With a notable percentage of second homeowners on Cape Cod living inside of a three hour commute from their primary residence, lockbox agents, born through pre-existing relationships, have been on the rise. The inspiration for this particular blog was born from my passing a listing, daily, for the past three weeks where the glaring lack of curb appeal was exacerbated by the grass finally taking over the height of the real estate sign on the street.
On the listing side, a trip to the Cape to snap some pictures and hang a lockbox is where it begins. As no agent is driving hours to facilitate a showing, the protocol is to greet each showing request with a lockbox combination. I have represented a number of buyers where I never, from initial contact to closing, met the listing agent/broker. These agents are typically family or friends who were awarded the listing based entirely on those relationships. Among the many downsides to this otherwise gratuitous if not obligatory reward is that more often than not, out of sight out of mind becomes a tremendous detriment to the homeowner.
Born and raised on the lower Cape as a third generation builder, I simply could not, responsibly, answer a fundamental question about Falmouth or Mashpee. While I enjoy a vast network of plumbers, electricians, attorneys and septic contractors to name but a few, I couldn’t conjure up a name or a business on the other end of the Cape. For the seller, onsite representation is essential as a local agent or broker may not only speak to issues or concerns regarding the property or immediate area but call upon local resources to satisfy answers that may not be readily available or require a niche/professional opinion. Selling a home based on pretty pictures on the internet while leaving buyer agents and/or unrepresented buyers to their devices is simply shorting your pursuit toward a maximum return. While my building background affords me the ability to speak to, defend or propose a qualified solution to any number of deficiencies, selling requires genuine interaction.
In recent years, two distinct off Cape brokerages have created a cottage industry where for a comparative pittance, +/-$300-$500, less than my out of pocket contribution for my professional photographer, these brokerages offer this flat fee in exchange for uploading the listing to MLS via a for sale by owner proxy which speaks entirely to the notion of getting what one pays for. In these cases, showings are granted via lockbox and often times a Facetime showing is a part of the offering.
On the buyer side of the tracks, there have been several cases where upon executing an agreeable offer, my resources were then called upon to coordinate a septic inspection, update smoke and CO detectors to be code compliant, grant access to the fire inspector because Aunt Milly’s co-worker’s boyfriend, a licensed agent out of Billerica, doesn’t have resources in the area let alone the time to drive to the Cape. I’ve had many an occasion where an off Cape agent will call, set up a showing, then note why he or she has a conflict where I will end up showing the home to an otherwise unrepresented buyer. Once the off Cape agent has completed the daunting task of filling out a boilerplate offer, the next scheduling conflict is often that of the home inspection where again, the buyer is unrepresented.
Two areas of abundance on Cape Cod include self-professed blue ribbon clam chowder winners and real estate agents and, on both scores, some are quite good. In the case of seller and buyer representation, it is vital to understand what you are receiving in return for investing 2.5-3% in a listing brokerage or financing the same range on behalf of an absentee representative based entirely on association.
I had a recent listing that closed where the buyer agent, whom I have yet to meet and don’t anticipate having the privilege anytime soon, enjoyed 2.5% of $1.45 million for setting up a showing that I entertained exclusively. Shortly after closing, the buyers engaged me in a management capacity going forward and just recently capitalized on several of my local resources that have satisfied their wish list. As each of my sellers are aware, I do not impose a buyer broker fee should I procure the buyer. In this case, the buyers effectively financed $36,250 for someone making a phone call and would be entirely lacking in the ability to direct the buyers toward time tested resources.
Two weeks ago, I took a call from a Boston based agent who on 24 hours’ notice requested a Sunday morning showing. When I responded noting that I would see her there at 9, I was told that she was out of state on vacation. During the walkthrough, I would discover that there was virtually zero association with the agent. The buyers saw the listing on a website, clicked “set up a tour” and an unknown entity answered the bell, set up a time and hoped for the best.
If you are in the market to sell with an eye on maximizing the best return on your investment, do consider one of the area’s local and qualified agents or brokers. Should a sense of obligation compel you to invest in an off Cape individual or entity, do make certain you understand exactly what the commitment is.
In the market to purchase? Understanding the commitment in exchange for your return on investment, to say nothing of establishing a reliable partner for service after the sale in any number of capacities is equally vital.
