Since the first installment it appears that our house is sold once again. For some $3,000 below that last selling price.
Has the market changed? No. Has the house changed? No. Has the neighborhood changed? No.
So what has?
The agent.
Advertisements for real estate companies emphasize how much they’ll support you, how they’ll work to get you the best possible price, and what an easy and dreamlike experience your house sale will be.
Copy from one large firm reads:
Your agent is a trained professional who knows all aspects of the real estate market. An agent will save you time, money and aggravation.
…you want to list with the agent who is the expert in your location. After all, potential purchasers will be calling this “area expert” to inquire about houses for sale. There will be a few of them who are knowledgeable about your neighborhood. Call them up and interview your potential agent. You need to feel comfortable with him or her, after all, they will be working for you. “
They will be working for you…..
“Know what to expect and take stress out of the transaction by getting some insight here. When it comes to bargaining and persuasion your agent is one of the top in this field.”
“By knowing your parameters, your agent can work with the potential purchaser’s agent to create an offer that will be acceptable to you. After all, it comes down to bargaining and persuasion, and your agent is one of the top in this field. “
The reality can be quite different. Rather than working for you, most agents are working to get their commission – usually something like 5% of the selling price – as fast as possible.
There are agents in Hamilton who are notorious for encouraging homeowners to set a low asking price, not because that’s the best price that the house could be sold at, but because that’s the price that will allow them to sell it as fast as possible.
Until the market trended upward a couple years ago there was one agent in Hamilton who listed every house at $99,900. Neighborhood, condition, none of this mattered. He knew that at $99,900 the house could sell fast and he would pocket the commission with a minimum of work. No matter that some of those houses could have sold for more than $100,000.
Most agents aren’t quite so obvious, but the goal remains the same: sell it fast, even if it means selling it at a lower price. Get the deal signed quickly and move on to the next one.
If a house sells fast that’s fine. Everyone walks away happy.
If though there are difficulties things fall apart quickly.
What if the agent brings you an offer that isn’t acceptable? Ideally the agent will go back out, develop some new leads, and come back with something better.
What actually happens is that the agent will often try to bully the seller into accepting a lesser offer. If the seller refuses then the agent, previously your best friend in the whole world, will suddenly begin to view you as hostile, unwilling to compromise, and you’ll suddenly find yourself dropping to the bottom of his or her priority list. The agent who could deliver three offers in three days suddenly won’t be able to find anyone who is even interested in viewing the house.
The longer this happens, the less effort the agent will invest. By the time a couple of weeks have passed he or she will have convinced themselves that the house is unsellable.
Our house sold with an unconditional offer. That means that the seller places no conditions on the sale. It’s a done deal.
In what was perhaps our first mistake we allowed the agent to represent both the seller and buyer. I’m sure that there are people who could handle such a conflict well, but our agent was not one of them.
Several days before the sale was to close the buyer began making demands, that we rewire part of the house, that we move the fence, that we solve a property dispute that existed only in his mind.
We discussed all of these with our lawyer, and reassured that we were in the right, told our agent that a deal was a deal.
As the closing date approached the agent suddenly began pressuring us to give in to the buyer. He even went so far as to say that he would pay for the rewiring out of his commission, if only we would force our neighbors to write a letter promising that there was no property dispute. Their lawyer told them that since there never was any dispute, and since the buyer was obviously of a litigious nature, they should sign nothing.
Next the buyer appeared on their door step unannounced demanding a letter from them. They balked.
The day of the sale the buyer backed out and abandoned his deposit.
We cooled for two days, then on Monday contacted the agent.
He immediately began trying to force us to move the fence so that he could rescue the dead deal. Nothing we could say could convince him to let it go and re-list the house. Finally we had our lawyer call him to read him the riot act.
It was nearly a week before the lock box returned to the door, allowing other agents to get in and show the house. It was several more days before a sign went up.
When first listed our agent had four groups tour the house in three days, three of which made offers at the asking price. He was so successful that calls from other interested parties went unreturned. There was so much interest that we were sure that we had been talked into lowballing the price.
It was more than a week before anyone toured the house the second time it was listed. It was two weeks from the closing of the dead deal before a newspaper ad went in. Of the very few groups that actually saw the house in the next three weeks, one of them was met by me when no agent showed up to let them in.
As we approached the date a month from original failed closing our agent brought us one offer. It was for $7,750 less than the asking price. He was neither embarrassed nor apologetic for handing us such a pathetic offer.
We finally accepted an offer which was $3,000 off the asking price. It was obvious that nothing would move this agent enough to get him interested in selling, so we had to accept whatever we could get.
Sadly we had been battered own to the point where it was easier to take a loss than it would have been to keep hounding the idiot agent to do his job.
In the meantime we’re also out of pocket for several thousand dollars in expenses, and are looking at the very real possibility that we will wind up in small claims court to try and recover some of that from the first buyer.
Now I know that many people have friends who sell real estate, and they tell me that their agent buddies are honest and forthright. Since every agent that we’ve dealt with has been referred to us by a well meaning friend I find that hard to believe.
From this day forward it is assumed that all real estate agents are our adversaries, not our friends.