Ask Coach Bob
I could not answer this question in my meeting with my clients yesterday—HELP!
Why should a client use one of my buyers’ agents? I am so upset with agents and how awful they treat the clients I refer them that I couldn’t think of an answer. Could you give me 5 reasons I can give to a client to use one of the agents I recommend?
-- Frustrated Loan Officer
Dear “Frustrated”:
I’m not sure there are 5 good reasons to use an agent – especially if you haven’t properly screened the agent for things like honesty & integrity, knowledge of the local market, commitment to excellent service, and the ability to use the latest technology to help the client find the right home.
With respect to the use of technology, The National Association of Realtors recently announced, for example, that the median age of homebuyers in 2007 was 39 – while the median age of Realtors was 51. So there can be a “generation gap” between agents and their clients, and that generation gap can become a problem if the client is comfortable with technology and wants the agent to use it to help in the buying or selling of a property, but the agent doesn’t know how or want to learn. This can be particularly an issue for first-time homebuyers, half of whom are between the ages of 25 and 34.
One of the things you do when you recruit Realtor partners is to screen them for these qualities of honesty & integrity, knowledge of the local market, commitment to excellent service, and the ability to use the latest technology to help the client find the right home (or sell their existing home).
I’ve often told my clients, if you wouldn’t refer your own sister to an agent, don’t refer your clients to that agent either. And be prepared to use your influence to get an agent to provide better service if your client isn’t getting it, and don’t hesitate to refer an new agent if the client feels the one you originally referred isn’t getting the job done.
Having said that, if you’re referring a client to an agent who has the qualities I’ve described here, there are some reasons why your buyer clients should use a good buyer’s agent:
1. They work for you for free – their commission is paid by the seller at closing.
2. The best houses (even in a buyer’s market) don’t stay on the market long. A good buyer’s agent will find you the best properties faster than you can, even if you’re checking the internet for homes several times a day. Agents have access to inside information that buyers don’t have access to
3. A good buyer’s agent can do a much better job than you can to “sell” your offer to the listing agent and the seller. This is what they do every day.
4. A good buyer’s agent will make sure that your offer is written properly, to protect your interests legally – for instance making sure the offer is contingent on a satisfactory home inspection.
5. There are many legal details that have to be handled properly after the contract is signed in order to make sure the closing goes smoothly and your interests are protected. A good buyer’s agent will make sure this happens.