The Buyer Who Paid Too Much!”
A Cautionary Tale
Earlier this year, a couple of local real
estate agents scored a major coup, the sale of a luxury home for
$2.55 million. What made
the sale particularly profitable for them was the fact that, because
there was no buyer’s agent involved to split it with, they got to
“double dip” the sizable commission and keep both ends for
themselves and their broker.
A great day for the agents.
Considering the price, an even better one for the sellers.
How about the buyers?
Well, not so great.
If you believe that “what you don’t know can’t
hurt you”, think again.
Because the buyers did not have their own agent representing them
exclusively, they probably had no idea that for over four months at
the end of 2005, when the market for luxury homes was much stronger than in
early 2008, the home was listed for sale with a different agent for
$1.975 million.
Yet, the buyers paid $2.55 million.
That’s nearly $600,000 above the original asking price.
Adding insult to injury, they did so at a time
when desperate sellers would have been grateful to get anything
close to their asking prices.
Background.
Considered a bit too pricey at the time
- back in 2005 - by many
agents in the know, the house went unsold.
It went off the market, to
return in mid 2007 with new agents – and no significant changes in
the property – just as the luxury market was about to tank – for
$2.875 million.
Those agents performed something of a miracle
for the seller in getting the property sold for $575,000 more than
the previous list price – at a time when the luxury home market was
at its lowest ebb.
Again, great for the agents and the seller, but
a very expensive turn of events for the buyers.
It’s not clear whether the buyers were entirely
unrepresented or were given the option of Dual Agency by the listing
agents. Most likely the
latter. In either case
they did not have the benefit of independent representation by an
exclusive buyer’s agent.
Any such buyer’s agent would have been sure to have done his or her
homework and passed on the property’s listing history and Sedona’s
general market conditions to the buyer and bargained far more
aggressively – perhaps saving the buyer at least an extra $500,000
or $600,000.
As it was, without someone to represent their
interests exclusively, the buyers might well have thought they were
a getting a good deal by getting the price down from $2.875 million
to $2.55 million. Were
they given the information about the previous list price?
We can’t say for sure.
If they were, though, one would have to conclude that the
listing agents were indeed phenomenal salespeople to have persuaded
the buyers to pass up an additional half million or so that they
might otherwise have saved.
Now…The
Good News…
Fortunately, Sedona is one of the few places in
the country that has Certified Exclusive Buyer’s Agents who work only for buyers – never the sellers.
That means no double dipping (dual agency) or conflicts of
interest.
Spearheading this revolution against the “Buyer
Beware” mindset of the conventional real estate business model, is
Buyer Brokers Realty of Sedona & Flagstaff and its president, Dr.
Roy Grimm. The agency
boasts a highly successful fourteen year track record of buyers-only
representation and unparalleled service.
Despite being a small firm with a very personal touch, it is
one of the top producing companies in Northern Arizona
and the number one Exclusive Buyer’s
Agency in the state.
Mavericks though they are, Roy and his crack team of elite agents
are members of the Sedona and Flagstaff associations of Realtors®
and are highly regarded by their peers. They currently occupy the
top two positions for buyer’s agent market share by a wide margin in
Sedona and the Verde Valley. Furthermore,
Roy was recently elected
President-Elect of the Sedona Luxury Real Estate Professionals.
They’ve clearly earned the respect of their colleagues and their
clients and, given the opportunity, they’ll earn yours as well.
For more information and their free relocation
packet contact Roy at: Roy@SedonaRealEstate.com or call him at (800) 282-2959.
A host of satisfied customers...
“How can I ever thank you enough for all that you’ve done
for me since I met you... your caring about me is more than one could ask for. I’ll always be
grateful.”
– Anne Rhinehart
“God bless you. We’re very happy with our new home and we
couldn’t have done it without you.”
– Maria & Salvador Casteneda
“Over and above the call of duty... We highly recommend
Buyer Brokers as courteous professionals with well established
networks in the community, much energy and awareness of the
needs and wants of prospective homeowners.”
– Ida Pierce, MD
“I’m ecstatic with my new home... The Buyer Brokers folks
are not only thorough, but wonderful people to be around. They
represented me perfectly; I highly recommend their services.”
– Marty Birrittella
“Buyer Brokers personalization of the entire procedure was
very much appreciated. They worked hard to understand our likes
and dislikes, made us feel very special, and made the viewing
and property purchasing a very positive experience.”
– Joyce and Bob Harris, MD
“Congratulations, Buyer Brokers! You guys make a great team!
Nasser and I have not stopped talking about what a great
experience our property purchase was in Sedona.”
– Nancy & Nasser Bashiri
“Roy is a consummate professional. He anticipated our needs
and took positive steps to meet them. We never thought that Roy
had anything more important on his calendar than to help us.
Property buyers should seek agents who represent only buyers and Roy admirably fills that
requirement. When the deal was closed both of us felt that we
had made a good friend.”
– Sally and Bob Kohrs
“Roy is a friendly, easy going person who is more than an
agent. He is a helper and a friend. His preparation and service
were the keys to our ability to come to Sedona and buy a
spectacular Sedona home in only three days.”
– Elizabeth and Bill Sweeney, Ph.D.
“Buyer Brokers always had our best interests at heart. Roy
is very knowledgeable, personable, honest, and accessible. He
was wonderful!”
– Judge Stanley and Jennifer Levine
“Roy Grimm is the best buyer’s agent in the world. “Above
and Beyond” is Roy’s motto, I’m sure. Not only did he do what we
might have expected, but tenfold more. I would never consider
using another agent for Sedona real estate.”
– Lin Will
“We are thoroughly delighted with our purchase and we owe
much to your savvy and negotiating skills."
– Dr. Laura Vailas
It was a joy to move, thanks to you."
- Guy & Cindy Forsythe
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