Road Trip

I am wrapping up my week long road trip with my youngest son who is out of the Army and we are headed home! Here is a post from the past that still has relevance:

Local Realtors are Invaluable Assets

October 28th, 2016

I am meeting with new clients this weekend about selling their lovely home. The odd thing is that they just bought this home a few months ago. I do not have all the details as of yet, but I do know that my new clients bought the house site unseen and moved here from 900 miles away. They utilized one of our national consumer real estate websites to buy the home and the listing agent's office was in Seattle 160 miles away from here.

I won't opine any further on this specific case, but in general my belief is that national websites such as Zillow, Redfin, Trulia, etc. are excellent tools for people searching for homes especially when looking at far away destinations. That is where their practical benefit ends however. There is no substitute for a local pro that understands the nuances of neighborhoods and the other important issues that face homeowners in a new region. 

Once a buyer thinks they have narrowed it down to a few homes they want to see, or even offer on, a local pro should be contacted other than the listing agent. It is important not only to have a local agent that understands the local market, but also an agent unaffiliated with the seller. A listing agents greatest obligation is to the seller for which he has a signed contract with statutory language. The listing agent will pay the buyer's agent commission so the buyer is in much better shape using their own agent.

It is important to take the time to ensure you are buying the best house for you at the best price possible and with favorable terms. Buying a home and then having to sell it three months later is rarely a profitable exercise. Buyers need to be sure they have all the proper information before buying a house.

If you find a home on one of the national websites, there are usually buyer's agents listed. Sometimes there will be a preferred or premier, et al. agent. These agents have likely paid the company money for placement. There may also be a few random agents listed that have a profile on the system and list that area as their area of expertise. Be sure to visit the agent's profile before contacting them.

There is no better asset to a home buyer than a local professional looking out for the buyer's best interests, not the seller's.

Using a Buyer's Agent in a Seller's Market

Buyers can find themselves in a great amount of frustration while trying to buy a home with tight inventory like we have right now in the Metro Portland-Vancouver area. I have mentioned "cocky" sellers and listing agents before. Buyers may be tempted to go straight to a listing agent to try and get the inside deal.

Although it is possible that the listing agent may favor your offer since they stand to make a double commission. But Washington State has very strict statutes regarding agency duties and the listing agent has more than a fiduciary responsibility to the seller. They have a signed contract with the seller to represent the seller's best interests. The sellers best interests are nearly always maligned to the buyer's interests.

It is a bit challenging to represent a buyer against your own seller without someone feeling they got the short end of the deal. In the case of a listing agent the short end would almost certainly be the buyer. Personally I would be wary of any deal in which the principals or their agents participation is motivated by greed. 

Most agents are honest and will work hard to do the right thing. Buyers are fortunate in that the services of selling real estate are almost always paid by the seller. The buyer therefore can enjoy the full representation of an agent who is bound by the same statutory and fiduciary duty to the buyer as is the listing agent to the seller at no cost to the buyer. 

Right now this market is VERY hungry for clean move in ready homes. The in town move in ready homes from $225,000 to around $400,000 priced right, will sell fast and likely with multiple offers. Homes in rural or semi-rural areas with acreage from $350,000-$500,000 will see the same action. Buyers may have to offer on several homes before finally landing one. This is the nature of a seller's market. 

Buyers can also look at homes that are not so picture perfect. I am not referring to a fixer, but a house that doesn't show as well. Maybe it has a lot of clutter. Maybe the yard is overgrown. These types of houses may in fact be fabulous homes that need just a touch of a new buyers TLC. These are not as likely to see multiple offers and bid up pricing because so many people can't look past superficial cosmetics. This can be the ticket to ride to quote the Beatles, for a buyer fed up with the seller's market.

Buyers should be patient and stick to a solid buyer's agent.