Tag Archives: exclusive buyer agency

Bait and Switch Tactics in Real Estate: Four Things Every Buyer Should Know.

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I have seen many listing agents start out listing properties at below market value and then use the resulting flurry of buyer interest to spark bidding wars.

While this practice benefits the seller, and the listing agent would not be doing their job if they did not try to get the highest price possible for their sellers, buyers need to remember that this strategy only works when more than one buyer takes the bait.

Here are 4 things buyers should bear in mind about bait-and-switch tactics in real estate:

1. Remember, demand creates value, which increases prices. The opposite is also true. When demand goes down, so do prices.
By engaging in bidding wars, you are driving prices up.

2. If you want to find a truly great deal, then you most certainly do not want to render yourself a tool for sparking a bidding war.

Instead, find out the motivation of the seller. If seller or their agent appears evasive, take note, give them the benefit of the doubt once, and then move on if it appears that you cannot get straight answers. This is a red flag.

3. If you engage in the game of bait-and-switch, then be prepared to waste some time.

It is no wonder many investors prefer to look at unlisted properties, and save listed properties as a last resort.

4. Wise investors avoid bait-and-switch pricing games. They realize that there are too many good deals out there to allow themselves to be used as leverage in the ploy to get the highest price possible.

Smart investors do not get emotionally attached to properties. Emotions are the hooks that make pricing games work so well. Eliminate emotions from the equation and pricing games are no longer as effective.

Real Estate Market is Coming Up Roses but Buyers Should Beware of Thorns

NAEBA just released its latest press release regarding buyer agency and the confusion that occurs when traditional real estate agents call themselves exclusive buyer agents when, in fact, they are not because their companies also represent sellers:

Here’s an excerpt from the release:

“We believe it is important that home buyers understand their options so they will make the best choice when selecting an agent,” commented Benjamin Clark, 2010 President of NAEBA. “It is our mission to educate buyers on the advantages of using Exclusive Buyer Agencies and we want buyers to have that information before they sign a binding agreement with a real estate brokerage.”

A “buyer‘s agent” is not always an Exclusive Buyer Agent (EBA). Agencies may have singular relationships, representing buyers or sellers only or they can be a dual agent that represents both sellers and buyers at the same time. Within a dual agency brokerage, there may be “buyer agents” but this differs from NAEBA (http://www.naeba.org) member companies where both company and agents exclusively represent buyers and never take listings. In fact dual agents and dual agency companies may represent buyer and seller in the same transaction, with written consent.

Read full release: Real Estate Market is Coming Up Roses but Buyers Should Beware of Thorns

Thoughts from a Seattle Exclusive Buyers Agent (EBA): The High Cost of Low Trust

For the past six months, I have been reading a lot about the importance of trust and the profound affect it has on daily life–personally and professionally.

In one article featured on StephenCovey.com, it explains how low trust “has a huge tax associated with it." Some of the main compelling points in the article include that trust is very important in business, and that one cannot conduct business effectively without mutual trust. In fact, the article asserts that trust is vital:

“There are just so many elements to the simplest transaction that require trust. But we are like fish that discover water last and are sometimes unaware of those implicit elements. Trust is the lifeblood of all relationships, of all transactions, and is so foundational and fundamental to everything in life.” (stephencovey.com)

I discovered that I prefer working in an environment where there is genuine trust, mutual respect, and a collaborative team spirit. This also extends to personal life and relationships. With this kind of synergy, people can build meaningful connections and bring the experience of life to a completely new level. Without it, distrust, adversarial interactions, and the speed of accomplishing goals dramatically decreases to the detriment of all involved.

For real estate buyers, working within a culture of high trust can make the difference between working with what Robert Hahn of Inman News calls a "House Hawker," or a "Trusted Advisor." It means the difference between working with a human door opener and a dedicated real estate advocate.

Real estate buyers working with a highly trustworthy agent will benefit greatly from the resulting synergy that develops through dynamic collaboration. Good things can happen faster. When combined with a highly trustworthy mortgage broker, the result is a profoundly effective team and support system for real estate buyers. Such teams can make excellent progress and realize outstanding results over and above what buyers could achieve on their own or in an environment where everyone is in it for himself or herself.

It takes high trust, active listening, mutual respect and understanding, as well as open communication and being receptive to new ideas to realize unparallel results. This is the vision I have for my life personally and in business. I aspire to bringing out the best in others and in every situation. It means being accountable, responsible, caring, while adding value to the lives of others. It also means focusing on relationship building and mutually beneficial partnerships based in the spirit of good character, hard work, and goodwill.

With awareness comes the truth, and with the truth, the right thing to do becomes clear. Trust in ANY relationship whether client, referral partner, friend, or family member, is essential to the health and happiness of the human experience. Therefore, I am committed to building trust with all the relationships in my life. I will not settle for anything less, and I wish the same for you.

Here are some resources and articles on trust and trust building:

What is trust? ( from changingminds.com)

The Speed of Trust: The one thing that changes everything (Stephen M.R. Covey)

More resources, perspectives, books, and articles about Trust

Trust Agents by Chris Brogan (Thanks George !)

Exclusive Buyer Agents Unite for the 15th Annual NAEBA Conference and Cruise

It’s hard to believe that only a few days ago, I was on a Royal Carribean cruise to Cozumel for NAEBA’ s 15th Annual Conference. It was such a thrill to meet other real estate professionals that are passionate about providing representation to real estate buyers without conflicts of interest. I am looking forward to next year’s conference in Tuscon, AZ!

Some Things are Worth Second Chances: My Return to NAEBA

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As of this week, I officially reinstated my company with NAEBA, or the National Association of Exclusive Buyer Agents. The change of heart came after a few years of going it alone with the encouragement of peers who were kind enough to keep in touch with me. After speaking with a few peers and Kim Kahl, who is the executive director of the organization I learned that many things have changed for the better. I am excited to see all of the new changes taking place, and I look forward to joining a committee and contributing my energy to the goals of the organization.

Dual and Designated Agency: A Picture is Worth a Thousand Words

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A friend on MySpace found this awesome picture that does a great job illustrating what dual and designated agency is and why they are both a conflict of interest. This picture is definitely worth a thousand words.

Dual agency happens when one agent represents both buyer and seller in the same transaction or when one company assigns two different agents within their company to represent buyer and seller respectively in the same transaction. The effect of designated agency is the same as dual agency because the same broker (company) is “designating” two agents from his or her company to represent buyer and seller respectively in the same transaction. The effect is the all the same. It’s dual agency no matter how you color it up. The cartoon above illustrates the effect of dual / designated agency loud and clear.

Merry Christmas to all!