Southern New Hampshire Real Estate and Short Sales: Do Real Estate Agents Really Eat Their Young?

Do Real Estate Agents Really Eat Their Young?

I recently received a phone call from a buyer looking for information on a property here in Southern New Hampshire. Our conversation was pretty short once I informed the buyer that I was not the listing agent (the property in question was actually not even listed by anyone in my office).   This buyer only wanted to speak to "The Listing Agent".  This happens with a fair amount of frequency since many buyers out there seem to be under the impression that dealing directly with the listing agent will give them an advantage over any other buyer and allow them to purchase the property for "less". 

This apparently grows out of the school of thought that since Real Estate Agents are, at best, one step above Langur Monkeys on the food chain and most probably eat their own young; throwing out all legal and ethical obligations to his/her client, if it means more money in their pocket, would present no problem at all. Will working with the listing agent give you an advantage

While I am sure there are some less than ethical agents out there that would do that (every profession has them), most agents that I've run across will not; and for many reasons.  So let's take a minute or two here and look at why dealing with the listing agent directly is probably not going to give the buyer an unfair advantage over everyone else.

When an agent enters into a contract to list a property, they are agreeing to a set of LEGAL obligations, one of which is to put the best interest of the client ahead of anyone else's interest, including their own.  They have an obligation to obtain the best price and terms for their client by fully exposing the property to the market.  This means putting the property into MLS and cooperating with other agents who bring the buyer.  So, on any given day there could be contracts coming in from any number of different agents on any given property.  The listing agent is LEGALLY obligated to present them all.

If it were discovered that a listing agent was giving unfair advantage to a particular contract because he/she would make more money...well, the doodoo would hit the proverbial fan.  The agent would most assuredly lose that listing and any other listings from that client (if we are talking about an agent that does heavy REO listing, the loss of a single bank client can mean a huge loss in revenue).  The agent could, and probably would, lose their real estate license. 

Finally, the agent is now potentially open to lawsuits from either their wronged client or a buyer who feels they've been wronged because their contract was held back or not properly presented.  All in all, it would be pretty foolish and short sighted of a listing agent to indulge in any hanky panky with a buyer who wants to buy one of their listings.

Does this mean you shouldn't work with a listing agent?  No, I'm not saying that.  Some agents work with both buyers and sellers and will have the time to work with you and, although they will not give you an unfair advantage, they will certainly treat you fairly.  You must understand, however, that in the instance where you are attempting to buy their listing the agent can, at best, offer you partial representation as they already have a legal obligation to the seller.

The agents that list a large amount of foreclosures probably will not have time to work with you.  Listing and maintaining their foreclosure inventory is their full time job.  They will just refer any buyers to other agents in their office.

So, what should you, as a buyer, do?  Find a knowledgeable agent that you like, that you trust, that you get a good vibe from and work with that agent.  He/she will have access to the MLS and will know when new properties come on the market that seem to meet your criteria. 

 A knowledgeable agent will help you find a trustworthy and reliable lender to get your preapproval through (a critical first step), will help you to educate yourself as to what your dollar will buy in your market area, will help you understand the ins, outs and potential pitfalls of buying a foreclosure or a short sale and will review the standard form Purchase and Sale with you and help you understand what you are really agreeing to aside from price.  They will also review the likely Addenda you will have to sign (particularly in the case of a foreclosure or short sale),  and will walk you through the entire process from offer through closing. 

This is a much more efficient way to find the best deal "for you" than running willy nilly from listing agent to listing agent.

For information about, and assistance with, purchasing foreclosures, short sales or (oh happy days!) non-distressed properties, contact me at 603-490-5344.

P.S.  Although I have met a few frightening agents in my years in real estate, I am happy to say I have never met one who actually eats their own young.

 

Comment balloon 15 commentsJoy Baker • February 02 2015 06:54PM

Comments

I like your monkey juggling money!  May I re-use that image?

Posted by Michael McGlynn -Buyers Like Mike!, Buyers Like Mike!....Find Out Why! (Re/Max The Producers) almost 4 years ago

I got the graphic from i-clipart.  You pay a nominal fee per year and they have a ton of great, royalty free, graphics.  I don't mind if you use the graphic.  I don't know if they will.

Posted by Joy Baker, So NH RE & Short Sale Specialist (RE/MAX Insight) almost 4 years ago

Second your comment about iclipart, they have some good stuff.  Excellent post outlining the reasons buyers may be better served by using an agent who is dedicated to the buyers' best interests. 

Posted by Susan Haughton, Susan & Mindy Team...Honesty. Integrity. Results. (Long and Foster REALTORS (703) 470-4545) almost 4 years ago

Thanks, Susan.  As we all know, many buyers don't really understand how it all works.

Posted by Joy Baker, So NH RE & Short Sale Specialist (RE/MAX Insight) almost 4 years ago

Dual agency is a hot button issue for a lot of folks here. It can be dicey but all real estate agents are bound by laws and regulations. Some can choose to not follow them but most will. It is still far better for a buyer to have their own representation working exclusively for their best interests. 

Posted by Nicole Doty - Gilbert Real Estate Expert, Broker/Owner of Zion Realty ZionRealtyAZ.com (Zion Realty) almost 4 years ago

Hi Nicole~Thanks for stopping by.  Dual Agency is fine as long as all parties understand, and agree to, the limitations.

Posted by Joy Baker, So NH RE & Short Sale Specialist (RE/MAX Insight) almost 4 years ago

Unfortunately a lot of buyers don't realize that the listing commission is the listing commission whether there is a buyer's agent or not.  It's always better to have your own representation, in court and in real estate!

Posted by Jenna Dixon, Empowers You With a Better Real Estate Experience (DRA Homes | Cobb County Real Estate ) almost 4 years ago

It is unfortunate, Jenna. 

Posted by Joy Baker, So NH RE & Short Sale Specialist (RE/MAX Insight) almost 4 years ago

I don't know why buyers do that.  If they think they can work a "deal out" with the listing agent, and they find a listing agent that will work said deal . . . Holy doodoo Batman!!  

Posted by Carla Muss-Jacobs, RETIRED (RETIRED / State License is Inactive) almost 4 years ago

I always love it when I get a call "we want to work with the listing agent, they would know the most about the property".  LOL   Want to bet?

Posted by Rob D. Shepherd, Principal Broker ABR, GRI (Windermere/lane county) almost 4 years ago

Holy DooDooBatman is right Carla!

Posted by Joy Baker, So NH RE & Short Sale Specialist (RE/MAX Insight) almost 4 years ago

True dat, Rob.  Especially if it's a foreclosure.  There's a possibility the listing agent has never even set foot on the property.

Posted by Joy Baker, So NH RE & Short Sale Specialist (RE/MAX Insight) almost 4 years ago

Joy: I wish buyers would understand that listing agents work for the seller...it is not in a buyers best interest to go that route!

Posted by Anita Clark, Realtor - Homes for Sale in Warner Robins GA (ColdwellBanker SSK Realtors ~ 478.960.8055) almost 4 years ago

Unfortunately, I think a lot of buyers still think we're glorified door openers, Anita.  Since they're operating at a level of unconscious incompetence and, therefore, don't even know what they don't know, they are unaware of the true importance of having an "agent" represent them.

Posted by Joy Baker, So NH RE & Short Sale Specialist (RE/MAX Insight) almost 4 years ago

This is a great title:) 

It is funny that with so much information online, our clients still believe in ''better deals'' and opportunities working with a dual agent.

Posted by Inna Ivchenko, Realtor® • Green • GRI • HAFA • PSC Calabasas CA (Barcode Properties) over 2 years ago

Participate