A blog reader from Santa Maria sent me the following that he recevied in his mail.
“Dear Homeowner, I have a client looking for a home in your neighborhood and I’m wondering if you are ready to sell, or have plans in the next six months? My client is pre-approved for her financing and is currently a homeowner, but does not need to sell in order to buy. She is ready to make a decision rightaway, providing the home is right for her. If you have interest in putting a deal together, please give me a call, and let’s see what we can negotiate”.
This could be an example of the classic “How to Generate Leads in your Farm Area”. Does this agent really have a buyer interested in a home in this neighborhood? Or as our Blog reader says “I assume one would call the broker – the mysterious woman would have found a place, and you would then have the broker wanting to list your home and promise another excited buyer soon!!!!” Not saying what the Buyer is looking for in the home that is “right for her” does make you wonder if there is such a Buyer. I hope there is really a Buyer as the Realtor Codes of Ethics says you need to be truthful in your advertising.
Ok, let’s believe that the agent does have this wonderful Buyer that has enough wealth to own 2 houses. If you were really interested in selling your home, wouldn’t you want to put it on the market and see if there other Buyers out there rather than doing a negotiation with just one party?
Also, I wouldn’t have one agent represent both the Buyer and Seller in negotiations. One of the reasons you hire a professional Realtor is to represent YOU. How can you be sure that you are getting the best representation when the agent also has a fidiciary responsibility to represent the other party in the transaction too? If they favor one party in the transaction, the Realtor could get sued. But, it’s a risk some Realtors will take since they see that big commission paycheck for “double-ending” the transaction.