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Replies (5)
- shasta_steve
- Contributions:448
SoCal I sometimes see your questions as just trying to fan the flames. I know I do it too but it is really easy to kick agents in here. Some can get pretty interesting though so I will bite on this one. Now I have previously stated I will never sign a buyers purchase agreement and I stand by that statement but there is a difference here.
First off is time. A saleman, we have lots in my industry too, usually does not spend the days it takes an agent. The most important thing though is the buyers agent does not own any of the product he or she is selling. There is no way around it a car salesman works directly for who owns the car. His job is to try and get you to pay as much money as he can to keep his boss happy and to get his commission up. Salesmen in other industries are not even pretending to be on your side.
Like I have stated before I don't see any benefit to me in signing an agreement but I can see why agents would want one. I have seen it happen too where buyers, especially first time scared buyers, spend a great deal of time with someone and then run off at the last minute to another agent. It has to be frustrating. I have hired buyers agents who were idiots, my fault for hiring them, but I have also hired agents who had my back the whole way. I know I could do it myself but having someone there is nice. Not sure it is worth the several thousand dollars but it is nice.
First off is time. A saleman, we have lots in my industry too, usually does not spend the days it takes an agent. The most important thing though is the buyers agent does not own any of the product he or she is selling. There is no way around it a car salesman works directly for who owns the car. His job is to try and get you to pay as much money as he can to keep his boss happy and to get his commission up. Salesmen in other industries are not even pretending to be on your side.
Like I have stated before I don't see any benefit to me in signing an agreement but I can see why agents would want one. I have seen it happen too where buyers, especially first time scared buyers, spend a great deal of time with someone and then run off at the last minute to another agent. It has to be frustrating. I have hired buyers agents who were idiots, my fault for hiring them, but I have also hired agents who had my back the whole way. I know I could do it myself but having someone there is nice. Not sure it is worth the several thousand dollars but it is nice.
- SoCal_Engr
- Contributions:5666
Though it may not seem like it, I also find value in REAs. $30K worth of value? Likely not. $60K? Really reaching. But, I've used REA services and have been both satisfied and less-than-happy.
What's somewhat interesting to me is how REAs view themselves and their industry. Most of the sales folks I deal with don't "own" anything that they are selling. I've even had them talk down their competition, and then come back two months later representing the competition and backtracking.
An advantage for the REA is that they should be somewhat of a "free agent", almost like car sales where they can attempt to cherry pick from all the available brands/models. Maybe too simplistic, but...
As for "fanning the flames"? Not really my intent. But, why toss softballs?
What's somewhat interesting to me is how REAs view themselves and their industry. Most of the sales folks I deal with don't "own" anything that they are selling. I've even had them talk down their competition, and then come back two months later representing the competition and backtracking.
An advantage for the REA is that they should be somewhat of a "free agent", almost like car sales where they can attempt to cherry pick from all the available brands/models. Maybe too simplistic, but...
As for "fanning the flames"? Not really my intent. But, why toss softballs?
- John Stewart, "nwhome.us"
- Contributions:2166
By process of elimination, I'm guessing we aren't attorneys or doctors.
Any of us.
Any of us.
- shasta_steve
- Contributions:448
What's somewhat interesting to me is how REAs view themselves and their industry. Most of the sales folks I deal with don't "own" anything that they are selling. I've even had them talk down their competition, and then come back two months later representing the competition and backtracking.
Well by own I mean work directly for the company that owns the product. If they don't sell it their employer will find someone else. As far as bad mouthing the competition that is pretty normal for many of the sales people I deal with. It is not uncommon for them to end up working later for the same company that they were bad mouthing earlier as it is a pretty small industry. I have seen it happen all the time with car dealers. They often walk right across the street to another dealer and go to work. Chances are they were bad mouthing that same make of cars before they did it and they are for sure going to be bad mouthing the make of cars they used to sell.
An advantage for the REA is that they should be somewhat of a "free agent", almost like car sales where they can attempt to cherry pick from all the available brands/models. Maybe too simplistic, but...
I think that is exactly the business model that the buyers agent is going for. We can argue if it is realistic but they are way more likely to be on your side than any car dealer ever could. For a buyers agent if a house fall through there is a chance that you will just buy another one. For a car dealer it is much less likely. Also a car dealer may have many models but chances are he has very few brands he can sell you. A car dealer has to sell one of "his" cars to make any money.
Well by own I mean work directly for the company that owns the product. If they don't sell it their employer will find someone else. As far as bad mouthing the competition that is pretty normal for many of the sales people I deal with. It is not uncommon for them to end up working later for the same company that they were bad mouthing earlier as it is a pretty small industry. I have seen it happen all the time with car dealers. They often walk right across the street to another dealer and go to work. Chances are they were bad mouthing that same make of cars before they did it and they are for sure going to be bad mouthing the make of cars they used to sell.
An advantage for the REA is that they should be somewhat of a "free agent", almost like car sales where they can attempt to cherry pick from all the available brands/models. Maybe too simplistic, but...
I think that is exactly the business model that the buyers agent is going for. We can argue if it is realistic but they are way more likely to be on your side than any car dealer ever could. For a buyers agent if a house fall through there is a chance that you will just buy another one. For a car dealer it is much less likely. Also a car dealer may have many models but chances are he has very few brands he can sell you. A car dealer has to sell one of "his" cars to make any money.
- SoCal_Engr
- Contributions:5666
"We can argue if it is realistic but they are way more likely to be on your side than any car dealer ever could. For a buyers agent if a house fall through there is a chance that you will just buy another one."
Agree. Which is why I don't get (or, at least, don't agree with) the emphasis on exclusivity agreements. A competent buy-side REA should have the entire market to cherry pick, subject to the buyer's constraints. It's not like "if they don't buy one of these 2 houses, I'm screwed."
A part of me gets the "don't want to put in X weeks of work and have the buyer walk off to another REA". But, if the REA was doing a good job of selecting/showing houses, then most of the buyer's "likes" should be covered by procuring cause. Besides, if there is any honesty/ethics in the industry, then there should not be a huge concern about other REAs picking off existing clients.
I guess, for my part, the exclusivity demands are sending a mixed message. "I'm really good and will find the house to meet your needs, and the industry works no a strict code of ethics. However, I'm really worried that you will get antsy and walk when I can't find the house, or one of my fellow REAs will try to cut me out."
@nwhomes...
That may not necessarily be a bad thing. Some of those folks are real pieces of work. :-)
Agree. Which is why I don't get (or, at least, don't agree with) the emphasis on exclusivity agreements. A competent buy-side REA should have the entire market to cherry pick, subject to the buyer's constraints. It's not like "if they don't buy one of these 2 houses, I'm screwed."
A part of me gets the "don't want to put in X weeks of work and have the buyer walk off to another REA". But, if the REA was doing a good job of selecting/showing houses, then most of the buyer's "likes" should be covered by procuring cause. Besides, if there is any honesty/ethics in the industry, then there should not be a huge concern about other REAs picking off existing clients.
I guess, for my part, the exclusivity demands are sending a mixed message. "I'm really good and will find the house to meet your needs, and the industry works no a strict code of ethics. However, I'm really worried that you will get antsy and walk when I can't find the house, or one of my fellow REAs will try to cut me out."
@nwhomes...
That may not necessarily be a bad thing. Some of those folks are real pieces of work. :-)
Just a whacky question...
When I go car shopping, I do some online research and then hit a dealership. After doing some dancing with the sales person, if we can't work out a deal - no payday. I walk down the street and buy the same car from the next sales person.
And, many of the sales persons (especially the car sales) try to play the "I've spent time working with you on the deal, show some loyalty/respect/yada-yada". Bottom line though, is not a single one of them starts with a "First, since I'm going to be investing my precious time in finding you X, I need you to sign this exclusive agreement."
So, what makes RE different?
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