Q. As an investor, what are some of the biggest (or most common) issues you’ve run into when being represented by an agent in a transaction?
A. Agents (most of them) do not have the ability or training to counsel their (unpaid) clients – they want to grab a bunch of listings and try to show and sell them without really knowing the needs of their client. They don’t understand how to be a fiduciary buyer’s broker if they did they’d be able to sell properties that are not listed and get paid a fee from their client (not the seller).
They fail to understand their client – how much money is available and where is it – cash on hand, need to borrow it, has a partner, what do they expect from a purchase, will they hold or assign, agents (many of them) don’t understand investor’s negotiations with sellers related to seller financing, subject to, delayed settlement, skinny contracts, and contract clauses to protect and help their clients make a profit. They fail to get to the dominant buying motive (read Five Great Rules of Selling – by Percy Whiting – out of print.)
Good luck! And keep those questions coming!
~ Charles Parish
CEO and Founder, Investors United.