Is it a conflict of interest for your real estate agent to suggest vendors to help close your home deal? That’s a question that I’ve been asked a time or two. Should you be using your agent’s vendors?
For example, should a home buyer use an internet lender, such as Quicken loans, or should they use a local bank or mortgage broker? Although an internet lender may have a slightly higher cost than a local lender, the service that you will receive is probably not going to be on par, compared to a local lender. Local lenders are usually willing to give the agent their cell number. They are also usually willing to write a last minute pre-approval letter. If you find the perfect house on a Friday night, good luck in getting an internet lender to answer the phone. You won’t even have a weekend number, most likely.
Another issue with internet lenders is if they don’t call you back, you have no recourse. If a local lender was trying to dodge calls, I could go to his office and get much needed answers. That’s not possible with internet lenders located in Topeka or other long distance locations.
Other vendors are also needed to close a house deal. Vendors such as plumbers, termite and home inspectors, and a handyman can make the closing difficult or easy. A vendor that your agent uses on other deals is more motivated to do a good job and go the extra mile. They want to please the real estate agent and they want the agent to send more business their way. That’s not going to happen if they don’t do a good job with your home.
The home inspector that I use is the most thorough inspector that I know. I use him because I WANT my clients to know about any issues in their prospective home. On a couple of occasions, I’ve heard a client say “I don’t want to use a home inspector recommended by an agent. They may be in ‘cahoots’ with each other.” I would suggest that if you don’t trust your agent, find one that you can trust, and then trust who they recommend.
My inspector has given information that caused a deal to fall through with my clients on a couple of occasions. I’m ok with that. It’s important for my clients to have ALL the information and be able to make a good decision.
I encourage you to use vendors that your agent suggests. You’ll have a smoother closing if you do!
Eddie Poole: Hey, everybody. It takes a whole team of people working together to get a house deal done. I’m Eddie Poole with Keller Williams Realty. Now should you use the people that your agent recommends for things like your loan, for your handyman, for your closing company? Well, I think there are advantages to doing that.
Let’s take the lender, for example. Now your agent probably has relationships with local lenders. One of the most important things in closing house is communication. With a local lender, if someone doesn’t call me back, I’m going to go knock on their door and say, “Why are you not calling me back?” Further, I’ll probably have their cell phone number, and I can call them on a Saturday night. Try that with an internet lender. That’s not going to happen. With an internet lender, if they don’t call you back, it’s tough luck for you, and try reaching them on a Saturday night.
Now as far as title company and for handymen, plumbers, other vendors … They all want to please your agent, and usually they’re willing to go the extra mile because they’re going to want to get more business from your agent. And me? If they don’t do a good job for one of my clients, I’m not going to be sending them more of the clients, so they want to please me, and they want to please your agent.
If you’ve got any questions about why you should use a vendor that’s related to your real estate agent, give me a call. Anything else. I’m Eddie Poole with Keller Williams Realty. I love to lead people home. Call me.