you what price to offer.  That should raise a flag.  If you are looking to list your property, do not just hire the person that everyone hires for a couple of reasons.  If that agent has so many listings, how will they find the time to market or show your property?  Also, marketing has changed over the last few years and is this agent going to utilize newer methods of marketing, especially since buyers tend to look for homes much differently than they did even 10 years ago.

 

  1. James Bupp

    When I sold my home in Endwell, I assumed that the agent would be working for the client but I really don’t think that was the case. For the agent, it’s 6% of the sell price, and if the sell price is 10K under
    market, the agent only loses $600 on a 100K house.

  2. marystgeorge

    Jim, In New York State the agent has a fiduciary responsibility to the seller when listing a home. Basically it means, it is the agents responsibility to look after the sellers best interest monetarily. When another agent brings a buyer, we are required to work cooperatively with that agent That is why on listing contracts, it is actually written out how the commission will be split with cooperating agents. If the listing agent does not bring the buyer, then they split only half of the 6% or whatever it happens to be with their broker. So they do have an incentive to find the buyer. Using your numbers, that would mean a loss of $1500.00

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Mary St. George