“Getting nipped by a puppy is no big deal – unless that puppy gets a taste for your blood.”
That’s bidding wars, and it’s less the agents’ skills than the buyers’ frenzy.
But what that frenzy means is that it is beyond foolish to sell to iBuyers or any other sort of “instant” cash buyers right now. It can make sense to go to a pawnshop when no one else is buying. But when everyone is buying, not taking a very brief test of the marketplace is a betrayal of your own estate.
And here’s what’s funny: The iBuyers know that. They know that it is a mistake for you to sell to them right now. They know you are leaving at least 5% of your hard-won money on the table by trafficking with pawnbrokers.
Why is it funny? All real estate licensees are fiduciary. Deliberately leading a client into error is a fiduciary violation. Replicated hundreds or thousands of times a year. Per iBuyer.
Their buy-boxes redline. Their marketing targets only nerds – hugely exclusive by disproportionate impact. And every house they buy is another opportunity to ignite a national class action suit.
Oh, and the Vampire Party is hungry. Very hungry…
Yesterday on BloodhoundBlog:
Brian Brady: What Professor Alexander Kurov Gets Wrong About Gamestop and Bubbles.
In other news:
Housing Wire: Mortgage rates continue to stay low at 2.73%.
Redfin: Asking Prices Hit a New High, Up 10% From Last Year.
Housing Wire: Urban home values growing faster than ‘burbs in Midwest. This is more of Redfin hiding the riots, FWIW: Most “cities” are mainly suburban. What’s going on where the riots actually hit?
John Hinderaker: Democratic Governors Have Devastated Their States.
Glenn Reynolds: Why are Democrats so scared of Donald Trump when they just defeated him?
Ron Paul: Libertarian “Domestic Terrorists”?
Brian Brady says:
If the licensee representing the iBuyer discloses that he/she only represents the buyer, and in that disclosure explains that the seller has the right to retain the services of a real estate broker, shouldn’t that suffice?
I think it’s foolish, especially now, for a seller to not retain the services of a professional REALTOR but I don’t want to throw out single-agency in the process
February 5, 2021 — 10:36 am
Greg Swann says:
For 10 years, at least, we have taught that agency is determined by the principal, not the agent. If I believe you are helping me, you are my agent. If you insist you are not and yet you advise me or direct my actions in any way, you are my agent. In Arizona, if you summarize a document and I don’t read it, you are bound by your summary.
It is beyond doubt that principals are being deliberately misled by licensees. All it takes is one judge to turn customers into clients – which they clearly are, simply by the asymmetrical power of the parties.
If you want to be a real estate investor, lose the license. A self-represented licensee is already on thin ice.
February 5, 2021 — 10:52 am
Brian Brady says:
I think I am lost here.
Joe the Plumber owns a house and I represent a client who buys homes like Joe’s. I tell Joe that I am a broker, representing a client who is willing to buy a home like Joe’s– Joe says. ” Fine, come and look at it and make me an offer.”
My client wants Joe’s house. I tell Joe the Plumber that I am my client’s shark ONLY and Joe can hire his own shark. Joe declines representation
I don’t know how Joe the Plumber could claim I have any fiduciary duty to him
February 5, 2021 — 12:17 pm
Greg Swann says:
Put it on your CE list: How licensees can inadvertently create agency. It’s not a big deal for you or me. For brokers with deep pockets, it’s a great white shark.
Like this, plaintiff’s attorney to plaintiff:
It will take a while, but they’re screwed.
February 5, 2021 — 12:47 pm