The following is an interpretation of the comments the author heard on material discussed on the Barry and Larry Radio show on Oct. 6, 2018, from the 8:00 am show on KHOW630
Host: A two-hour boot camp presentation about the 10 steps in buying and selling homes will happen on Oct. 27, 2018. The boot camp will help educate consumers to be prepared in the home buying or selling process. It will guide consumers to understand the entire process and control the transaction. Thus, guiding consumers on what’s coming next, and what to do next.
The two big myths of the real estate industry that will also be discussed in the seminar:
- Real estate agent’s commissions aren’t negotiable.
- Contracts have to be many months long.
Listen to the whole radio show here:
The Agent’s Fiduciary Responsibilities
Host: Fiduciary responsibility is a legal term that means agents are legally required to put consumer’s interest ahead of their own interest.
Example: If a consumer is buying a home and the buyer’s agent mostly shows houses that are listed by his firm, then that agent is not putting consumer’s interest ahead of his own. If the consumer buys a home listed by the agent’s firm, the agent will get a tangible bonus. This only means the agent is working to get extra money for himself rather than working for the buyer.
Author comment: A conflict of interest is clearly shown here. The consumer’s wants and needs are disregarded. The agent’s goal is just to sell a house under his company’s listing, so he can get a bonus whether or not it fits the consumer’s needs.
How to avoid this: Carefully interview agents and ask them about their fiduciary responsibilities and what fiduciary means to them. Their reactions will be the answer.
Author comment: The hosts encourage consumers to report agents who don’t perform their fiduciary duties. In Colorado, there’s a Department of Regulatory Agency under the Colorado Real Estate Commission. Consumers may report to this department to inform them about the illegal practice.
Host: Part of the buying process is knowing the material defects of the home. This is a crucial step of the process. This will help consumers know the priorities in the home, and who are they going to call to fix them.
A guest speaker, Tom Gould of WIN Home Inspection advised consumers to go to the inspections, listen to what the inspector says, take notes and use the report.
Five Major Portions of the House
- Foundation of the house
- Heating, ventilation and air-conditioning (HVAC)
*Sewer scope and radon tests are optional tests.
Guest: If the consumer is living in the house for longer than 6 years, a major inspection with the 5 major parts of the house would be advisable. For furnace and air-conditioning, service and clean them once a year. Hire a reputable HVAC company to do the annual clean- up & inspection, and watch what they do.
Finding the best and right agents
For over 20 years, Kathleen Chiras of the SmartHomeSearch Network has been helping consumers find the best agents that match their wants and needs. She interviews consumers about their wants and needs, and helps them interview agents.
Kathleen added that, “The right agent will hold the client’s values and needs above their own. We select top agents by picking agents throughout the United States that have fiduciary responsibilities. Integrity is also important.”
Author comment: The relationship between the consumer and the agent will be the key to a smooth and effective buying or selling process. The best and right agents will guide the consumers in the entire transaction and will be their advocates in the home buying or selling process.