A SMART Home Buyer

A SMART Home Buyer

A Smart home buyer doesn't have anything to do with IQ.  It does have a lot to do with common sense.  There are a lot of opinions out there on what NOT to do as well as opinions of what to do. A smart home buyer uses their common sense to determine what best serves their needs. 

Years ago,  back in the 1950s, companies that were looking to purchase property decided what they needed was a Real Estate professional that had the company's and only the company's best interest as their goal.  So companies began hiring their own real estate professionals.  They would put this individual on the companies payroll with the single task of finding the properties that met the company's needs, researching them thoroughly and negotiating the very best purchase.  The thinking was these real estate buyer specialists would save the company more then enough money to pay their salary.  Companies wanted an experienced agent that had enough sales experience to understand the seller's perspective but not the driving influence of a sales organization. This person would not only be the companies employee but, would also have the legal duties and responsibilities as their AGENT.

Today, the vast majority of real estate brokerages are sales organizations.  They contract with property owners to sell their property.  Their loyalty is to the seller as it should be, with the primary objective of selling the property for the highest possible price. 

So, common sense tells us we should look for one of these buyer specialists to work for us.  Today these specialists are called "Exclusive Buyer Agents". They do NOT work in your typical "sales orientated" Brokerage, they work in Buyer Only Brokerages or as Buyer Brokers. They never have listings they must sell or the sales obligations Traditional Brokerages have that go along with listings.  Their loyalty and commitment is to the buyer only.  Perhaps the best thing about getting your own buyer agent is that there is no payroll,  there is typically no cost at all to buyers.

So, common sense tells us. . . . . . just,  Get Your Own Buyer Agent.

Real Estate Teams - Do Buyers want to Play?

Real Estate Teams are growing in popularity and size. It used to be a Team was two maybe three people; today some Teams can have 30 or more members! Many of these Teams may be "Top Producers", meaning they close a lot of deals - great for real estate companies!

The book The Millionaire Real Estate Agent, by Keller Williams founder Gary Keller and co-authors Dave Jenks and Jay Papasan has been instrumental in promoting the Real Estate Team concept. A "Team" typically divides it's members; some work with Sellers, some with Buyers. The Team usually works out of a larger real estate office/company (Brokerage). The key is cordinating all the different members of the Team to maximize the number of closed deals so that the Team makes enough money to support all it's members. Closing the deal, making the sale is the driving force in this form of Sales Organization.

The foundation of the Team is based on the typical Real Estate model of "Dual Agency". Dual agency is where the same real estate Brokerage represents both Buyers and Sellers. Part of the Team focuses on getting listings contracts - contracts to sell property for a property owner. These contracts create an obligation for the Brokerage as well as the Team to market, promote, display the Seller's property in the most favorable light and sell for the highest price possible. Another part of the Team works with Buyers.

From a Buyer's perspective how does this Team concept benefit the Buyer? The Buyer's main objective is to find the best property for the lowest price. A Team member will want to show and sell one of the Team's property listings - first. Buyers often complain that Team/Brokerage properties get "talked up" while other properties get "talked down" or are just not shown at all. Why? Because by selling a property the Team has listed the Team could double it's commission.

Can you imagine your Buyer Agent Team member "fighting" fellow Team mates to get the Buyer the best deal?

While many professions do have team concepts: surgeons, contractors, sports, etc.; these team members typically do not serve clients that have opposing objectives.