I have had two different home buyer’s tell me this week; when they inquired about a listing I have on the market. These people say they don’t want or need an agent. Why?
One person said; they will get a better “deal” working directly with the listing agent. Why do they think that?
For those who do not understand; let me explain how a Basic Real Estate transaction works.
A homeowner hires a Real Estate agent and signs a Listing Agreement Contract with them. The seller agrees to pay X% commission to the agent. The agent will then share the commission with another agent. Of there is no other agent involved; the listing agent gets the full X%.
A listing agent does (and must) work for the seller. Their job is to get the best price and terms for the seller. PERIOD.
If a buyer without their own agent shows up by law; they must Disclose Material Defects in the property (if known). Things like the basement floods or the roof leaks. And they must treat the buyer honestly and fairly.
What they cannot do is help them get a better price or suggest they do a home inspection; etc. They are only allowed to suggest to the buyer a contract price of the list price (or above). They are NOT representing the Buyer.
So why would a buyer NOT want their own agent? Cost? No. As you can see; sellers are paying the commission; not the BUYER. Having your agent representing you does not cost you.
I suppose some are not convinced and never will be. However; a buyer needs to understand that having your agent guide you through the process; show you the comparable sales data (not just the ones the listing agent will show you which supports the sellers price); advise you on what inspections you need and be you – the BUYER’s trusted advisor.
So next time you think you don’t need your agent – think again.
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