Hiring The Right Agent

Phoenix Real Estate Agent  Nancy LaswickHiring the right agent to help you buy or sell a home is the most important step towards a successful outcome.

One of traits that the right agent will have is experience with your local market.

These days it seems that everyone knows at least one residential real estate agent and many times that agent may be a friend or even a relative.

The following real life story illustrates what can happen when you choose the wrong agent for what seems to be the right reason.

I had a listing in an historical district in downtown Phoenix. A small two bedroom single bath bungalow originally built in the 30’s with a remodeled interior.

Homes in this district don’t come on the market very often and the neighborhood is popular with anyone interested in a restored piece of Phoenix history and is also popular with young professionals working in downtown Phoenix.

Knowing the property would sell quickly the owner wanted a Saturday and Sunday Open House followed by a three day window to accept offers. The owner would review offers on the Thursday following the open house.

On Monday I received a call from an agent who said he represented the sellers next door neighbors. I had met this couple at the Open House, they came both days and ask more than once what I thought the property would sell for, “full price or more”, was my answer. They didn’t seem convinced.

I thought they were wondering what their home might sell for, it didn’t occur to me that they were interested in buying the property. Their agent ask if he could meet with me, at the property, before they made an offer. I was a bit surprised by the request but agreed to meet him.

Monday afternoon we met and his first statement was ” I understand you believe this property will sell for full price or more”. I said that I did. “I don’t know how you came up with that price but I think you’ve priced it a least 10% higher than where it will sell.

I told him that everyone’s entitled to their opinion but the comps clearly showed that the property is priced to sell. I also told him that I expected to receive several, full price, all cash offers and that if his clients were serious they needed to act accordingly.

Before I arrived back at the office I received a call from an agent representing a buyer who had been the first person to view the property on Saturday. The offer was full price, all cash.

There was another full price, all cash, offer on Tuesday and an offer from the neighbors at 10% below list price with a 25% down payment and the standard contingencies inspection, appraisal, etc.

The seller decided to accept the first contract, it was super clean: as is, full price and all cash. I called the other agents to let them know that the seller had accepted an offer.

The very next day I received a phone call from the next door neighbor she asked if she could meet with me to talk about their offer. I explained that the seller had already accepted another offer and that meeting with her would be inappropriate.

She told me that she had be diagnosed as having stage four lung cancer and wasn’t expected to live out the year. Over the past few years she had been buying rental properties in the area to leave to her children upon her death and she felt her neighbors house would make a great rental.

I was surprised that anyone who had been purchasing properties in the area would make a lower than market value offer and told her so. She explained that she had used another agent for the previous purchases but had decided to use her nephew for this one. He was a new agent, in fact this would have been his second transaction, and she wanted to help him out.

She asked if she was to match or slightly exceed the accepted offer would the seller accept her offer. I explained that we had a legal contract between the buyer and seller and that the time for making offers had passed.

I felt bad for this woman, trying to help her nephew had backfired and cost her a property. It’s great to try and help a friend or family member begin their real estate career but buying or selling a home is first and foremost a business transaction and should be treated accordingly.

For many buyers it’s the largest single purchase they will make in their lifetime. For new or part time real estate investors it’s a serious business that requires experience and a great deal of focused attention in order to generate consistent profits.

What is the moral of this story? Hire a full-time professional agent with a proven track record of success”. If you do want to help out your family member or friend that’s new to the business of real estate, insist that they work closely with an experienced agent, preferrably an agent who mentors other agents at their brokerage. The friend or relative will end up making less commission but probably won’t make a rookie mistake that you end up paying for.

 

If you are thinking of buying or selling a home in the Phoenix Metro Area

I offer a Free Personalized Market Report.

As an informed buyer or seller you’ll make better decisions.

E-mail Nancy@NancyLaswick.com or call (602) 793-1627

 

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