Welcome Home my Friends!

Real Estate news comes in all shapes and sizes these days and it can be overwhelming for all of us Realtors as sometimes it seems that everything is looking up and then other reports make it sound very depressing. There is advice, commentary, statistics, editorials, critics, graphs and charts; I am sure you can see my point.  I can only imagine how the consumer must feel about who to trust, where to begin or end and how to go about weeding out the good and maybe not so good information.

Many informative pieces written give the consumer the right tools and, in my opinion, most times the advice given is right on the mark. However, I have come across many articles lately that fall short and today I would like to write about just one that recently came to my email from a local lender I have supported for many years and do business with personally.

Local banks like to do full service banking and that is an awesome concept that I support fully~one stop service where everyone knows your name and treats you with old fashioned respect and customer care.  I refer business to many local lenders as they know our marketplace, they know the real estate community, they help us problem solve and not just throw up their hands and leave us hanging (to name a few things) AND they usually do it with a smile!

Today’s newsletter focused on a variety of subjects, but the article that caught my eye was Things Every First-Time Homebuyer Should Know so, of course, I had to read to see what I could share with my clients.  The article topics are great, Look for Information, Save for a Downpayment, Discover How Much You Can Afford, Choose a Mortgage Product, Research the Area, Hire a Real Estate Agent and Have the House Insepcted…that’s when I was disappointed.  I am dismayed that is how this local institution feels about the valuable service we agents offer our clients.  Below are the paragraphs from the newsletter:

“Hire a Real Estate Agent
Get referrals from friends, relatives, and co-workers, and then interview several agents. You want an agent who’s familiar with the neighborhoods you’re interested in. Listen to your agent, but make your own decision. An agent’s job is to know how much properties are worth, facilitate the sale process, and bring your offer to the seller’s agent. Unless you have chosen a buyer’s agent compensated directly by you, the agents on both sides of the sale work for and are compensated by the seller. They earn a commission based on a percentage of the sale price. The more you pay, the more money they get. Consider what they say within that context.

Have the House Inspected
Hire a full-time, professional home inspector. Again, referrals from friends, relatives, and co-workers are a good place to start. The Better Business Bureau can also provide information. Be wary of recommendations from your real estate agent. It’s in the agent’s interest that the inspector not find problems that would block the sale.”

I definately agree with get referrals for all aspects of the home buying process from friends, family, co-workers AND your real estate agent as they are a valuable resource and a wealth of knowledge in the real estate marketplace.  And, of course, the buyers and sellers ALWAYS make the final decision based on their comfort level and trust in that professional.

Just because a buyer does not directly compensate a Realtor does NOT mean that both agents are working for the seller.  Yes, the SELLING agent that represents the buyer is compensated by the LISTING agent that represents the seller; it is called cooperating compensation.  I, for one, do not assist a buyer or seller in the negotiation with the thought process that the higher the sale price, the more I will be paid.  How ethical would that be of any Realtor and how does that help my clients trust me?  Each agent should negotiate on their clients behalf to achieve a solid transaction for all parties~regardless of compensation. We also have a Mandatory Licensee Disclosure that states a Realtor’s relationship with the consumer~seller, buyer, facilitator and I explain this fully and exactly how, where, why and what I will do for my clients.

Again, I fully agree with hiring a professional home inspector as this is the largest purchase that most consumers will make in their lifetime and they should know the good, the bad and the ugly of the home they are considering and better to know upfront than after the home is purchased and they have to complete extensive and expensive repairs they were not aware of.  I am very disheartened that this bank feels that consumers should be wary of their Realtors recommendation because “it is in the agent’s interest that the inspector not find problems that may block a sale.” Ethics are very important to all the agents I know and support and I am certain my colleagues will be and should be outraged about this comment.  We, meaning both agents, may hold our breath during the inspection, but we want the home inspector to find all the issues with a property so that our clients are aware of them and can resolve them right away.

In closing, I will continue to work hard for both my buyers and my sellers and also with the real estate agents on the other side of the transaction to ensure a smooth transaction for all involved.  I will also continue to refer my clients to all the knowlegdgable professionals that make up the team that will get them to the closing table where their dream will be achieved~and after all, isn’t that what makes our job rewarding~YES!