Who does the agent work for?

So who does the agent actually work for?

  • The Buyer: Convincing any buyer to put in lowest offer that vendor will accept for comission

    Votes: 1 1.1%
  • The Seller: Agents will still get the best price, even though there is an acceptable offer

    Votes: 16 17.8%
  • HIMSELF: The almighty $, will do anything to up buyers offers, lower vendor expectations at any cost

    Votes: 68 75.6%
  • Satan or some other devil

    Votes: 5 5.6%

  • Total voters
    90
TMNT
I think you need another option .... "ALL OF THE ABOVE", when you have been investing for a while you are bound to come across real estate agents that fit all the descriptions you have mentioned, I certainly have.

Of course the one I want to work with when buying a property is the one working for me, from my experience does not happen too often though.
 
themselves ... they work for commissions

has everyone here seen Wolf of Wall Street? IMHO Matthew McConaughey's rant in the restaurant to a noobie Leo DiCap about how "broking" works at the start of the movie is analogous to agents :eek:
 
I've been to an average of 3 inspections every Saturday for the past 3 years. That’s 468 inspections and a lot of chit chat with agents.

I didn't vote because it varies from agent to agent and also depends on the market.

You have a dead market where it’s a buyer market, the agent will get the first potential sale and get it signed. For a hot market like today in Sydney metro area, agents may work a different approach where he may in engage to all potential buyers as a whole and get them to submit initial offers and then work off that to get a potential final offer..

The agent may also have some sort of incentive agreement with the vendor; if you can get me a sale price over x dollars, I will give you x amount more. Some vendors may so, anything over this price, get it done asap.

The agent at the end of the day works for the vendor with optional instructions. However, at the same time, the agent works for himself to make a good reputation for the next sale that comes.

I would think that the role of an agent is very repetitive. Same thing each week. They adapt to a particular methodology over time and stick with it.
 
The agent at the end of the day works for the vendor with optional instructions. However, at the same time, the agent works for himself to make a good reputation for the next sale that comes.

The reputation is something agents make up themselves. There's an agent in the Bankstown area claiming he is the number #1 agent... against who? He runs his own real estate agency and says he's #1.

Homer Simpson said:
Aw, you can come up with statistics to prove anything, Kent. Forty percent of all people know that."

As for sellers thinking a particular agent is the best, you need to understand that if a seller thinks their agent is crap, they are effectively admitting that they could have got more.... not something people are willing to do.

"The greatest trick the Devil ever pulled was convincing the world he didn't exist"

In the agents case, the greatest trick is for them to convince everyone else they are genuinely caring people and will go out of their way to help others - reality is, once an agent gets the sale, they won't give two shts about the purchaser or vendor.
 
As for sellers thinking a particular agent is the best, you need to understand that if a seller thinks their agent is crap, they are effectively admitting that they could have got more.... not something people are willing to do.

I've read plenty on this forum about people who are very unhappy with their agent :confused:.

"The greatest trick the Devil ever pulled was convincing the world he didn't exist"

In the agents case, the greatest trick is for them to convince everyone else they are genuinely caring people and will go out of their way to help others - reality is, once an agent gets the sale, they won't give two shts about the purchaser or vendor.

I beg to differ on this one too. My late mother was a highly respected local agent. She had people calling her eight years after she retired wanting to have her sell their houses. I recall clearly two cases where my mother suggested a buyer buy another house (different agent) because she knew it was a better fit for them. My mother could never have been dishonest. It was not in her nature. Because of my mother, I know plenty of agents, some of whom I would not sell with, but I also know the ones that I would sell with. In fact, it makes it difficult really because when you know a lot of agents, picking one is not easy.

We've never had an agent come to us and say "take this offer" without trying for more. However, a good agent will also have sussed out their buyer (qualified them if you prefer that term) and will have used their methods of digging gently to see "how much more" is in the pot, or if this buyer is really stretching themselves to go as high as they already have.

For our most recent sale, the buyer had buckets of money and could have paid more for the house. However, he initially offered $50K less than we took, and We all knew that he was playing us, that he knew very well the market "now" was a very different animal to the market twelve months before, but he was playing a game. Luckily, we knew how the play the game too.

We told our agent not to even bother going to paper with his stupid low offer. She suggested we ignore him and see if he came back, which he did a couple of days later with an offer that was close enough to what we wanted. More importantly, we had nobody really hot to buy at the auction, only ten days away. Better the bird in the hand, than two in the bush, especially as we got nothing from this sale. It was all going to lawyers, barristers and our brother and his son after a will challenge. The risk of not selling on auction day would have had his barrister on our backs to sell quickly after that, and we didn't want that pressure.

We toyed with trying to push him up but he was of the mindset that he had already come up $50K more than his stupidly low first offer, and we would have been asking for more only to "win". There was a risk that he would feel he had "lost face" and so we signed him up. We had issues between signing and settlement, which I could write a book about, but that is another story, and all settled as planned after much gnashing of teeth and loss of sleep.

I really do believe (as did our agent) that had we "played" this chap and pushed for more, he would have walked away. It was not a risk we were prepared to take, and some would see that as our agent accepting any offer, which we know for sure is not the case. Sometimes you must realise that many agents are pretty clever in the psychology department, and can read a buyer pretty well.

Whilst this buyer was stuffing us about, our agent found another buyer, same price which we were about to sign up (after seeing our solicitor to cut the first buyer free), when he decided he was going to play nice, after all. That is the sign of a good agent, continuing to market it and get a back up contract, just in case.
 
Id love to put my experience with agents, my mates are agents and heard a few good ones, I could tell a few good stories, However. I would never print these stories, I could only tell them over a beer. That said, some are absolute cracking.
 
So far not a bad run of agents, most willing to help out and make the transition/process as smooth as possible.

Only one was a bit suss, ex-car sales-person transitioned into real estate.

Agent: "This is a great property, good bones, needs a "small" reno (Ie Re-stumping, Re-wiring, Re-roofing), but your a young guy, be easy for you, wont cost that much to repair :D:D

Me: Oh well you've convinced me where do I sign? NOT !!
 
So far not a bad run of agents, most willing to help out and make the transition/process as smooth as possible.

Only one was a bit suss, ex-car sales-person transitioned into real estate.

Agent: "This is a great property, good bones, needs a "small" reno (Ie Re-stumping, Re-wiring, Re-roofing), but your a young guy, be easy for you, wont cost that much to repair :D:D

Me: Oh well you've convinced me where do I sign? NOT !!

I thought they were all like that?

"This property is great for First Home Buyers/investors/developers/upsizing/downsizing/retiree's/cockfights" etc.
 
Believe it or not. There are some good agents out there.

The ones that are investors themselves. Actually return your phone calls, honesty, backs up there opinions with facts and figures. Goes out of there way to make the deal happen for you and most important you feel you have dealt with a professional.

I would like to think I tick all of those boxes. It's not hard to be all of this but I meet so many everyday and understand why my profession gets the reputation it has.
 
So, lets ignore politically correctness, and hurting peoples feelings and say it how it is:)

so......who does the agent work for?

I say Satan/Himself, but I have come across a few agents, who have refused to push the vendor accepting my offer which after negotiations was down to $1.5k
I worked in RE for a very short time (not for me, I'm afraid) and did terribly at it....our whole office did terribly while I was there - didn't sell one single property across 3 sales people in 4 months!

Anyway, looking back; I could see how it might end up; the agent is starving, needs a sale; this is when they start working for themselves a bit more.

Before that - working for the seller, but always having to narrow the gap between the buyer and seller.
 
Over the past five days we've dealt with three agents, looking for houses for our middle son.

I called an agent on Friday afternoon about a house we were keen on seeing. It was open for inspection the next morning, so perhaps the agent thought if we were keen we would be going to that. He didn't call back and at the open house he had a young lady there who took my details. I was first through and nobody behind me so there was no excuse for her to not mention the house was under contract. We were about to approach her to ask if we could put on a contract, when my husband overheard that it was under contract.

I understand a good agent will continue to market a property until it becomes unconditional, but it would have been nice to know it was under contract.

By now, there were people swarming all over it, probably 30 people in the house.

Sunday afternoon we looked at another two houses, lovely agent, couldn't fault him, would be happy to deal with him any time.

Monday I called an agent about another promising house, and was told immediately it was under contract. We arranged to look at another one (looked at four in total yesterday), and put in a contract last night, and after some back and forth and a sleepless night, the answer today was that our middle son has bought himself a mortgage (and a house).

This agent was honest, straight and I would deal with him again.

I now plan on emailing the first one, who didn't bother to call me back and let him know that he had a red hot cashed up, cash unconditional buyer ready to buy a house, but seeing he didn't bother calling back, he has missed out on a possible sale and also how annoying it was to get excited about a house and not have been told it was already gone.

So... most agents I know (and I know a LOT) are decent, honest and straight. It is the ones who are not that give "all agents" a bad name. It is no different to doctors, lawyers etc.
 
wow, thats an interesting one, do I have an honest agent

Just had a call about an hour ago from an agent ive tried to call a few times (10PM)

admittedly, I met him at an open a few years ago, he didnt remmeber me as I didnt talk to him,

bought a house off him a year or two later unseen, during this time we verbally agreed on price, and then he agreed not to sell it to anyone else as I had signed the contract, and was waiting for the vendors to sign, even though legally he didnt have to (at the time I thought yeah yeah whatever mate!!!)

then I saw another one of his properties, which I passed as it was too hard, 6-8 months later, as I was enquring about a different one of his, he told me to have a look at it again. I proceeded to inspect, and apparently an offer was accepted the day I inspected (was a bit bummed out, as it was on the market for so long and the day I look at it goes) . The property proceeds to be sold and fall through 3 times, my friend agent at the time says "no way he has that many people offering on it when it hasnt had an offer for 6-8 months, he is lying"

Then I get my first bite at it, went in fairly aggressively, and my price was not accepted, originally, but eventually meeting half way to secure it. all is good

Fast fwd6 months, i respond to one his mail out spam emails on a good looking reno deal with no price on it,

so I call him up , and ask what price it is, then he says "mate, I know you know your stuff, this one is way overpriced, I shouldnt be saying this as an agent, but I couldnt sleep at night selling it at this sort of price. Dont buy it"


do I have a completely honest agent????? or am I being naive:D
 
So, lets ignore politically correctness, and hurting peoples feelings and say it how it is:)

so......who does the agent work for?

I say Satan/Himself, but I have come across a few agents, who have refused to push the vendor accepting my offer which after negotiations was down to $1.5k

1. Himself
2. Buyer
3. Vendor

;)
 
Ultimately the role of an agent is to represent their client to get them the best result, without lying/deceiving their client or purchasers. Unfortunately this is not always the case as agents sometimes chase the quick fee at the expense of their reputation. Thankfully, many of these hustlers don't last too long in the industry.

I've found that the top agents are those who do the right thing by their clients and are honest and open with buyers. As a result they don't have to make 200 cold calls a week to get 5 potential sellers to get 1 sale. Instead, clients throw themselves at them and refer all their friends/family to them.

It is often less lucrative in the short term to do the right thing by your client but in the long run it's far more beneficial - also it's nice to not have to watch over your shoulder for disgruntled customers/clients. I think the same thing would go for just about every other professional service provider (accountant, mortgage broker etc)

John
 
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