Sins of omission

An asking price is supposed to reflect the market value of a property -- and in enough cases it does or, at the least, isn’t too far from it.  There are, though, exceptions, and it’s part of my job as an Exclusive Buyer Broker (which means I no longer list properties but work solely for buyers) to recognize them.

Recently, in fact, I ran across three good examples of prices that were way out of line with what they ought to have been.  One was an industrial building listed at $600,000 when its value was two thirds of that figure.  Another was a lot with an old (sort of tear-down) house on it that was being offered privately for $550,000, even though it was worth no more than $350,000.  And the third was a house with a value of +/- $120,000 that came on the market with an asking price of $147,500.
Not too surprisingly, the building and the lot didn’t find buyers and, in my opinion, weren’t too likely to do so.  Tragically, however (as I see it anyway), the house did sell to an out-of-town buyer who paid $142,000 for it.  I can only hope that this purchaser knew he was paying well above the market value or doesn’t end up learning the truth the hard way.

The problem, of course, is the prevailing habit in the real estate business of seeing vendors as clients but treating buyers as customers.  This involves a fine distinction between what people are and aren’t told.  On the one hand, a client is entitled to what the law calls “full disclosure,” whether it’s asked for or not.  On the other hand, a customer will be given honest answers to questions, but only if they get put forward.
Thus, in the three cases I’ve mentioned, the property owners will, without doubt, have been advised that they were asking more than the market was likely to pay;  but prospective purchasers would be left in ignorance unless they made it an issue.
Needless to say, my enthusiasm for the Buyer Agency idea rests on the client relationship it establishes with a buyer, who then becomes entitled to the truth, the whole truth, and nothing but the truth.  It doesn’t necessarily mean that people are prevented from buying overpriced listings, but it certainly makes sure they are made aware of them. 

I cannot help wondering what the out-of-town buyer’s agent knew -- or bothered to find out -- for what I have to hope was a customer and not a client!

If you'd care to call and discuss any of these points with me, I'll be only too pleased to hear from you.
Thank you for your time.

Duncan Pollock, Real Estate Broker,
427 Gate Street, Niagara-on-the-Lake, Ontario, Canada L0S 1J0
Tel: 905-468-3154   Fax: 905-468-3812 Cellular:  905-704-9037
e-mail:  dsp.pru@sympatico.ca    website:  http://www.duncanpollock.com


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