Wednesday, September 30, 2020

There is Only One Buyer Pool

Some people have a misconception about buyers.

They seem to believe that each real estate broker has a distinct set of buyers and those buyers are dependent on their particular broker.  So people think, let's deal with this broker or that broker because he or she has a certain set of buyers.  And further, perhaps if we change brokers, the new broker will have access to a new set of buyers.

I am not sure it ever worked that way, but today it surely does not.  Buyers, in the aggregate, are all looking at the same data.  Even if everything trickles through their broker (and today it often does not), the broker is sending them the same data that every other broker is sending to their own buyer clients.

What does this mean?  Well, in terms of searching for listed property, it means it does not really matter who you hire as a buyer's broker.  Assuming they are competent.  You get the same list of available properties as every other buyer.  For sellers, it means essentially, there is one large buyer pool.  Not many small pools.

If you are a seller, there may be many different reasons to change brokers.  But don't make the mistake of thinking:  A new broker will give us access to a new set of buyers.  Why?  Because, I assure you, if the new broker had a buyer for your property, he or she would have already brought them to you.  Brokers cannot hoard their buyers.

Okay, but what about unlisted properties?  Here, sure, there may be some broker who is aware of a buying opportunity that other brokers are not.  And hiring that broker as your buyer's agent will perhaps give you a leg up on the property.  But here's a question for you:  Do you want to hire a broker who will fail to serve his seller's best interest in order to serve his own?  Oh yes, you may get access to an unlisted property, but is that the type of broker you want to deal with?  If they will cheat their sellers, they will cheat their buyers.

Okay, okay, but what about unlisted properties where the seller has asked that the sale be kept quiet?  Yes, it does happen.  But it is rare enough that this factor should probably not be used in picking a competent, high integrity broker.

Which brings us to the final question:  If what you say is true, what difference does it make which buyer's agent we hire?  Well in terms of knowledge of and access to available properties that meet the buyer's criteria, none.  It is only after the buyer identifies a potential property that the buyer's agent earns their worth.

Choose wisely.

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