by Paula Swayne | May 31, 2010 | fiduciary responsibility, Out of area agents
It can happen many ways…an old friend asks for help with selling their house, even though they know the agent doesn’t normally work that area; the agent receives a referral call from another agent for an area the agent isnt’t familiar with- the potential agent hasn’t had an escrow close in months and is hungry; the agent has listed their clients home and the sellers are willing to have the same agent represent them, even though they know that agent doesn’t normally sell where they are buying. Do you see a pattern developing? It is so easy to fall into the trap of trying to be all things to all people, especially when escrows are fewer and the agent needs to pay the mortgage. This is not an easy time in real estate. The adage of “Agents are working 3 times as hard at twice the cost for 1/2 of the income” is not really a joking matter…it is true. However, need is not an excuse to ignore the primary duty to the clients. The fiduciary responsibility to the client is to advise them as to what is best for the client. Working in an area that the agent knows little, if anything about, is not in the best interest of the client. Every neighborhood has nuances that an agent must know in order to properly understand market value. The same house could have two distinctly different values and only be blocks apart and only an expert in the neighborhood will know where that line is drawn. There may be a history in the neighborhood that could affect value...