There was a time when the primary reason many buyer agency agreements were
taken was that the buyer agency agreement created “loyalty” from the buyer.
Loyalty continues to be an important factor, but there may be a more compelling
reason to market oneself as a buyer’s agent. We are all aware of the unlimited
amount of real estate information on the Internet. This information is seen as a
threat by some agents because they worry that Internet savvy buyers will do
their homework and have nearly as much information about a particular market as
the agent. Rather than being a threat, this is a huge opportunity and perhaps
the strongest reason licensees should consider working as a buyer’s agent as
often as possible.
I consider myself an Internet savvy real estate consumer. I spend too much
time researching neighborhoods, values, etc., looking for the next great “deal.”
What I’ve learned over the past year is that all this information is completely
overwhelming and I am just as lost trying to analyze the real estate market, as
I would be if I spent those hours trying to analyze the stock market. What I
need, more than anything, is a REALTOR® to sift through the chaff and find me
the one property that is the best value given my investment objectives. In my
case my wife is a REALTOR®, and she is the one who patiently listens to my
excitement about the “great properties” I have found. Usually I am wrong and
most of the properties I “find” aren’t a good deal for any number of reasons. I
don’t know how to identify a good value out there just because I saw properties
on the Internet. The buyers you work for are looking at the same plethora of
properties and need this same kind of advice from you.
If you want to provide them this level of advice you may have to be a buyer’s
agent. When buyers come to you with 30 properties they have identified for
starters, they need a knowledgeable agent to help them understand why most of
these properties aren’t right for them. Unless a licensee is working as a
buyer’s agent, that agent can’t give the buyer advice that is contrary to the
interests of the seller. In simple terms, few buyers want to go through a
showing if the agent they are working with can’t tell them that a property is
overpriced. If you asked a buyer if he wanted the full benefit of an agent’s
advice, including advice that might discourage him from purchasing unsuitable
properties, he will struggle to figure out why the question is being asked
because the answer is so obvious. If the buyer’s answer is yes (it will be), he
wants to be a buyer/client. Not only does he want to be a buyer/client, he wants
to be a client before you show him a single property. If a buyer needs your
guidance to figure out whether a property is suitable, does he want to spend his
first day with you not being able to receive the full benefit of your advice?
Assuming you are going to start your time with the buyer showing him the
properties that seem to be a good match for him, putting off the discussion of
buyer agency really seems odd. Remember, you are not marketing buyer agency
because it will insure commissions and loyalty, you are marketing buyer agency
because it is the only way to provide the exact services that the buyer needs
most. It should be a no-brainer.
In conclusion, technology has made the process of buying a property harder,
not easier. Too much information is a bad thing if you don’t have the knowledge
and experience to put that information in context. REALTORS® have that knowledge
and experience. Market buyer agency, market the advice you can provide based on
your knowledge and experience. Giving good service is essential in real estate,
but think about what buyers really need and you may shift the focus of the
marketing you do to prospective buyers.
Rick Staff, former WRA senior staff attorney, is owner of Rick Staff
Consulting, LLC.
Published: 8/14/2006
