As a seller in a strong market, you still need to protect yourself from issues that can crop up during escrow.
Getting a real estate license is very simple, and we’re seeing a lot of part-time agents in the field. If you’re a seller and you have eight or nine offers on your home, understand that the buyer’s agent is actually more important than the buyer in the success of your transaction.
Nearly 90% of the problems I’ve seen with personalities in a real estate transaction arise when agents butt heads. Since agents can sometimes have large egos, you’ll want to vet that agent before working with them.
Your listing agent can help you vet your buyer’s agent and lender by determining the following:
- How many transactions has the buyer’s agent done? An agent who only does one transaction a year and is their own broker should raise red flags.
“Make sure the lender you work with is a top producer”
- Does your agent know the buyer’s agent? Many of us have been in the industry for a while. If the buyer’s agent is newer, have your agent look up every single transaction that the buyer’s agent has done and find an agent who has worked with them. Someone who has interacted with them in the past can tell you what their experience working with the buyer’s agent was like.
- Is the lender a top producer? Sometimes, big banks decide to drop rates to really low levels to get people to apply for loans, and other times, they’ll raise rates to reduce the number of incoming loans. Big bank lenders can be great for refinancing, but they can cause trouble for purchases since they’re bound by their bank’s regulations. Make sure the lender you work with is a top producer; if they are, they can get the attention of their management quickly if, say, there’s a problem with the appraisal or insurance. Your best-case scenario is finding a broker with a good track record whom your agent has vetted for experience and understanding.
While it’s nice to know who your buyer is, I’ve found that knowing them isn’t as important knowing who represents them on the other side. Make sure they have solid representation who can guide them through the process to avoid future issues.
If you have any questions about this or other real estate topics, don’t hesitate to reach out to me. I’d be happy to speak with you.