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Choosing the Right Buyer’s Agent in Charlottesville

in Buyers dual agency Public Perception Questions for readers on

Last week’s article in the Daily Progress was good, but as I told the journalist at the time – there is so much more I wanted to go into that article, and newspapers are so limited by what they can offer in print. They deal in inches, and for better or worse, bloggers don’t have those limitations. With that preface, this is one of things that didn’t make it in the article due in part to space limitations – My advice to buyers in the Charlottesville area –

Choose the right representation. Choose the right buyer’s agent. Choose someone whom you trust and get along with and like – not just because you met them at an open house, or because they have a blog, or because they are your sister’s husband’s friend who is just getting started and needs a break. Choosing the wrong representation is not just not worth it.

A good (great) buyer’s agent is someone who will advocate 100% on your behalf – simple. Contrary to public opinion, a good buyer’s agent is focused on the client’s needs more than their own. If you feel that “your” Realtor is focused more on the “sale” than your best interests – tell him.

Going waaay back in the archives to 2005, citing a WSJ article –

“Finding a real estate agent is kind of like dating. You have a small window to make an impression and then you’re with that person for a long time.

Here is my business philosophy when I work with buyers – I want to sell their house when they move. Every buyer client represents a minimum of three transactions –

1) The house they are buying right now.

2) That house when they move (everybody moves, even if “this is the last house I am going to buy”)

3) At least one of their friends or family when my clients proselytize for me

I work with Buyer-Broker agreements with my buyers for a variety of reasons – first and foremost because we negotiate my fee upfront, and I am free from the perception that I am not showing unrepresented sellers’ (FSBO) houses or those houses that are offering lower commissions in the MLS than many Realtors are used to. And – it formalizes the contractual relationship that I have to my clients and that my clients have to me.

You can find a sample (although a bit dated) Buyer-Broker Agreement here.

Updated – this is a current sample Buyer-Broker Agreement. Note that it takes two sections to warn/educate about Dual Agency.

My advice is this – do your due diligence. If you have questions about the process, what questions to ask (or if you have an experience you would like to share) please contact me anytime.

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And the coup de grace with regards to what blogs have over print – here are a bunch of very relevant links to help you get started in your research:

Here are some questions to ask when hiring a Realtor, courtesy of Redfin.

Do you like/do Dual Agency? One of my favorite posts I have written about Dual Agency is this – Dual Agency – Who Benefits? —- The Realtor.

Representation isn’t free

How to Choose a Realtor

Great Questions for a Seller to Ask

Questions to ask your (potential) agent in Charlottesville

Steering Buyer’s Agents

Why Use a Realtor – Decoding NAR-Speak

Rolling the Dice with Buyers

Being Selective

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Stupid is as stupid does

in dual agency Public Perception on

Recounting a tale from the trenches in the Charlottesville Realtor/real estate world …Another Realtor was showing buyers a development in Charlottesville and an agent was onsite holding an open house.  As the buyers looked around, the Buyer’s Agent (BA) and the sellers’ agent (SA) got to talking.BA: This road in front of the development: It goes into a neighborhood, correct?SA: Yes, but you don’t want to take them that way.  It looks much better the way you came in.BA: I understand, but I want them to see what’s around this property, going both ways.SA: If you go back the way you came, you can show them how close the grocery store is.BA: Thanks, but I can do both.SA: You should really go out this way – it’s much better.When the Buyers and the Buyers’ Agent got in the car – the wife asked, “Which way are we leaving?”…  Then, I’ll show you how close this is to grocery store, restaurant, etc.” Turns out, the wife had heard the Realtors’ conversation.1 – Your Buyer Agent is supposed to look out for your best interests.2 – Had this been a Dual Agency situation, do you think the buyers would have been more or less likely to see the “other” areas?3 – Realtors don’t have an obligation to assess an area’s safety level, but they do have an obligation to be the “source of the source” – provide references by which the clients can determine for themselves.4 – Recognize two things – not all Realtors are focused solely on “making the sale”; but some are.

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“Suing for lack of competence”

in Buyers Public Perception on

Trailblazers for what?Advice for buyers:Ask questions…. For too long, buying a house was an almost trivial matter for some, as was choosing a Realtor…. The Ummels say he encouraged them to get their loan through him. Mr. Little ordered an appraisal of the house but did not respond to the couple’s requests to see it, the suit charges.How I wish this were a case of Dual Agency; that would be too easy.

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Why Use a Realtor – decoding NAR-speak

in General Real Estate on

In many markets across the country, over 50% of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer.  Your Realtor acts as the marketing coordinator, disbursing information about your property to other real estate agents through a Multiple Listing Service or other cooperative marketing networks, open houses for agents, etc. The Realtor Code of Ethics requires Realtors to utilize these cooperative relationships when they benefit their clients.I should hope that more than 50% of sales are performed without Dual Agency….  Your Realtor will generally prescreen and accompany qualified prospects through your property.a – I want to see that study.b – Allowing strangers into your home is the whole point of the MLS and lockbox system we use!…  Your Realtor is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).Managing the process and transaction and knowing the pitfalls and problems that may arise is one of the key components a good Realtor brings to the transaction.It’s getting harder to say “I’m going to market your property better than the rest,” because the distribution tools are flattening; more on this in another post.Did I mention that if we eliminate Dual Agency and End Cooperative Compensation many of the problems go away?

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Another reason blog “leads” are better

in Blogging dual agency Public Perception RE Blogs on

The differences between leads generated from blogs and “leads” purchased through one of the various blood-sucking non-value-adding referral companies are many.  Some of the most crucial differences are that blog clients:1) Are typically further along in the process of hiring an agent (whether buyer’s or seller’s representation)2) Have vetted me, at least a little bit, by reading what I have written over the past 34 months, which makes the process more efficient for both of us.3) Frequently are more aware of the current market and some of the factors impacting the market.4) They’re not “leads” per se, they’re typically conversations about whether we might work well together.4) I would never have gotten this question from a blind internet lead:(b) We’d obviously prefer to avoid dual agency if at all possible.  If an appropriate listing comes up through your C21 office, though, what safeguards are in place to protect both sides?I love that this question is asked up front!  Fortunately, I have an opinion on dual agency – get rid of it.All in all, the hours spent reading and writing every day are worth it for my own knowledge and ability to represent my clients.

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What if I see something the inspector doesn’t see?

in Buyers General Real Estate Sellers on

A simple argument against dual agency.In speaking to a respected listing agent last week while negotiating an offer, she assured me that I wouldn’t have to worry about her selling the listing herself via Dual Agency.  (the thought had never entered my mind, as I know her and trust her, but I don’t trust Dual Agency).From the Realtor Code of Ethics:When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client.

…She said that she decided many years ago not to represent both parties in a transaction after one experience:She was representing the Seller and had written the offer for a non-client purchaser….  That question alone should be sufficient argument against Dual Agency.While the above is not a clear example of Dual Agency, the analogy applies especially to a Dual Agency situation whereby an agent has pledged his allegiance to his client – how can one serve two masters?The inherent conflict of interest disqualifies all arguments for dual agency.

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Steering buyers’ agents

in Sellers on

In a presumably-paid-for-piece in the “Business Journal” section of the DP a local Realtor says:”The commissions offered in a buyer’s market to participating agents are very important….  This quoted sentiment may be applicable to some Realtors, but I would argue that it’s not for most of the good Realtors in the Charlottesville area.Here are two questions for real estate consumers to ask -1….  – Do you get a higher commission if you sell one of your company’s listings?- How many buyers are even told anything about co-brokerage other than “don’t worry, the seller pays the commission.”?2….  (note: in my company, we practiced Dual Agency about 8.5% of the time in the same time period – which is still too high in my opinion, and I haven’t done it yet).As a buying or selling client – do you really think you are getting 100% representation from your contracted representative if your agent is “representing” both parties?Earlier this year I wrote A Call for and End to Cooperative Compensation.

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