It has occurred to me recently that some consumers do not know why they should not have another Real Estate Agent show them homes. There seem to be many different reasons why consumers do this, I will discuss a few:
- My Real Estate Agent is too busy
- I just drove by the home
- I don't want to lose it if I like it
I'm not going to lie or over inflate the reasons why you should reconsider doing this, I'm going to be straight forward from a Real Estate Agent's perspective and YOURS! All of these are equally important in one way or another, but I will start with you.
The Big "R"-Representation- This point probably deserves a post of its own but I will break it down. If you decide to write an offer on the home you see with another agent, probably listing agent, this really is not in your best interest.
- If you notice what looks like termite damage, foundation damage, etc. while seeing this home and it concerns you-YOUR agent will not see it. How can they help you negotiate?
- Pricing a home depends on many things such as updates, condition, location, size and sometimes floorplan. How can YOUR agent effectively help you negotiate?
- The listing agent Represents the seller. If the listing agent shows you the house, everything said will possibly side with the seller, not you. This could also pose a Representation problem between the listing agent and the seller. Think about it as the Prosecuting Attorney also being the Defense Attorney.
Negotiation- If the listing agent or seller shows you the home this could potentially take "the edge" off of your negotiating. You may be focusing on the positive points of the home, which will make the seller's think you are going to offer close to asking price. I know this could be a controversial point, but it's the truth. Just because the home is nice and updated, doesn't mean it's worth what they are asking. Your own representation sided to you is VERY important.
Now, for the agent's perspective-which a couple points deserve to be in both categories.
Again, the Big "R"-Representation but from the agent's side. If you are under a Representation Agreement with an agent but look with another agent, this could pose a break of agreement. If another agent gives you advice and opinion the other agent has unknowingly stepped on toes so to speak.
In Texas this is called "Interfering with Agency". It's the same as if your home was listed with another broker and an agent tries to get the listing. Although this would not affect you as much as the agent, I feel it is something you should be aware of.
It's our job! I have run across clients that say "Our agent is so busy, they didn't have time to show me". I just really don't get this one. Again, I'm going to be brutally honest. If your agent doesn't have time to show you the house, are they going to take time to negotiate the contract properly, including repairs? If an agent has agreed to work with you, it should be from beginning to end.
Does this include New Construction? Absolutely! The Salesperson at the Sales office for builders are just that. They represent the Builder. Again, think of it as the Prosecuting attorney being the Defense attorney. If you sign a contract with a builder without your agent, you may miss out on some great negotiating or "freebies" in upgrades.
The Knowledge to help you. As an agent we need to know your likes and dislikes. If you see a nice home but only if the family room was larger and the kitchen cabinets were a different color, your agent needs to know what that is. We may know "the house" for you. Having your agent there to see what you are referring to is very important.
These are the main points and I hope they help. Next time you want to call the listing agent to show you the home, I hope you will reconsider. Don't think about it being in your agent's best interest, think about it being in yours'. A good agent will want to do everything in their power to find you just the right home. Even if that means seeing 30 homes before finding the right one.
If you have any questions about seeing too many, just ask your agent. You might be surprised how they are willing to go above and beyond the call of duty to make sure you buy just the right home.
Hi Teresa, sounds like you had fun with that one! :)
Hi Herb, we can do Dual Agency but technically you don't represent either party. You can not give either party advice or opinion. Seems kind of worthless to me, but as everything else-it has it's time and place. I am mainly referring to when you are working with a buyer and they have other agents show them over the weekend or something. Especially when they don't tell the agent showing that they are working with an agent. Thanks for stopping by Herb!
Stephanie--Like Herb Hamilton in Oregon, agents in Minnesota can be dual agents or facilitators where private information is private but anything about the condition of the home must be disclosed by a licensed agent. Some do consider this less representation, as a dual agent you cannot do anything to damage either client so no recommendations can be made to either buyer or seller. But it does work...And the agent must always disclose any known or suspected problems like the foundation, roof or water damage.
As for all of the other points that you made...Good job. Not having buyers representation for new construction can be a huge loss to the buyer. And if an agent is too busy to take you to see homes, they are not working in your best interest.
Good post!
Hi Teri, I didn't mean that the agent wouldn't disclose material defects, just that they would focus on the positive points over the negative. They are just doing their job trying to add value to their listing. Sorry if that wasn't clear. I'm just not a fan of Dual Agency because I don't feel that people get equal representation in most cases. Yet, it has it's time and place.
Hi Jeff, I have used this line for years. It's the best way to get the point across. I try not to show my own listings too. It's a tricky situation to be in. I'm glad you agree!
Great post Stephanie!
Dual agency does set itself up to be a conflict of interest.......not sure how you can negotiate in everyone's best interests unless you have a straight forward, no problem,fairly priced home.
Thanks Ana! I totally agree.
Lisa, you got it! I'm doing my best.
Hey Sally, Thanks! and Nope, no feature.
Stephanie - Great blog and good points!
Recently I have run into this problem of being too busy! While it can be a good thing it also can hurt my business and reputation. Unfortunately there are only so many hours in a day and I can assist only so many clients at a time.
Therefore, I am now creating a team to assist me with certain aspects of my business. I have a transaction coordinator that will handle all the paperwork to make sure that it is complete, as well as checking that items are handled in a time efficient manor. I also have added a Buyers Agent that will assist me in working with my buyers. I love being busy - I hope that my clients see this as a good thing as well!
Rebecca, it's so sad. I just don't know what to say...
Hi Phillip, Hope the team helps!
Hi Christina, Thanks! I really think that many people don't know why, that's why I wrote this. Just trying to do my job and educate! :)
Stephanie - I've heard horror stories where a client writes a PA with another agent, and they know he was working with someone else, so they act as a facilitator, and then tell their sellers information that you normally couldn't tell someone in dual agency.
I find that dual agency here in Minnesota can be a good thing, especially down the road. When someone has questions, concerns, or anything after closing, it makes everyone's life a lot easier when there is one agent to pull it all together. Also, you don't have things that can get taken out of context between agents, and you're not bashing each other.
We do a lot of dual agency up here at my office, and it's just a way of life. You make sure that clients are knowledgable about it, and do what you can. Our clients always agree to dual agency, and we have a very good reputation for being honest and ethical. Perhaps dual agency is what you make it??? Who knows!