Wed 4 Jun 2008
Your Friend, Your Agent?
Posted by Marlow Harris under Real Estate
[5] Comments
The Washington Post had a story, Your Friend, Your Agent?, debating the merits of hiring your frends v.s. hiring some stranger to assist one in a home purchase or sale.
The article includes several stories of buyers and sellers who chose relatives or friends over someone they didn’t know, and discussed the merits of each choice.
One point of advice it gave:
Before you choose to work with a friend, ask yourself what type of agent that person is. If you are moving out of the area, does he have the experience and affiliations to find you a home in another state or country? Also realize that an agent will be privy to your financial data and other personal information.
If you are staying local, will you continue to have contact after the transaction? If hiring someone destroys your friendship, what other parts of your life will be affected? Do you have mutual friends, share a place of worship or spend holidays with the prospective agent? If your friend is doing you a favor, even reducing his commission, would you hesitate to ask questions, tell him you are not completely satisfied or disagree with his advice? And when it comes to doing the deal, you want someone who can negotiate so that you’re confident you were properly represented.
I would think that NOT hiring your friend would be more likely to destroy the friendship than hiring them.
June 5th, 2008 at 5:00 am
I have been the “Broker That You Were Friends With But Did Not Use”, let me tell you that it sucks!
Twenty plus years experience and someone goes out to make use of someone with half the experience and none of the personal motivation to do right by a friend… I asked and was told that doing business with a friend isn’t a good idea. I just disagree with it entirely. If your friend is a good friend, and a good agent you would be crazy not to use them. No stranger is going to have the same motivation as a good friend…
June 6th, 2008 at 5:40 am
Marlow,
I read the same article the other day, and where I’m in Chicago, not Seattle, I believe that home-buying public is of similar mindset. I remember teaching new agent classes and going through the creation of your Sphere of Influence. Many of the agents would comment on this very issue.
I personally feel, and have said this exact same thing to hundreds of agents… if you believe that you are good enough, will give 110%, and will commit to overserving your clients until the transaction is closed and beyond… then by all means work with friends.
If not… work open houses. I think that herein lies the problem is that some sub-par agents work with their friends, and here is where the problem begins. Long story short… step it up to an “11″ if you’re going to work with friends, or risk losing the ones you’ve got.
Matthew Dollinger
@properties
matthew.dollinger@gmail.com
June 9th, 2008 at 8:00 am
I’ve faced this a number of times.
It’s true that if you have a good friend who’s an agent and you hire someone else, it can be a real slap in the face.
I’ve been there. In fact, when my wife’s grandfather was going to sell his home, he hired a complete stranger to list it instead of me. I brushed it off quickly but it really hurt my wife and has caused a rift between them that has yet to heal.
But also if you’re friend’s not a good agent, then you shouldn’t feel obligated to use them just b/c you’re friends. A real friend would want what’s best for you, no?
It’s a tough one to be sure.
…jp
June 9th, 2008 at 10:20 pm
“Alberto Iraola, who owns a landscaping company and has a real estate license, referred his friend of nearly 40 years, Steven Evans, to another agent. For this referral, Iraola received a 1.5 percent commission that he then gave to Evans.”
Not sure I want to comment on that… But it certainly does explain why he does not practice real estate as his primary profession.
Which.. interestingly there is no mention of choosing the friend that does real estate part time or choosing a friend that does it full time which is probably more important then anything the article mentioned…
June 21st, 2008 at 7:00 am
Well I think this is definitely a valid conversation. I’m not quite certain who would turn out to win eventually. But it is great to know the real choice is between a realtor and a friend. A realtor is supposed to be highly ethical in their relationship with you even if they happen to be a stranger. And a friend is supposed to be a friend. So I don’t really know which is best. You pick!
The Foreclosure Doctor