Agent’s priority is client, not self

By John Adams

For the AJC

If you have never sold real estate for a living, it can be hard to understand our job. Real estate agents in Georgia are among the most professional I have encountered, and most of them maintain an up-to-date professional education and take their responsibilities very seriously.

Here are some of the misconceptions I hear about real estate agents. I have taken the liberty of responding to each with my opinion.

● Because agents are usually paid a percentage of the selling price, the agent has a vested interest in seeing the price go as high as possible, and therefore is often in conflict with a buyer’s best interests.

The reality is somewhat different. Successful agents achieve and maintain their clientele largely through referrals of satisfied clients. The only way to prosper in real estate sales is to earn repeat business, and you can’t get that kind of loyalty by betraying your client.

Yes, the real estate agent’s job is to help the buyer and seller achieve a meeting of the minds. But no, most agents are much more focused on helping their clients and customers achieve their goals than they are about a few extra dollars of commission income.

● Agents often receive kickbacks from mortgage companies, attorneys and insurance companies. As a result, they are likely to steer you to their favorite source instead of what is best for you.

While it is true that some real estate companies have contractual relationships with certain service providers, they are required to disclose these arrangements in writing to their clients at the time they are recommended. They are called “controlled business arrangements,” and can allow for the negotiation of lower fees and/or enhanced services for clients who choose them.

In addition, agents would be shooting themselves in the foot if they steered business to a particular source and that source ended up wrecking the sale. It’s just bad business to lose a commission in hopes of picking up a small referral fee.

● Since most agents receive continuing education classes on contracts and negotiations, you can count on them to give good legal advice when it comes to making offers and reviewing documents.

This is a major myth, and serves the interests of no one.

Real estate agents are trained in contract forms and how to fill them out. But real estate agents are not licensed to practice law and are not qualified to give legal advice.

Agents are allowed to fill out forms and assist you in drawing up your offer. They are not allowed to write contracts or interpret legal documents.

Real estate professionals are responsible for performing many tasks, but chief among them is serving you and meeting your needs. When you find a good one, stick with them.

John Adams is an author, broadcaster and investor. He answers real estate questions on WGKA-AM (920) at noon Saturdays. For more information or to make a comment, visit www.money99.com.