Working with out of area real estate agents.

I've been seeing houses for sale with out of area real estate agents, and buyers working with out of area real estate agents more and more. And I think it's a bad idea for any home seller or buyer to do this.

Why would someone list their home with an out of area real estate agent?

One reason could be that the agent is their friend or relative. Or maybe a friend or relative recommended the agent.

Why would a buyer work with an out of town agent?

Maybe for one of the same reasons as above. Also, if they are selling their home in another city and relocating the agent they are selling with being entirely to money hungry tries to get them to let him/her help them find their new home.

Why is working with an out of town agent a bad thing?

It's bad for home sellers to work with out of area agents because:

The agent is not going to be available to show the home very often. When a prospective buyer calls on the sign or an ad and wants to view the homes inside, the agent doesn't live in town so they won't be able to show the home and will try to set an appointment for a later date. Or, your agent will call a local agent and give the lead to them in return for a referral fee if that person ends up buying a home(even if it's not your home).

So the prospective buyer may call on another sign and that agent will show the home they are selling and will also show your home. The other agent who ends up showing your home will try harder to sell his/her listing over yours so they can get a double commission. After all that agent doesn't work for you therefore has no fiduciary duty to you and selling your home.

Also, The out of area agent may not know exactly what is going on in your local real estate market and may recommend a price that is to high or to low. If you list your home to high your house will not sell and probably won't even get any showings. if you list to low you will be loosing money.

It's bad for home buyer work with out of area agents because:

For one, the agent may not be aware of the current market conditions in the area you are looking. Which will put him/her at a dis-advantage when negotiating the sale. You may end up paying more for your new home than if you were working with a local agent. Your out of area agent may even have difficulty obtaining access to homes due to the electronic lock boxes that may be different to than the lock boxes used in his/her area. In my town sentri lock boxes are common and require a card that must be updated weekly. These lock boxes also have contractor codes that don't require a key but agents often forget to turn that function on. So you end up skipping the house that may have been exactly what you were looking for.

__________________________________

Maybe you talked to an agent from your local real estate office and didn't like that particular agent for whatever reason. This is not a good reason to work with an out of town agent. Most real estate offices have many agents and if you don't like one of them that doesn't mean you won't like them all. There are many real estate agents and they are all different people. Don't assume they are all the same. There is an agent that is right for you, you just have to find them.



Your house will sell eventually if it's priced right for the current market conditions in your area.

Happy House Hunting