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I was just thinking...

Working With Buyers and Sellers - A Balancing Act

By: Mike Farmer
Friday, October 26, 2007 7:43 AM

Looking back, it is fortunate I started my real estate career as an exclusive buyer agent. It prepared me for today's market and this week has been indicative of the changes I see and experience in real estate.

Yesterday I picked up a buyer client who is a lawyer buying a home for retirement. He called with the specific request to be represented on the buyer side. He found out about buyer agency by reading one of my blog posts and it made sense to him given his present needs. He has researched the market to the limits of his ability and the limits of his time available to research. What I will be doing for him is analyzing the information, negotiating and managing the process to closing. We had a pleasant, straightforward conversation based on services needed and services offered, based on a reasonable compensation for my services.

Earlier in the week I wrote a contract for a young couple buying their first home. They had no idea what they were doing. I carried them from the very beginning and taught them the process step by step. They were so excited and confident by the time we wrote the contract it renewed my passion for this business and reminded my of the exclusive buyer agent days. They had needs that called for representation, the needs were met and everybody won.

I had a listing appointment last Sunday to list a home in a gated community. It was actually one of my agents' prospective listing but she wanted me to go along. The seller was unrealistic about the asking price and I told her. I counseled the agent when we left the home about getting listings just to have a listing, that she really needs to consider whether she wants an overpriced listing. When I described all she has to do to manage and market the listing then asked her if she thought it would sell at that price or just sit their becoming market-worn, her excitement about a paper-listing faded.

The point is that meeting legitimate needs is the pushing force in this business, whether it is representing buyers or turning down sellers to meet the needs of reality and business.

The listing side has been so strong for so long, it will take some time for agents to adjust to the holistic approach of delivering real estate services to meet all needs, from consultation to buyer agency to realistic listing strategies. I am still struggling from my recent addiction to listings, as I hd fallen into the "list to stay" mindset.

I have listed less homes so far this year, but my financial numbers have increased. Buyer representation, information processing and analysis, consultation, smart listing strategies -- these I think are the concentration areas in today's market. 

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Comments

Candice A Donofrio
Member Since '07

Candice A Donofrio said:

New agents alert! Read this post and keep it for frequent review.

Mikey--was it surprising to you that an ATTORNEY would be just learning about buyer representation via your post?

Still, I don't think ANYTHING is as important in our business as understanding agency, representation, and fiduciary responsibility. And I don't believe anything in our business is more misunderstood.

October 26, 2007 7:42 AM
Mike Farmer
Member Since '03

Mike Farmer said:

It was a little surprising, but then he specializes in Social Security cases and I can see where he just hasn't followed real estate trends and laws.

And he may have had a cursory knowledge of representation but just didn't understand it as personally useful. We didn't go into it, he just said he read the blog post and it dawned on him this is what he needed.

October 26, 2007 8:28 AM
Candice A Donofrio
Member Since '07

Candice A Donofrio said:

Well, it's all good but it does hammer home the point that until they know, people don't realize how valuable representation is.

Then there are the sad ones who know because they got burned.

October 26, 2007 8:46 AM
Mike Farmer
Member Since '03

Mike Farmer said:

"Well, it's all good"

- Candice

Whew!

October 26, 2007 10:54 AM

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Mike Farmer
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Mike Farmer
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