Belt Auction - Real estate agents: Do real estate agents really have a clients' best interests at heart?

Real estate agents: Do real estate agents really have a clients' best interests at heart?

Question sounds argumentative, I'm probably not asking it right. My question is more to do with whether you think real estate agents are incented to sell property quickly for a reasonable price, or sell property for the best price possible. It seems to me (in my rather uneducated opinion) that to squeeze a few extra thousand dollars out of a listing (which nets probably only a few hundred dollars in fees for a agent) is probably not going to happen. Thoughts?

Public Comments

If you direct your question to real estate agents only then be ready for heavily biased posts. Starting now.
i agree with shaq...agents can only make money through sales so they will try to get both parties to agree...some agents are ethical, some not so much...
Think of every person you know. Some of them are good people and do what they are supposed to all the time. Some of them are good people and do what they are supposed to most of the time. Some of them are pretty good people and do what they are supposed to pretty often. Some of them...well...when you eventually get down to the bad people, they don't do what they are supposed to do unless it is in their best interest. I bet there are all types of people in all types of jobs- don't you? There are some great people that are real estate agents- I know several. There are some scoundrels also and I know them. I bet it works that way for doctors, teachers and even preachers.
Real estate agent are like use car salesmen. They don't make any money until the deal closes. Yes they have their own interests at heart same with the Mtg brokers. Remember anyone that is paid by the percent of the sales price will have their own interest at heart.
Your question ultimately depends on the Realtor you choose. Most Realtors will say that you need one and that you should never buy without them. NAAR will report that listing with Realtors will average a higher selling price than a FSBO. That may or may not be true, however, their stats do not consider the amount the homeowner was able to net, i.e. no commissions = can sell lower and net the same. One must consider how an agent gets paid - commission from selling or from a client purchase (buyer's agent). I have found that in most cases, an agent has no motivation to wait for the right/best property for you to buy. This comes from an investor's standpoint, however, and not all people have my experience and knowledge of the industry, including most agents. I suggest you get educated on the subject before attempting to interview agents. Just my $.02 on the subject. If you choose to utilize an agent, make sure they have great experience in the industry and that they come highly recommended. Good luck.
It depends on the agents attitude. If he is a volume, volume, volume guy then you know he wants quick, easy sales. But he is supposed to help the seller meet their goals.
I think it really depends on the person. My agent right now is soo sweet and she doesn't want us to pay a dollar more for anything. She told me she rather be poor then not be able to sleep at night. But I know what you mean- I think Mortgage brokers are worst........ they try to force you to put a bigger chunk of money down so they get a bigger fee.
A good real estate agent, as with good people in general have everyone’s interest at heart. I've been in real estate for about 5 years now, and it's very easy for me to say that I have my clients as well as my best interest at heart. It is not hard to close a deal where the seller received a good deal, the buyer received a good property, and the agents did their jobs and got paid. Getting the property sold in the fastest time isn't only to benefit the agent. The less time it's on the market the better it looks to a potential buyer. Buyers say it all the time "well this property has been on the market for 6 months, what's wrong with it?" Also, it gets more and more difficult to market a property that has been on the market for that long and the list goes on and on. For an agent and seller the longer it's on the market the more it costs to carry, financially and emotionally. I actually run across more agents who carry properties they shouldn't (priced to high and won't sell, or needs work etc) because of an emotional connection with their sellers. Unless the seller doesn't want to sell for a specific amount of time, it's usually in everyone's best interest to sell the property as soon as possible.
There is more than one way to answer this question. Does the agent have the legal/fiduciary duty to the client (exclusive buyers or sellers agent), or is the agent hired in a non fiduciary role? These types of representations or non representations are not all the same in all states. Having said that, it is obvious that there are good and bad agents, which is universal, regardless of state, but it becomes the consumers due diligence to hire the best agent possible. Agents don't like to work for free, but many times they do, and a consumer needs to select an agent who does not depend on the next "paycheck" to pay for their gas. All of my clients want me to represent them, meaning my fiduciary duty of Loyalty, Obedience, Disclosure, Confidentiality, Reasonable Care and Diligence and Accounting have to be observed. These duties can not be taken lightly and agents have been sued when clients feel their agent does not have their best interest at heart (see link below). Over the last few years, 100% of my business has been from previous clients or a referral of their friends. Why would any agent believe that a few $100 more in their pocket is worth more than the repeat business is beyond me, but I'm sure there are some as I described above. So, I'd say for any agent to be so short sighted, will not be in this business for long and might end up in jail instead (as they should).
Well, there are certainly good and bad professionals in every field. Good Realtors have code of ethics training and do their best to protect the best interest of their clients. After all, this is how a thriving business is built...through referrals! Given the current market conditions, most of the really bad agents have dropped out of the game. Particularly if they have done such "shady"business that no one wants to call them again!
NO, NO, NO and NO they only have their own interest in mind. 10K less makes no difference for them but a huge difference for the client. They just want to get paid. 99.9000% are of REALTURDS are Scummy. As an FYI… per the Federal Trade Commission (FTC) http://www.ftc.gov/freereports , there is only one source for you to get a free credit report from all three credit repositories, “annualcreditreport.com”. https://www.annualcreditreport.com/cra/index.jsp Do not give anyone else your personal info without seeing them in person. Make sure to price out your loan with your LOCAL banks and mortgage brokers only. A lot people giving advice on here are also looking to give you a loan (it’s not advice, its advertising), if they are not local to you and you can’t get to them within 1 hour don’t fall for it. They say they are licensed in all 50 states, what does that mean? Which state do you have to look in first if something goes wrong? KEEP IT LOCAL; DON'T GET RIPPED-OFF BY SOMEONE IN WHO KNOWS WHERE WHICH YOU WOULD HAVE NO DIRECT ACCESS TO. Remember Buddha's advice: "Believe nothing, no matter where you read it or who has said it, not even if I have said it, unless it agrees with your own reason and your own common sense." You are the only "expert" you can trust: All brokers, and every other loan officer guru giving advice here with a .com or contact me at the end is "selling" you something (it’s not advice, its advertising). Don't buy "it." When shopping for a mortgage, here are a few things to do to maximize your savings and time: 1. When asking for a Good Faith Estimate(GFE), tell each mortgage originator (lender) what interest rate to use so you can compare apples to apples (rate affects closing costs). This is probably a different thought process for you because you always shop interest rates on a mortgage right? Remember all mortgage originators have identical wholesale interest rates. If you shop the same interest rate among mortgage originators, it levels the playing field and discloses what they want to charge you for their time to originate and close your mortgage. It is similar to shopping for a car. Why does the exact same new car vary in cost from one dealership to the next? Some dealers want to make more profit than others. 2. Secure Good Faith Estimates from various mortgage originators within a 4 hour time frame (rate and pricing can change daily and even multiple times in one day). 3. Do not compare the prepaids, reserves, escrow, title charges, and government recording sections of the estimates; third part fees are not controlled by the mortgage originator. 4. Ask each mortgage originator to base the interest rate on a 30 day lock unless you need longer. 5. If the loan allows you to waive escrow (paying taxes & insurance yourself), let the mortgage originators know because this will affect closing costs. 6. If refinancing, let the mortgage originators know if you are pulling cash out. A cash-out refinance usually increases closing costs. Your Biggest Challenge The mortgage industry today has never been more unethical. The industry has produced several record-breaking years in a row regarding total origination and as a result, greed is driving the industry. Your biggest challenge is receiving a Good Faith Estimate that is provided to you in "Good Faith"! We spend more time showing consumers how mortgage originators are lying to them in regards to an estimate given! That’s right, lying! “Bait and switch” has become a prominent sales tool in the mortgage industry. Bait you in with a bogus estimate then switch things after you are hooked. This is so discouraging; banks and so called direct lenders have become some of the worst at this practice. Education is your biggest weapon against this practice. Take the time to fully understand closing costs and rates before proceeding. You should know exactly how much the mortgage originator is getting paid by all sources (no matter where it comes from, it's ultimately coming out of your pocket). Protect yourself by asking for and receiving prior to application and origination a written guarantee stating the TOTAL amount of compensation (YSP, rebates, commissions, kickbacks) that will be received and kept by the mortgage originator. This will help assure that your best interest is kept in mind. Originating a mortgage is a service, not a product; compensation should not be based on the loan amount or interest rate. All ethical, honest, upfront, transparent mortgage originators will be more than willing to provide you with a written total compensation guarantee in addition to the (GFE) Good Faith Estimate (focus on the word “Estimate” because that is exactly what it is, an estimate of charges) prior to originating your loan.