When you are a control freak like me, real estate is a hard
business. A real estate transaction, by nature, is a confluence of mutual
interests. Sellers wants to sell, buyers want to buy, etc. Where it gets tricky
is when there is disagreement between buyer and seller on the terms of the sale.
This is where being a control freak becomes
problematic. As the agent of either the buyer or seller I am not given the
luxury of being able to participate in negotiations with the other side- let
alone control the outcome of those negotiations to ensure the satisfaction of
my client. In simpler terms- when I represent the buyer I cannot promise/guarantee/predict
the seller’s response to our offer, and vice versa (as much as I may want to for my client's benefit!). I am simply the messenger
delivering the message from the opposing party. Because I am your agent, not your attorney, I act upon your instruction whether or not I agree with or condone your decision and no matter how sure I am of the potential ramifications of your decisions. I cannot nor will not make decisions on your behalf. I essentially deliver your message after offering you my advice and/or opinion.
OK. Go back and read that last paragraph again. Let it sink
in for a second- there will be a quiz later. I’ll wait right here.
Got it? Great. Now
here is your quiz:
Buyer Jones makes an offer on seller Smith’s home. Asking
price is $200,000. Buyer Jones’ offer is $175,000. Buyer Jones informs their
agent they will absolutely not pay a penny more. The Jones offer is presented
by the seller’s agent to seller Smith. Seller Smith chooses to makes a counter
offer of $185,000. Buyer Jones is presented seller Smith’s counter offer and is
now angry at their own agent because they stated they would not pay more than
$175,000. Buyer Jones does not buy the home, and subsequently fires their
agent.
What is wrong with this picture? I’ll give you a moment to
think about it.
Got it? Good. In case you didn’t- here is the short answer:
It is not the fault of Buyer Jones’ agent that seller Smith responded to their offer
unfavorably. It is not the job of either agent to decide or dictate the terms
of any offer or counter offer. Regardless of what Buyer Jones stated up front
of what they will or will not do, seller Smith is entitled to counter in any
way they see fit- and the terms of that counter are NOT the decision of the Jones’
agent- or the Smith’s agent for that matter.
Conversely, seller Smith should not be angry at their agent for presenting them with an offer that is less than what they said was the least they'd take.
So, you are undoubtedly asking “what is the lesson here?”
Well let me tell you- buying and selling a house is more than understanding the
terms of the contract and what interest rate your lender is giving you. It is
important that you understand the entire process, and the nature of the agency
relationship between you as buyer or seller and your respective agent(s). We are obligated to deliver messages to our respective clients, regardless of knowing how favorably or unfavorably the message will be received. Not understanding
this vital aspect to real estate transactions can lead to misplaced anger and
frustration on all sides. The more you know the better prepared you can be.
If you are ready to make the leap into the real estate market- please call me for a free, confidential consultation!
Ok, kind of disagree with you. If buyer Jones told their agent that they would not spend a penny more, then when the seller Smith's agent calls buyers agent and says, " we'll be faxing, emailing over a counteroffer in the next 30min, then it is the 2nd opportunity to inform them that you won't be passing it on to your buyer because they have stipulated (in writing I would think to legally cover yourself in NOT presenting it to them) they will NOT be negotiating period. The FIRST time you should have mentioned it is when you delivered their First and Final offer. If their instructions had been followed as they wished you should have never passed on the counteroffer which would not even been written if you had made it clear with the FIRST offer. (Of course all this hinges on the legality of duties of agent respectively). This has nothing to do with controlling the response of either individual. Do you still disagree?
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