Real Estate Secret #37: What You Can Authorize Your Agent To Do

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pen money and open bookThere are a lot of little behind the scenes Real Estate secrets that most people just don’t know. Some we’ve already talked about, like the existence of hijackers and the legal way people can spend your money after they buy your house.  Today’s little secret is about what you can authorize your agent to do.

Did you know you can authorize your Real Estate agent to do all the negotiation for you – even counter offer or close the deal – without your input? And it can be a big relief, or a big problem if you don’t know how to handle it.

Why You Might Want To Give That Authorization:

*If you’re too busy to take phone calls or sign papers
*If you do not like making decisions and prefer someone else do it for you
*If you trust your agent implicitly with your life, finances, and decision about the home in which you live

Why You Might Not Want To Give That Authorization:

*You want to be involved in choosing your home and how much you will pay for it

I can’t think of any situation in which I would recommend handing this power over to the agent. (Conflict of interest much?) If there is inability to meet these demands or make these decisions, that’s what trusted family and friends are for. I do not recommend handing over authority. I also prefer not to work with clients who want to assign this authority to me. I want to work with clients, not make their decisions for them.

Scary Truth: Some agents assume this power without their clients’ knowledge.
It really upsets me when I bring an offer to an agent who immediately rips it open (that’s for the clients to do, not the agent), and then proceeds to dismiss the offer without presenting it to their client. They assume decision-making power, and their client never knows the offer they missed out on. (or, if they do find out, it’s far too late) It happens often, and it really, really bothers me. A lot. That’s why I write – to let you know what’s happening and hopefully equip you with ways to protect yourself.

How can you protect yourself?  Unfortunately there is little chance you’ll catch a sneaky agent. The best protection is found waaaay at the beginning of the process when you’re choosing them in the first place. Be careful. Study them. Test them. Find agents of integrity. (I can recommend several!) Awareness and wisdom are really your best protection.

 

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