Hadley Homebuyer’s Open House Adventure Continues
The sign out front catches Sally’s eye: “Hadley,” she points out excitedly, “this is the same agent we saw on the sign we passed a block over on that really expensive-looking house! And I am pretty sure she is also the one with the ads on the grocery carts! I think we should talk to her about being your agent.” “I’m not sure being on a grocery cart is much of a positive,” suggested Hadley, “but she does seem to be popular in this area so maybe we should see what she has to say.”
The front door is open, so they go inside and look for the agent. They find her in the family room with the TV turned on to the baseball game. “She doesn’t look like the photos—she seems much younger”, whispered Sally. “Excuse me”, says Hadley, “are you the listing agent?” “I am her team member.” the agent replied, “She has an open house around the corner today on that high-end home.”
“Could you tell us something about this home?” asked Hadley. “I understand it is an estate”. “Yes”, replied the younger agent. “The sellers are the children of the owner, who is deceased. They did not live in the home and do not know much about its condition or anything. So it is being sold ‘as-is’. You can’t ask for any repairs or anything. But if you don’t like this house, I can show you a nicer one that I listed last week in an area with better schools.”
“We were wondering how that worked,” spoke up Sally. “Would you be our agent?” “Yes.” said the younger agent, “In either situation I could be your agent. We would need to fill out some paperwork.”
This is a good time to pause and talk about the types of representation available to buyers:
• They can have the listing agent represent both them and the sellers. This is known as “dual agency”. That would mean the agent would get paid the full commission and her responsibilities to each side would not be the highest standard of full loyalty, but rather a reduced requirement of not doing anything “detrimental” to either party. For example, a buyer can always ask for repairs to be made to a home. The seller does not have to agree, but it is prudent in many cases to ask. So the advice this agent gave was not correct, although it may not have been “detrimental”.
• They can have the listing agent represent them on a home that is not listed by her and her standard of care would be full loyalty to them. She would usually get half the total commission. If the home is listed with her company, issues of representation become more complicated.
• They can find an exclusive buyer agent; whose duty would be the highest level and who would not under any circumstances have a conflict, as neither the agents nor the company have any listings.
Hadley decides to ask the young agent how much experience she has representing buyers. “Well, not a lot–I prefer representing sellers, but I am happy to show you houses in this area,” she replies. “I live only a block over so I really know the homes here.”
Hadley, being a polite young woman, thanks the younger agent and says that she will certainly consider that. She takes her card and Sally calls to her from the basement: “Had, come down and see this huge oil furnace! It is about the size of a small barn!” As she hurries to the basement, Hadley notices how really cold it is in the house–maybe the furnace is not working?
To avoid these issues of ‘as-is’ sales and confusing representation when buying a home, use the services of an experienced, trustworthy exclusive buyer’s agent. Sage Realty is one of the ONLY exclusive agencies in the Philadelphia metropolitan area. Even if you are buying in another market, ask us to refer you to the best EBA in that area. If you are a first-time home buyer, your fears will be eliminated. And if you have bought a home before, you will have a completely different experience. Contact Sage today.