Saving money? This could cost you more
There is a myth in real estate that to get the best deal, buyers need to work with the listing agent.
This misconception is promoted by the “Get Rich Quick in Real Estate” seminars and by those who love to work the system to get twice the pay for one sale. So take it with a grain of salt.
Nothing is further from the truth and here’s why.
The commission agreement is between the seller and the listing agent. No one else is a party to that contract. Not even the buyer.
Since the commission is coming out of the seller’s pocket, the seller will want to benefit if there are any savings.
Why would the seller hand over their money to the buyer?
Especially knowing that the transaction will be more difficult due to the additional work for the lack of agent on the buyer side.
Today, I want to share with you the other side of this racket.
The part you're not even considering because you are focused on the false premise that you are saving thousands of dollars.
Besides saving money, another reason people want to speak with the listing agent is that they know “everything” about the property. While that may be true in some cases, I also know listing agents who have never set foot in some of the properties they sell.
Here’s what I want you to consider.
The listing agent has a fiduciary responsibility to his client, the seller. And if they are a Realtor, the Code of Ethics requires them to put the seller's interests first, above all other parties.
That makes you third in line if you consider the listing agent's personal responsibility to themselves and their family. While the listing agent might answer every question you ask honestly, they are under no requirement to tell you anything that you forgot to ask.
While a buyers agent might not be an expert on this particular home, they should be an expert on real estate in your area.
Not only will they ask questions you did not consider. They will also ask followup questions to get past the sugar coating and get down to the real truth of the matter.
For example, if you are buying a new construction home, you may assume that the home will be completed in the next six months. Like most consumers, you take that for granted.
What you might not realize is that most builder contracts allow them to take up to two years to complete a home.
Or decide not to build it at all.
And if you are counting on being in the new home for the holidays, you could be seriously disappointed if you find this out after the fact.
The best buyer agents will know what is important to you and dig deep to make sure that you see the truth, the whole truth, and nothing but the truth.