Connecticut Real Estate Blog - Real Real Estate in CT

There are ten or so “leads” from people interested in one property or another in my e-mail inbox.  Interacting with these home buyers has shown me that there are two kinds of buyers in the marketplace - those who want my help and those who view me as a speed bump on the road to their new house.

I can tell instantly in the e-mail they send me:

• Buyer A:  I was reading your blog and I’m looking for an agent to help me purchase a house.  I’ve seen some properties I like but I don’t know how much I can afford.  If you’re available, can we meet?
• Buyer B:  I want to see 123 Main Street in West Hartford tomorrow at 3 PM. 

I’m similar to a computer (but not in a creepy way) - I’m only as good as the information put in.  Based on the limited information above, I have instantly calculated that:

• Buyer A is looking for help.  Buyer A is serious.  Buyer A is willing to obtain mortgage pre-approval.  Buyer A will listen to advice I give them and probably not hire a dopey lender who will fall through three days before closing.  Buyer A will follow advice about the inspection and not be surprised when the report shows that the property needs a new roof.  Buyer A will receive top priority because they are willing to sign an exclusive buyer agency agreement and they will get the best service.
• Buyer B thinks I’m a doorman.  Buyer B doesn’t realize that he’s paying for a buyer’s agent whether he uses their services or not.  Buyer B could also be a nosy neighbor, someone who drove by the house and has no idea how much it costs, probably is not pre-approved for a mortgage and doesn’t really want me at the house - they just want to be let in.  Buyer B will recieve service when I get around to it; sorry, but I have to put clients first.

Would you call an attorney and say, “Meet me at the courthouse at 3 PM tomorrow because I need you to defend me in a murder trial?”  No, that’s idiotic. The attorney would probably hang up on you.  Realistically, his receptionist would hang up on you.

You may say, “but listing agents are more than happy to run out and show a prospective buyer a property at a moment’s notice.”  Know why?  First, it is a listing agent’s job to sell the house and that means showing it to as many peopla as possible.  And if you buy the house and don’t have your own agent, it’s like the happiest day in an agent’s life.  (Insert picture of agent doing a touchdown dance.)  They get the whole enchilada - the listing agent’s commission and the buyer agent’s commission - somewhere around 5 or 6%.  So, they’re highly motivated to show you.

A buyer’s agent will not run out to the property because you are not our client (yet) and we haven’t even met you.  I am my own product - I sell my services not the house you’re buying. 

So, if you want top notch service and a great house, think about how you are perceived by the agents you contact when looking for a house.  They are judging you as much as you are them. 

A few weeks ago, I told you about a nightmare situation with clients who closed on a property and were having great difficulties getting money they had put into escrow released to them.   It all had to do with a mistake made by a septic inspector and getting that issue resolved before the bank would release the clients’ money from escrow.  Read about it at Escrow Money Saga.

The good news is that my clients had their money returned to them!  Right after I posted that story, I sent the mortgage broker a very detailed timeline arguing the case for my client.  Although I had spelled out the details several times to the broker, it took this e-mail summarizing the situation to make the lender and their underwriter to see the light.  The next day, the lender sent the buyer’s attorney a letter releasing the money. 

I truly thought I was going to be stuck in a bureaucratic quagmire for the next year.