Props to Ardell at the Rain City Guide for another thought-provoking post, this one on the often contentious nature of the real estate transaction. In her comments, she speculates that all would be better served if agents and their clients would sit down to dinner and a drink. While I find the concept utopian and impractical, the message is a good one.
I took a lot of heat for a previous post on Property Inspections, for which I subsequesntly appologized and ate crow. Although my comments were intended as generic (unfortunately some thought otherwise), I now admit that my bedside manner was “stinky”. Ardell said more delicately what I was trying to say; the process has become unnecessarily combative between both principals and agents. In the words of Rodney King, “Why can’t we all just get along”? One reason, I suppose, is society. We and our children are programmed to be uber-competitive. For principals in the transaction, each side feels compelled to beat up on the other, to get the better “deal”… to win. Agents, for their part, tend to forget that their role is to bring the parties together to a mutually satisfying conclusion. Agents entrusted with delivering their client’s message and “defending” their best interests often confuse elevated emotions and harsh rhetoric with “tough negotiating skills”, and a swift closure to negotiations with “weakness”.
I unfortunately see more agents responsible for transactions going sideways than buyers and sellers, inciting riots along the way in the name of strong representation. True, as fiduciaries, we must sometimes go forth with a message or postiion which is not our own and that we do not necessarily agree with, but as professionals it is our job to keep a cool head and help the parites not lose sight of the goal by getting blinded by minutia and ill will. “If wishes were horses, then beggars would ride… and there would be no room for tinkers” indeed. But, then, if the home buying and selling process was without emotion, we would be dealing in commercial real estate.
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Tim
07.16.06 at 12:33 am
Great post. Although I work in a different market, I could not agree more. Go observe for a week in an escrow office and you’ll be completely shell shocked by the internal bickering and posturing between agents. It will blow you away how they mistreat support staff trying to help them with a smooth closing.
My wife was in a signing just the other day with a client who had to discuss a question with her agent. Her cell phone was turned up enough that we could hear the conversation across the table. No kidding, this is what the agent said: “i know, I know, escrow doesn’t get it, they don’t know what the hell they are talking about.”
And whom do you believe that was the one mistaken? To think this agent recommended our office to close the transaction. Unbelievable.
Kris Berg
07.16.06 at 7:16 am
I see this as we near closing all of the time. Something happens to potentially delay or disappoint, and the clients blame the agents, the agents blame the lenders, escrow, each other. It’s like a bunch of kids on the playground with no one willing to take responsibility (”It’s not my fault! Bobby did it!). The clients, of course, get stuck in the middle. As for escrow companies and your roles, I am reminded on a daily basis how hard you work for little or no recognition. Escrow is the goat when something goes wrong, and seldom recognized when things go as they should.
Steve Berg
07.17.06 at 2:07 pm
I think it’s worth emphasizing how important an escrow company is to a transaction. As a refresher, escrow companies are the “independent” third party whose job it is to ensure all of the transactional paperwork is completed and filed for the protection of all parties. They also coordinate the lender/financing/loan documents with the title company and ensure that the loan and deed records timely (in theory) and properly. Similarly, title companies are responsible for conducting the investigation which reveals any liens and/or other encumbrances to title (ownership) and, ultimately insures clean title to the buyer. If your escrow company/escrow officer is proactive, life will be good for all. If not, life can suck. Not all escrow companies are created equally. As in all professions, some are better than others. Experienced agents usually fight to name the ones they know and trust in a transaction. But, in some cases (such as a buyer who is in escrow with the home they are selling and needs a concurrent closing with the home they are buying) we do not have a choice.
Whether you are a buyer or a seller, it’s a good idea to discuss the subject (of escrow and title companies) with your agent early in the process. In addition to giving yourself the best opportunity to get great service and a smooth escrow, you will also have the chance to get the most competitive pricing.
Most transactions are typically emotional for both the buyer and the seller (and the agent). Having a top notch escrow company removes the potential for adding unecessary fuel to the emotional fire.