I think that the homebuying process should be a partnership and total trust between the buyer and his agent. should exist.
Yes, I think that it's our responsibility to make sure the buyer gets the best deal. We are the ones that are the "pros". In your particular scenario, the agent should give all the options to the buyer. If the house is already priced as a bargain, meets all the buyer's needs, is in a great location, has just been listed, it is likely that it will sell fast and if it's within the buyer's price range, then the buyer should make an aggressive offer. There are also the emotional strings... If the buyer is compromising simply because of the price, the listing may be stale, then a discussion about a lower offer should take place.
The agents responsibility is to do the best job possible for his client in exchange for compensation, no different than any other service provider. What the client expects? Supposedly you discuss the reality of what he can expect before moving on to providing a service.
Just my opinion, worth about 2 cents, Dunes
Question two: negotiate as if you were buying it
We should always assume that the buyer doesn't know anything about real estate or negotiating and inform them accordingly. We are not the one making the purchase. They need to be as informed as possible.
The way you phrased it the second time, yes. But I don't think that would be considered us ensuring a buyer a 'good deal'. That is giving sound advice, it is ultimately up to the buyer as to what they want to pay for the property. That's my opinion.
Who knows what the market is going to do from day to day or week to week. Even if we pull comps that are more recent than 6 months ago to help give our clients a better idea of what is happening right now we can not ensure that it will still be a 'good deal' 2 months or 2 years from now. Anyhow, just saying that there is a difference between getting a 'good deal' which IMO is a vague and can be misleading statement and fighting for their best interest compared to what recent data is showing.
Negotiating our clients best interest is part of our duties and shouldn't be an option of whether or not it is right to do. Not giving clients comps on a property or making sure that they have all of the information they need to make a well informed decision is not in their best interest and if it is not our responsibility to handle that part, then whos is it and where would they get the information? (If we were to answer your question backwards) :) What clients do with the information is a different story.
Very interesting question though. Good seeing you over here on Trulia.
Who are we to determine what a "good deal" is? How about all the agents in Southern Cal from 3 years ago who got their clients homes under list price when prices were going up 20% a year. Did they get their clients a "deal"? I am deal driven myself and let my clients know that up front. I tell them as who am I to put a price on a prestigious neighborhood, or the wife's happiness, or the chance to meet a different neighborhood, or have their kid go to a different schoool. How will we know that a serial killer will move in next door next month. I think we have to be very careful and in fact perhaps it is even dangerous to profess that it is your responsibility to the client to get a good deal. Just as is beauty....the definition of a "good deal" is in the eye or mind of the beholder.
Consultants are trained to help equip their clients to make well-informed decisions--but not to make that decision for their clients. And the reason why is only the client will sign his/her/their name(s) on the dotted-line, so only the client should make that decision.
Keep in mind, few people are as upset with the Dick Fuld's consultants as they are with him about Lehman's collapse. He was the CEO, and the buck rightfully should have stopped on his desk. Similarly, the property, if acquired will become the client's asset, so the client should be--and is--ultimately responsible for the outcome.
We do what our client directs us to do. It is not our job to make the decisions for you, but to give you the knowledge for you to make the decision. If I thought the home was overpriced, I would tell you that and by how much so you could offer what you wanted to offer. If I thought it likely that a 90K offer would be accepted, I would advise you offer that much. But again, if you had to have the home, it was listed at $100k and my market analysis showed it to be worth 95K and would likely sell for 95K, I would advise you offer close to 95K.
Your motivation is everything, despite the fact that it sounds like an article from a magazine. We are here to do what is in your best interests. It is rarely in your best interests to overpay, but sometimes it is in your best interests to offer close to what it is worth, or more.
Case in point: I had a client I was working with for a very long time. She was OK waiting on things, so we had put in a few low offers on homes and negotiated hard to try and get them low despite the seller's market we had here this past spring/summer. This one home came on the market I knew she would like, so we saw it within an hour of it coming on. We were one of 4 parties that saw it in the first 2 hours. She loved it and HAD to have it. I knew it was priced just about on point, and knew there was another offer coming in, so we offered 5K OVER asking. She lost out on the home because all 4 parties offered on the home and someone offer 7K over asking.
So, in the cases where she did not have to have the home and it was in her best interests to try to get a deal (her desires) we did so, but when she had to have it, we put our efforts towards that goal.
If your goal is to buy a home for a great deal and you have no time restraints, we will try to accomplish that. If you have to have a home under contract next week and want the best deal ever, we will try to accomplish that as well, but your primary goal is to get into a home, so our efforts will be to that end.
What we do is based on what your needs are. I will likely not advise a client who needs to get a home right away to negotiate hardball if that is the only home they find that fits their needs and they cannot wait for more to hit the market. The primary focus at that point is to get them into the home. We will try for the best price possible, but if you have to have it, sometimes the best price isn't possible. A home will only sell for what a seller is willing to take, and hopefully, they have a good listing agent to keep their feet rooted in reality.
Hope this helps!
A good deal is something that only the buyer or seller should have the ability to determine. An agents impression of a "good deal" may not fit their expectations.
Your main job as being an agent is to make sure your clients are making a good decision. We as Realtors are told to keep our opinions to ourselves. I have never agreed to that because if the home is priced correctly with the comps "you will find", and the home is next to a city dump station I would tell them not to purchase this home and I would find them the perfect home that has a good re-sale prospect .
Mitch Grooms Atlanta Realtor
"Posed with a situation where a foreclosure home is for sale at $100,000 and the buyer is prepared to offer list, but you as an agent know from your expertise that there's a good chance the Buyer may be able to get it at $90k -- What do you do? Do you opt for the safer list price offer or take a chance and try to get your client a deal?"