Loyalty: Is Your Agent Really On Your Side?

So many people tell me that they truly wonder if their real estate agent was really on their side in the last real estate transaction that they did?

It's a good question that smart people need to ask before they hire an agent. 

I had a case where we had an accepted offer on one of my listings, and I drafted a seller's condition that the sellers would only sell if we could purchase another house within a few weeks. It is called a Seller's Subject To Buying. 

Most agents do not know how to use it, or they won't use it because they don't want to lose the first transaction if their client can't find something to purchase. 

In this scenario, with the second transaction, or the buying side, I knew the listing agent; in fact, he was from my Sutton office, one of the top brokerages in Metro Vancouver. But under designated agency you are represented by the designated agent on the transaction. 

I negotiated for my buyers, and the other Sutton agent acted for his sellers. However, what I see out there is that many agents in different markets, regardless of which company they work for, are far too close with other realtors.

In my case, even though I knew the agent, my loyalty was 100% to my clients (as it always should be). For the record, in 35 years, I have never done a deal under a limited dual agency when it was permitted. 

How can an agent act for the buyer and the seller simultaneously? It reminds me of ICBC after you get in an accident. You scratch your head and ask yourself who is ICBC acting for because it's sure not me?

But what is worse is when I see other agents do things and say things that do not reflect loyalty to their clients. 

My loyalty is never divided; in this case, I negotiated a very good purchase for my clients. They bought at a price that the top agent in the community told them could not be done when we viewed one of his listings. He said it was "impossible". 

Just so you know, I love it when other agents tell me that I can't get something for my clients.

In this case, the sellers were divorced, and the subsequent inspection revealed significant problems. We negotiated a price reduction that allowed my clients to undertake much-needed repairs on the property and do some renovations. 

My clients then removed their subject on the sale of their home and proceeded with the purchase of the new home. And we moved to a smooth completion. 

Following that, the seller's agent on their newly purchased house told me that the next time he personally purchased a home, he would use me as his buyer's agent because of what I was able to achieve for my clients. 

Months later, that same agent expressed bitterness over how well my clients did on the purchase? I was surprised by his demeanor as the home had been neglected by his clients, and one of them was very motivated to sell?

I was friendly, professional, and cooperative at all times and provided the inspection results to the agent, who passed them on to both sellers to review and consider before agreeing to our price reduction. 

They could have easily said no or made a counteroffer, but they accepted our offer.

The truth is that my loyalty is not to another agent or to the other party in the transaction. 

I don't do favors, side deals, or not negotiate to my full ability because I may know another agent, or because I want to do a quick deal like some agents that I see. 

My job is to use my skills on behalf of my clients exclusively. To act in their best interests at all times and protect their negotiating position.

But when it comes to loyalty, you better be careful. It is something that many agents and cultures do not understand. I negotiate very good outcomes on my listings with Asian buyers because I refuse to do under-the-table deals or reveal my client's bottom line. 

They look at me and know that they will not get away with what are normal practices in their culture. 

Because our law says that all real estate agents have obligations to their clients under the Real Estate Services Act that include:

Loyalty

Not to act for both parties

Not act for parties whose interests conflict

Avoid all conflicts of interest

Not misuse confidential information

Obey instructions

Act honestly

Exercise care and skill

Not to disclose information concerning your maximum/minimum price or terms

Not to disclose information concerning your motivation

Duty to disclose information concerning material defects

Duty to disclose information obtained from other parties

Provide confidential advice on any or all relevant matters

Help negotiate and draft favorable terms

Personally, loyalty is my highest value. If we work together, you will know whose team I am on. 

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Received From Happy Clients

Dear Rory,

We want to recommend your real estate services after a very positive experience in listing with you. For some time, we had been discussing the possibility of selling our long-time family home.  After meeting you, we made the discovery that you were possibly the professional we had been wanting to meet in order to take the plunge of listing.  We never regretted taking the step to sell, and right from the beginning of the process, we were impressed with the detailed analysis of previous sales in our area, market conditions, and the factors to consider in realistic pricing.

In every detail, we felt you were working in our best interests. Your advice on the timely marketing of our property achieved a relatively quick sale with slow sales over the previous several months. Your expertise was invaluable in so many areas, particularly in understanding the particular demographics of our area. There were many phases of negotiations, and all were handled with diligence, strategy and respect for all concerned.

Finally, your understanding in our decision not to repurchase immediately was appreciated. We will continue to recommend you to others and should we be looking for a home in the future, you would be our first choice!

Sincerely,

Paul & Eunice

Dear Paul and Eunice,

I was very pleased we could achieve positive results with the sale of your home. You were absolutely great clients to work with and thank you so much for your kind introduction to your good friends.  I look forward to helping you when you are ready to purchase your next home.  Until then if I can be of assistance in any way please advise.

Warmly,

Rory Sutter

Serving People Is What My Business Is All About

Dear Rory,

You really stand out in the professional world and as a real estate agent! (...because you're not cookie-cutter, boilerplate or run of the mill).

It's your genuineness, conscientiousness, expertise and personal concern that impacted my decision to pursue and challenge my property assessment and the hearing process.

I’m so elated by my win! Again a million thanks to you!

Best regards,

Jan Urata

Thank you Jan for your kind words and congratulations! I am so happy that you truly get what I am all about. There are thousands of realtors out there, but I consider myself a Real Estate Consultant who is building relationships with my clients for life.

It's not easy in this world to find professionals you can trust, that hold your best interests in mind and take their responsibilities seriously, but I do and I welcome every opportunity to serve you (and the people around you) in any way I can.

Many thanks for the introduction to your colleague at the office this is the highest compliment you could ever give!

Rory

How To Sell Your Home For Top Dollar

Recently I unveiled a new home selling assignment and had 30 agents come through with their clients along with several other people over a three hour period.

I like to create a very competitive sales environment with all my listings and I deliberately schedule multiple showings at the same time. Picture people walking throughout the house, standing on the sundeck, walking the yards, trying to find parking and crowding the street looking at the house from a distance; all at the same time. It is beautiful to watch and is guaranteed to get all the neighbours talking!

You can't achieve this with one group coming through the house at a time and it created a sense of urgency with the interested parties. People want what everyone else wants and my marketing efforts generated 4 offers to purchase the property and resulted in an accepted offer.

Having multiple offers allows the seller to realize top dollar as there is only one opportunity for buyers to purchase so they must start with their best offer and some will raise their price in an effort to secure the property.

My goal with every selling assignment is to cover my commission by helping my clients to realize extra value for their property. To achieve this type of activity and a superior result it is essential to price your property correctly and it helps to employ a strategic realtor who cares about every dollar you receive.

Thank you for your support!

Your Real Estate Consultant For Life,

Rory

In Today's Market You Need An Effective Strategy From An Advisor You Can Trust

Dear Rory,

Irene and I wanted to thank you for the great job you did in getting another one of our properties sold during a challenging time in the market.  Your experience, commitment, persistence, people-handling abilities and negotiation and sales skills were paramount to delivering this positive outcome.

Our decision to undertake this project came about as a direct result of your collaboration and input and it was great to have an expert in our corner for the second time and you provided us with the right advice when we needed it most.

As sophisticated real estate investors we understand the value of your professional services and share for the benefit of others that you are unlike the multitude of agents out there.  To say you are a cut-above would be an understatement. 

We highly recommend you to buyers, sellers and investors, and cannot over-emphasize that your clients are not hiring a typical realtor. You are an effective strategist and trusted advisor with a wealth of knowledge, who protected our negotiating position and there was no question that you were acting in our best interests at all times.

You built cooperative relationships with our tenants and offered advice on tenancies, property improvements and renovations; that ultimately got us across the finish line.  And it truly mattered to you that we have a buyer and closing by a certain date to save additional financing charges.  

There is no higher accolade than to say that you are truly a fiduciary Rory and thanks again for another job well done.

Sincerely,

David and Irene Rathbone

Dear David and Irene,

Thank you for your letter of recommendation. I truly appreciated the opportunity to assist you with this important project. We made adjustments along the way and together were able to realize the results you desired in a challenging market cycle. 

I really appreciate your reference to me being a fiduciary, which is what I am all about. For readers I share an excerpt from an article in my monthly e-newsletter defining fiduciary responsibilities:

"As it pertains to being a real estate agent, I have a fiduciary relationship with my clients and principals through the law of agency that requires me to protect and promote their interests as I would my own; including guarding their negotiating position at all times and disclosing all known facts which may affect or influence their decisions.  Agents also have the duty to disclose all remuneration to their principals. Hidden or secret fees are simply not permitted.  

A fiduciary duty is the highest standard of care at either equity or law and is based upon a legal or ethical relationship of trust between two or more parties. A fiduciary is expected to be extremely loyal to the person to whom he owes the duty (the "principal” and must not put his personal interests before the duty, and must not profit from his position as a fiduciary, unless the principal consents.)"

Continued success with your real estate investments,

Rory Sutter