Busting the Top Real Estate Myth
Most of you have seen the Discovery Channel show MythBusters. It stars Adam and Jamie, two Hollywood Special Effects Experts. They use science to test the validity of famous myths, rumors, movie scenes and news stories.
The myths come from many sources, including fan suggestions.
Over the last nine years, they have used 12 tons of explosives in their testing. Obviously, these are my favorite shows.
When the results cannot be confirmed in any way and are highly unlikely to occur with the scientific facts presented, the myth is deemed "Busted."
That brings me to today's top real estate myth.
Buyers will get a better deal if they go straight to the listing agent.
I do not know who started this rumor, but it needs to stop. Now.
I'm passionate about this topic because I hate to see people getting less than they bargained for. And in some cases get taken to the cleaners.
When I've asked people, why? The typical answer is they want to save the commission.
It's nearly impossible to save something that you are not paying.
The seller is paying the commission on the sale. So, if anyone is going to save, it is likely to be the seller. Why would they want to give their money to the buyer?
On top of that, the commission is determined by an agreement between the seller and the listing agent. Most agreements are set to pay a specific percentage to the listing agent. The lack of a buyer's agent does not change the amount paid to the listing agent. Also, an offer to buy the property has no bearing on the agreement between the seller and the listing agent.
So, why would the listing agent give away half of the commission when they will be doing double the work? And, if they decide to give it away, I'll bet they give it to their client, the seller.
The vast majority of buyers will not save money when they buy without representation.
And that's not even my biggest concern.
When you do not have representation, bad things happen. Sometimes these bad things have many zeros on the right side.
Don't walk past dollars to pick up pennies.
Get your own high performance agent that takes their fiduciary responsibilities seriously.
If you want to avoid getting your myth busted, hit reply and tell us your story.
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