I once overheard a conversation between two real estate agents. They were discussing a pending transaction and the question arose as to what home inspection company to recommend to the buyers. "Don't have them use Home Pro, they'll find everything that's wrong with the house!" said one agent. Why wouldn't you want an inspector to find everything that's wrong, particularly if you're representing them? Because if they do, it's possible that the buyers will become unhappy and back out. That means you don't get paid. Of course, if you are putting their interests first, above everyone else's- including yours, you would want the inspector to find everything that is wrong. Easily said, but when a really nice payday is hanging in the balance, it clearly presents a challenge to some agents. By the way, guess which inspection company I used when my wife and I were buying an investment property? Right-Home Pro.
MORE REAL WORLD AGENCY
Here is another quick personal example to illustrate how the agency issue relates to the real world. One of my former students, Ali Sarlak, runs a landscaping company in our city. He took my courses to learn more about investing. Recently my wife and I were ready to take off on a month-long automobile trip. I needed someone to water the yard, mow a couple of times, and generally look after things. I thought about hiring a youngster who lives nearby, but concluded it would be too big a job. I then started considering landscape companies. I got no further than Sarlak. I immediately realized that he would treat my yard as he would his own. (I've seen his.) I further realized that he would even do a better job than I, because he has the knowledge and experience I lack. When people think about hiring a real estate professional as their agent wouldn't it be great for them to reach the same conclusions about you?
WHEN THE DEAL IS DONE
You've listed the Johnsons' home. What is the best possible outcome for them? They get a fair price from a qualified buyer, with no unpleasant after-taste (like a lawsuit). They get their check at close and move happily on to their new life in New Jersey. What is the best possible outcome for the buyers, the Browns? They pay a fair price and get a home that meets their needs. All material facts about the property are disclosed to them before they buy. What's the best possible outcome for you? In addition to that nice commission check, the Johnsons and the Browns are both so impressed by your consummate professionalism, hard work, creative problem solving ability, and integrity that they say nice things about you to all their friends and associates and vow that in the future they would never work with anyone but you. Don't become so involved in fighting the agency alligators that you forget that your primary job is to tidy up the swamp.
To assist you in focusing on your primary task in any real estate transaction in which you're involved, I'll share with you my TOUCH system of selling real estate. It has proved very popular with my students over the years. Of course, their grades were in the balance.