Agents Due Diligence and Responsibility to Buyer Clients – BUYER BEWARE

In the last 2 weeks I have interviewed and been hired by two seller clients who’s prior purchase story has become all too familiar.

Both clients must move due to job situations and both will be losing thousands because they were not properly informed during their original purchase. A buyers agent is responsible for making sure their client is aware of the comps, market history in the area and providing a written price analysis of any property they consider. Yes it is more work for the agent but instead of buyers accepting the agents word that “this is a good deal”, a potential offer should be fully supported with a detailed market analysis identifying recent sold comparables and current active listings in the neighborhood. In both my clients situations they were presented with neither. One of my clients was stunned to learn they paid the highest sale price in the neighborhood over the previous 5 years. Delivering that information was heart breaking especially when you consider they purchased at a time when the market was depressed, moved from out of town not knowing the area, yet told “it was a good deal”. This is a prefect example of an agent making a quick sale and easy commission for irresponsibly failing in their basic due diligence obligation to the client.

Bottom line, all purchasers should demand and expect a level of service from an agent that protects their best interests. An agent owes their buyer client the due diligence necessary to properly inform them BEFORE making a decision on what to offer on a property. In either of my two clients situations this would have prevented the financial loss they will endure all because basic agent services where poorly lacking. I encourage all my clients to interview several agents before making any decisions. There is a basic list of questions that should be asked about levels of service and being provided with a comparable analysis of market activity in a neighborhood you consider is vital.

Good luck…Dan Cannon

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