Right at the end of the radio-show video, I said that sellers should hire a listing agent who also represents buyers – my suggestion was a 50/50 split. The host questioned the idea, and at first glance it would seem to make sense for a seller to hire a seller specialist.
Let’s review the reasons why my idea is worth considering. Throughout the process, the listing agent’s job is the represent the sellers’ best interests – no question there. Here’s my point:
A listing agent who has empathy for what buyers are experiencing will better represent the sellers’ best interest.
Here are examples of how listing agents who don’t work with buyers can cost their sellers:
Having to grind out a couple of extra bucks from the buyer. Recently I representing a buyer who was trying to purchase a home from the kids who inherited it. The parents had bought it in the 1970s, so there was close to a million dollars in equity. After a longer-than-necessary negotiation, the last volley from the sellers was to punk us for an extra $5,000 on price. There was no justification for it, and while irritating, somebody had to be the better person. My buyer reluctantly agreed to pay the higher price, but it didn’t sit well. The minute we found one thing wrong with the house, my buyer cancelled without discussion – and I didn’t mind. We don’t know if it was the sellers or agent who insisted on the extra $5,000, but if it was the sellers then a listing agent who had empathy for buyers could have counseled them about the hazards.
Listing agents who also work with buyers are actively looking to find their own buyers, instead of waiting for other agents to do the work.
Agents who work with buyers have seen the comps, inside and out. They have better knowledge about why a comp sold for the price it did, especially if it was extraordinarily high or low.
Agents who only do listings don’t hear the objections buyers have about defects in general, and won’t price them accurately.
The more agents do listings only, the more arrogant they become. They will only sell their listings on their terms, and if a buyer doesn’t like it, then too bad – no deal. Because they have several other listings, if one doesn’t sell this week, it won’t change their lifestyle. In a hot market, they get away with it. But not every market will be hot forever.
Most listing agents don’t appreciate buyers, and what they have been through. Instead, they think their job is to work them over. But you still have to make it to the finish line, and buyers who feel like they’ve been mistreated will demand a discount – or find a reason to cancel.
The big agent teams are the hardest to figure, because they will show buyer sales on their Zillow page. But usually the team leader isn’t doing the heavy lifting – they have underlings who handle the buyer sales. The ‘neighborhood specialists’ who mail you every month? All you know is that they are excellent at licking stamps – many agents get in the way of a successful sale. Conduct a thorough investigation of the agents you are considering – at least check their Zillow page!
Why does it matter?
If your local market hits a flat spot, and you only get one offer – you want an agent who treats the other side right, so the deal sticks.
What’s the chance of that? Take a look at my 1-minute wrap-up yesterday:
A Chevy, a Budweiser, and a big belt buckle – what else do you need!
I didn’t take notice of the Eagles until Joe Walsh joined in 1975. We had Joe’s 8-tracks and thought he was a great rocker, but wondered how he would fit in a country-ballad band. Their next album, Hotel California, was the answer. Donna and I did see the Eagles at the Murph in 1994, with Big Head Todd and the Monsters as the opening act – were you there?
Here is Glenn playing lead guitar at the California Jam in 1974, with Jackson Browne filling in for Don Felder (whose wife was having a baby).
Did you know that in the later years, they cut back the lyrics of Tequila Sunrise? Here is the original version, with extra lyrics starting at 2:25-min mark:
Bubbleinfo.com was named one of the Top 87 real estate blogs in the country (who knew there were 87?). For those folks looking for real estate data outside of San Diego County, here is the complete list of bloggers scattered from coast to coast:
On his blog he is known as “Jim the Realtor” and Jim covers the San Diego real estate market. I love to follow the financial markets and Jim puts a lot of that into his blog. You can find everything from economics to local activities. If you love numbers, graphs and the occasional video this is a good spot for you.
I’ll be on Lunch ‘N’ Learn Radio tomorrow, January 20th from noon to 1pm on 1700 AM. I’m sharing the bill with Chris Ward, who is running for San Diego City Council this year.
If you can tune in to 1700 AM, great, but if not, we should get some video of it to include on the blog. We will firm up the topics later today, but one already on the list is how to select a realtor.
Anyone who has looked at homes lately can attest to the surprising conditions in which people live. The lack of maintenance transcends all price points too.
But it’s nothing money won’t fix.
Buyers should surrender early on……and expect to spend at least $25,000 to $50,000 on any house they buy. It’s easier than trying to find the perfect house that doesn’t need anything.
But looking at houses then turns into a job of making lists of the repairs required. Is there a way to short-cut that process, and just use one simple gauge to know if the house could be a money pit?
When I enter a house, I still walk straight to the backyard first. It is there that you will find the items that are hard or impossible to fix; yard too small, road noise, neighbors looking in, over-sized pools, etc.
Once we’re past that test, and everyone is getting comfortable with the interior layout, I make my way to the place where you can find the most clues about the seller’s pride of ownership.
The Master Bath – a place where the sellers spend time every day. The most extreme conditions exist too – high use of hot and cold water, steam and mold conditions, multiple plumbing functions, venting, several appliances in use, laundry processing, etc. There’s a lot of action going on in the master bath!
With all the action, is somebody keeping up with repairs?
If any room is going to be well-maintained, it is the master bath. It’s not that big, and the moving parts are simple – a towel rack, a toilet-paper roller, lighting, fan, grout, window, sinks – easy stuff.
Plus, every guy wants to keep his wife happy – so if he is going to fix anything, it will be here.
No need to get into any personal items – just checking the hardware:
Are the towel racks secure?
Toilet-paper roller intact?
Drywall outside the shower or tub wet or damaged?
Adequate electrical outlets?
Toilet secured tightly to floor?
Toilet works properly?
Sinks drain normally? (two sinks are a must)
Adequate water pressure at sinks and shower?
Fan is quiet? Window works well?
Any sign of biological discoloration?
Baseboards are dry and tight?
Mirrors look good?
Ample lighting?
Mineral deposits on glass doors?
Shampoo bottles have a home?
Solid coat of semi-gloss paint?
Crisply-applied caulk, especially around the shower faucet?
Solid and tight grout lines?
Door that locks easily?
Is the floor of the sink cabinet dry?
If you are in a hurry or tend to get caught up in the excitement of looking at houses, then just concentrate on what you see in the master bath.
If you check off every item above, then the rest of the house should be in good shape too. But if the sellers aren’t maintaining this room that has complex features but simple fixes – especially when on the market – then they probably haven’t done much to keep up the rest of the house either.
The marketplace is full of lookers already, spurred by a dip in mortgage rates. The conforming 30-year fixed rate is down to 3.84%, which is lower than before the Fed made its move.
Glenn Frey enjoyed a dream of baseball lovers everywhere. Rest in Peace:
The number of NSDCC houses for sale priced under $800,000 is down to fifty (50), which is the lowest amount since we started counting just over two years ago. There should be quite a scramble for the quality homes available, and the definition of quality is probably deteriorating by the minute!
Click on the link below for the complete NSDCC active-inventory data:
