The Endowment Effect By Jim Palmer Jr.

Many real estate buyers seem reluctant to obligate their loyalty to any one real estate agent. One reason may be that they have the listing information available at their fingertips and don’t see the need to commit to one agent. That is fine until they want to view the listed properties or write an offer. They may get the mistaken impression that all brokers will jump and run to show any listed properties without any obligation on their part to connect with a Realtor®. When they decide to make a move on a property, they seem to place more emphasis on a broker’s availability instead of capability.

This impression may be caused by the fact that most listing brokers will show their properties to any buyer because they feel an obligation to their seller client. The new agency law allows listing brokers to show their listings to buyers without first signing a Buyer Representation Agreement because they are representing the seller and not the buyer. If they choose to represent a buyer, the listing broker must first sign a Buyer Representation Agreement with that buyer, so long as seller and buyer have agreed to allow dual agency.

If you are uncomfortable with dual agency, don’t be afraid to hire a buyer broker. Just because the listing broker has all the answers doesn’t mean that a buyer broker couldn’t get up to speed quickly and probably could be more aggressive in advocating your cause.

One of the main complaints levied against Realtors® in general is that they don’t respond to phone calls or internet requests as quickly as some think they ought to. One of the contributing factors to this shortcoming is that brokers have become gun shy, feeling abused by an ever-increasing-number of buyers who refuse to commit. It seems reasonable that if an agent had the assurance of a written agency agreement, their interest in that buyer might increase dramatically!

The recent changes to the Agency Law in WA State make it mandatory for a buyer broker to have a written representation agreement before they can cross the threshold of a property. Even so, many of those agreements are non-exclusive and brokers are routinely abandoned by fickle buyers.

Remember that loyalty begets loyalty! Carefully choose a professional and make it known to them that you will be loyal. Realtors often work hard with little assurance of reward, so give them that assurance and see what happens!

Past Articles

The Endowment Effect
When something goes awry after the close of a real estate transaction, the first person on the list of who-to-call-for-a-solution ... MORE...

 

Who Enforces the Contract?When something goes awry after the close of a real estate transaction, the first person on the list of who-to-call-for-a-solution ... MORE...

Buying A Fixer
For some reason buyers seem fascinated by real estate ads that promote dilapidated houses that need to be fixed up ... MORE...

 

 

 

Old Fashioned
On a busy work day, I needed a quick lunch so I motored through a McDonald’s drive-through for a burger ... MORE...

Archaelogical Artifacts
A few years ago in Stevens County the owner of a subdivision was forced to cease his ground work ... MORE...

To Fix or Not to Fix, That is the Question?
Realtors® are often asked by potential sellers what they would recommend to be fixed prior to the seller putting their home on the market.  ... MORE...

 

Why Can't it Just be Fair?
Recently I attended a class designed to instruct Realtors® on Fair Housing Laws.  ... MORE...

Can Be Sold As-Is?
The other day an inquiry came across my desk concerning a fence encroachment... MORE...

 

 

Adverse Possesion
The other day an inquiry came across my desk concerning a fence... MORE...

 

Market Update
Real Estate brokers are frequently asked, “How is the market?  What do you think it will do?”  .... MORE...

 

 

Hydro-Fractures, Just Good Science
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Are You Under Insured?
Since your home is most likely the largest purchase you will ever make, you should be sure to protect that investment.... MORE...

Broker Pay
Having spent decades in the real estate profession as a Designated-Managing Broker/Owner .... MORE...

 

The Committee
Brokers sometimes lovingly refer to multiple clients as “The Committee”, which could include .... MORE...

 

Location, Location, Location
After traveling some distance from my office today to a remote location to do a visual walk through of a 10 acre parcel .... MORE...

Another Sneaky Tax
Starting July 27, 2025, any buyer of a residential property, who uses a loan to purchase. .... MORE...

 

Easement, a Property Right
Property rights seem to be an ongoing hot topic since there are many people.... MORE...

Apparisal vs Market Analysis
Many property owners find the need to have a professional .... MORE...

Bountry Disputes
Some property owners are alarmingly indifferent about dealing with boundary disputes .... MORE...

Don't Give it Away 
Designated Brokers (the firm’s boss) periodically receive calls after closings from disgruntled buyers or their agents.... MORE...

Don't Give it Away 
The airwaves and internet reels these days are full of persistent ads by predatory home buyers.... MORE...

 

Avoid Expensive Mistakes
A few years ago a property owner became entangled in an unfortunate.... MORE...

 

Home Buying Qualifications
Selling a home can be a process fraught with frustration.... MORE...

 

Black Mold?
So, you have black mold in some of the corners of your house?.. MORE...

 

Why Purchase Title Insurance?
In a recent personal transaction where a buyer was purchasing... MORE...

Why Experts Get Paid More
After moving around the world a lot, a middle-aged woman  felt she knew a thing or two about selling.. MORE...

 

 

Attorneys, A Vital Resource
While reading a Client Review concerning a closed transaction, I noticed... MORE...

Is Your County Looking Out for You?
During a recent residential acreage sale, a well was tested for quality ... MORE...

Buyer Misconceptions
In a recent case, a buyer fired their broker because they misunderstood the buying process and ... MORE...

Buyer Expectations Unrealistic?
After several years of a seller’s market where sellers had most of the... MORE...

Accurate Market Anaylsis
Brokers are often asked by potential sellers to give a valuation of their property, especially early  in the year before the market... MORE...

Good News for USDA Loans
Many buyers know that there are zero-down-payment loans available for Veterans .... MORE...

Homeowners Insurance
Beginning a successful real estate career is quite difficult for most new brokers for a lot of reasons.... MORE...

Homeowners Insurance
One of the burdens that buyers are facing in the coming year is the rising cost of homeownership... MORE...

Top 6 Real Estate Issues
The last two years has seen an unusual lull in the real estate market.  Instead of a typical... MORE...

Artesian Wells
There are some misconceptions concerning water wells that have been perpetuated for years, one of which concerns artesian wells. The fact that property has an... MORE...

Contract Performance
Invariably after real estate transactions are closed there are issues that surface where one of the principles is not happy because the contract... MORE...

Thinking of Buying a Home in the Country?
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Bird's-Eye View
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Will Your Property Sell in the Winter?
Most sellers remove their house or property  from the market in the winter... MORE...

Rules of Engagement?
Buyers competing to purchase real estate can be frustrated at best and exasperated.. MORE...

Rules of Engagement?
Buyers competing to purchase real estate can be frustrated at best and exasperated.. MORE...

Truth Telling
Have you ever been around someone who always starts out their sentences with, “Honestly“... MORE...
 

Flush and Forget
As my wife can attest, I love a good western movie! Many of my favorites romanticize the idea of the... MORE...

Open Range
Most people think it is reasonable to expect a seller to be honest in disclosing... MORE...

Disclosure Requirements
Most people think it is reasonable to expect a seller to be honest in disclosing... MORE...

When Weather Becomes the Deciding Factor
Out-of-area-buyers often only look at property during seasons of the year when there are ...MORE...

CCR's
The acronym above stands for Covenants, Conditions and Restrictions and usually refers to the  ...MORE...

Best Practices
For over 100 years Realtors® have diligently worked to conform to the best business   ...MORE...

What Stays?
Once during a pre-closing walk through of a recently vacated house I noticed that most of the light bulbs were missing along with  ...MORE...
 

Quit Claim vs. Warranty Deed
Quit claim deeds are commonly used when parents or ...MORE...

Why Market to a Bunch of Realtors?
Once in a local radio blitz by a new innovative discount brokerage, they mocked the strategy of  ...MORE...

Does the Seller Benefit from a Well Represented Buyer?
The current environment in the real estate industry can be fraught with many pitfalls and ...MORE...
 

Is Cash Really King?
It is a common practice for loaded investors to wave cash (figuratively) in the face of a seller...MORE...

No Trespassing!
Owning property in this country is one of our basic rights that we should not take for granted...MORE...

Trespassing
Brokers are often asked by property owners to prepare a Comparable Market Analysis (CMA) some of the reasons a property..MORE...

Market Analysis
Brokers are often asked by property owners to prepare a Comparable Market Analysis (CMA) some of the reasons a property..MORE... 

Aerial Photos are a Great Tool
Some time ago one of my agents brought a new listing into my office to get my opinion.  I quickly scrutinized the listing data..MORE... 

Common Sense
In a rerun of the TV classic, Leave It To Beaver, I was tickled by one of the interactions between Wally..MORE... 

Does a Buyer Have Recourse?
With most home purchases the buyer negotiates the opportunity to perform a final walk through..MORE... 

The Endowment Effect
In a real estate transaction the stakes are usually high, whether it’s economic...MORE... 

Times have Changed
A recent class action lawsuit is now settled and ratified by the court ...MORE... 

 

Your Manufactured Home
Manufactured homes have been around for many years now and may get a bad rap...MORE... 

Accurate Market Analysis 
Brokers are often asked by potential sellers to give a valuation of their property,...MORE... 

 

 

Price Reductions, on the Rise
In a recent blog by a reputable broker a statement was made that...MORE... 

 

Crops and Property Sales
In the fundamental real estate course that every licensee must pass  ...MORE... 

 

Blame the Government?
It seems fascinating that many US citizens think our POTUS is like a king  ...MORE... 

Easements, A Property Right
Property rights seem to be an ongoing hot topic since there are many people  ...MORE... 

Low Appraisal?
There are basically two processes of qualification when a buyer decides to purchase ...MORE... 

Title Hiccups
After many years in the real estate business, it still surprises me when property owners are unaw ...MORE... 

What Stays with the House?
Many times after a sale is completed or at the final walk-through by the buyer just prior to ...MORE... 

Big City Broker Syndrome
A seller recently fired a big city broker who had done a great job prepping for an upcoming ...MORE... 

The Power of MLS
For years the Multiple Listing System that is used by real estate brokers across the country ...MORE... 

Another Permit?
The recent sale of a quality manufactured home reminded me that there is a gap in understanding concerning the proper permitting that is required for installing or altering manufactured home was installed ona  city ...MORE... 

 

Seller Costs
As a real estate professional, I have often been asked to provide a Market Analysis for potential selle ...MORE... 

Buyers, Don't Fool Yourself
Recently a buyer traveled from the west side of our state to view several properties hoping to identify one ...MORE... 

Caveat Emptor
In the past, real estate buyers took more risk than in these modern times. Improved business practices now demand full disclosure ...MORE... 

Buyers, are You Prepared to Pay your Own Broker?
Recently the NAR (National Association of Realtors) agreed ...MORE... 

The Bugs are Here
Spring is here and the bugs are out! This is one part of country living that can be difficult! ...MORE... 

Adverse Possession
The other day an inquiry came across my desk concerning a fence encroachment ...MORE... 

Do I Have to Tell?
What if someone died in a home?  Is the real estate broker obligated to disclose this information? ...MORE... 
 

The Best Time to Plant a Tree
This March I attended an annual community Crab Feed in ...MORE... 

Is It Illegal to Record Audio on Ring Cameras?
We live in a world that relies more and more on artificial intelligence which includes having our actions monitored in many settings...MORE... 

More about Wire Fraud
Is wire fraud still a thing in today’s real estate environment?  According to ...MORE... 
 

Buyer Brokerage Services Agreement
Times have changed for buyers in the real estate industry ...MORE... 

Boundry Dispute? Not Yet.
One of the questions for sellers, on the mandated State disclosure statement, asks ...MORE... 

Should You Pass on the Home Inspection?
 In a recent real estate transaction a buyer was convinced by ...MORE... 

Realtor Code of Ethics - Excerpts
It is common for some water wells to experience loss of water quality over time ...MORE... 

Need to Rehab Your Well?
It is common for some water wells to experience loss of water quality over time ...MORE... 

Do You Have to Rent to a Criminal?
Those in the real estate industry who manage rentals are careful to adhere to ...MORE... 

Landlocked 
For the second time in a week I’ve come across the situation where ...MORE... 

 

Broker Compensation Conflicts
For the second time in a month Realtors® have been accused in a law...MORE... 

Over Priced?
One day I received a call from a buyer who was expressing interest in a property that...MORE... 

Contract Enforcement
When something goes awry after the close of a real estate transaction, the first person on the list ...MORE... 

Best Practices
For over 100 years Realtors® have diligently worked to conform to the best business practices of the times. Even the term, Best Practices suggests that such methods are continually evolving and improving ...MORE... 
 

Manufactured Homes
Manufactured homes have been around for many years now and may get a bad rap sometimes. Since ...MORE... 
 

Will Your Property Sell in the Winter?
Most sellers remove their house or property from the market in the win...MORE... 
 

Could Legal Verdict Change Commisions?
A jury recently handed a loss to the National Association of Realtors® in a case where the complaint...MORE... 

Benefit to Buyers
On January 1, 2024, major changes to the Law of Agency will go into effect...MORE... 
 

Agency Law Clarified
Since 1996 the State of Washington passed a new statute that defined and clarified agency law...MORE...