In today’s world of Real Estate home buyers are incredibly informed so why in the world would they need a Real Estate Agent?
We host a lot of Open Houses and let’s be honest, open houses don’t typically sell a home. Whats that you say? If open houses don’t sell homes, why are you doing them? The answer is, although we are there at the home to do our best presenting and selling the home, the real reason is to meet you, the potential home buyer. Lately however we’ve noticed an increasing trend of potential home buyers that don’t want to work with a specialized buyers agent and the question is why? So we took upon ourselves to reach out and ask this question and the overwhelming response was that home buyers felt that 1. They would have a better chance of having their offer accepted if they worked directly with the listing agent and 2. They could save money because the listing would have more commission percentage to help with negotiations. Now while these seem like valid points, lets dive into this a little deeper and show how this could be a bad strategy.
To start a listing agents main priority is to sell a home for as much money as they can. Not only for their seller (who they have a fiduciary duty to do just that), but also for their own personal stats. Look at it this way, listing agents want to be known for selling homes for list price or above asking not 10K below asking price. Lets be real, “Sold Over Asking Price” looks better on marketing material than, “Sold Way Under Asking Price”. Second, although purchase price is important there are most likely going to other costs that are going to arise during the course of an escrow. What if during the course of the home inspection it’s revealed that the home needs a new roof, the HVAC is on its last leg and the sewer line needs replaced due to root intrusion. These repairs could cost up to 30 Thousand Dollars and the seller isn’t willing to make any of the repairs. I would think at this point it would be in your better interest to have someone in your corner to handle the negotiations. Think of it this way, if your spouse was divorcing you, would you want to hire their attorney? Probably not in your better interest.
Another great reason to work with a dedicated buyers agent is that we often sell homes that aren’t even on the market. Although Zillow, Redfin and other online Real Estate sources are great at showing you the homes that are on the market, but what about the homes that aren’t? For example, you have found the subdivision you want to buy a home in. The schools are great and you love the neighborhood but nothing is on the market. Here is what a good dedicated buyers agent should be doing for you. First, I’m getting on the phone with the top listing agents in the area and asking them what they have coming up or if they have any pocket listings. Second, I’m mail marketing the area that I have a buyer for the neighborhood and see if we have any potential sellers. Third, I’m door knocking the neighborhood and letting homeowners know that I have a buyer for their home. Last, most good buyers agent are involved with multiple online resources that allow agents to share upcoming and pocket listings with other agents. Most of the time, we are going to find you the home you want in the neighborhood you love.
The best part about all of this is that are services don’t cost you the home buyer a dollar. That’s right, all of a buyers agents services are paid by the seller. So when we really break it down it may seem like a good idea to work directly with a listing agent. Could you be doing yourself a disservice that may end up costing you more money in the long run? There is much more to a home buying transaction that would make this article far to long but having proper representation for what is most likely the most expensive purchase you will make is a your first good choice.
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