What is Collateral Business?
Collateral business is any buyer who calls a listing agent about one of their listings and gets “converted” into a prospect. It happens even more now because many of the listings you call on that you have found in an internet search that appear for sale are actually under contract. (That’s a whole other write up).
So…..you call a listing agent on a beautiful home that is either advertised on the internet or worse yet in print (many listings here are out of date or sold). And guess what, it just went under contract…..BUT…..”I have others, or I have other ideas or I know of one that might just be coming on the market…etc, etc, etc.” You buy into it and guess what, you just became a piece of collateral business. And worse yet the listing agent just became your buying expert.
What? It all happened so quickly.
Now all of the sudden you are working with a listing agent trying to be a buyer’s agent. Have you ever heard the expression, “You can’t serve two masters?” I don’t care what anybody says, you can’t be the best at both and sometimes you can be a disservice if you try and be both (dual agency). Please don’t be a piece of collateral business, call an expert in the buying process, call a buyer’s agent!