Interview Before Hiring a Buyer Agent

It’s Monday in America, and that means thousands of people are learning they came in second on the house they tried to buy over the weekend. Rejection sucks. When the market favors the seller, as this one does, more people will feel the sting of rejection, and very few will feel the thrill of acceptance. For most of those who lost today, their next offer will meet the same fate because they don’t know why their purchase proposals are unacceptable. I believe the solution remains unknown because the person drafting the offer doesn’t give the buyer choices to enhance the terms in the seller’s eyes. 

Two in Ten Offers Are Attractive

I believe there are two assertions about Sundays that are indisputable. One, the first team to 35 points, is significantly more likely to win an NFL game. Second, regardless of the number of offers a seller has in hand on Sunday night, only one and maybe two are good enough to accept as-is. Eight or nine out of ten people are not committed to owning the house. Their offer is a hope, not a promise.

Before you commit to an agent, know their ability

Few licensees understand (well enough to suggest alternatives) the consequences of prewritten contingencies. I heard this true statement from an experienced agent:  I would never write an offer without an inspection contingency. I have to protect my buyer. REALLY? Who decides the protections that go into an offer? Who decides which contingencies are protections and which hinder the opportunity? The buyer who understands the meaning of the contingencies they have to choose from should decide. To know the purpose, the buyer is dependent on the agent’s desire to learn and teach. If you can’t count on a professional to explain the good and bad of the contingencies and offer alternatives, your offer will look a lot like the other rejected offers. 

Plan For Spring Now

The difference between an agent who will be an asset in negotiations and the anchor tied to your ankle is knowledge and ideas. Agents who have trouble explaining contingencies found in an offer are not likely to have opinions on making your offer more appealing without just increasing the price. If you are on the sidelines until spring and are not committed to a broker as your buyer agent, take time to meet with agents. Review the offer and their company addenda. Learn what the agent knows. Find out what ideas they used to give their clients an edge in competition. Find out if they say ‘never’ to options that should be yours to make. If an agent won’t give you the courtesy of respecting your ability to make wise decisions based on information, keep interviewing. 

Author: Tom Meyer, Owner-Broker, Essential Real Estate, LLC Madison, WI

The real estate transaction, disclosure, and confidentiality are the business of a Wisconsin licensee. It's in the transaction where the skill of the licensee, and their commitment to the law where the public is protected or placed at risk. Essential real estate services are specified in real estate license law. Those services are worth professional fees. Paying professional fee rates for administrative services is a choice when an alternative exists. We are that alternative. Old business model commission rates are taxing the home equity of American home sellers. Essential Real Estate LLC was created so our clients keep more of their home equity, spend less on broker fees, and receive skilled representation in negotiating purchase agreements.

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