As a Buyer, why do you need to have a real estate agent who
represents you?
Legally and ethically, all real estate licensees are required to be
honest and fair with all parties. In affect that means any statements made
must be truthful and the disclosures required by law must be given to all
parties. An agent does not have to fully educate you on all aspects of
your buying decision.
Traditionally, a Realtor or a real estate agent's fiduciary has been
to the seller, who is the party receiving the funds in a transaction, who
then pays a fee to the brokers involved as a payment for services.
Today, real estate agents can represent buyers and be paid by the seller's
broker when a sale takes place. This difference can translate to a substantial
savings for buyers who have an agent representing them.
A listing or seller's agent is bound to try to achieve the highest dollar
value for their seller in a transaction. That agent does not have to, nor is he or she likely
to, provide a buyer all the information available to them to determine a
fair market value.
A buyer's agent can do things for you in the purchase of a home that
you most likely would not know to do for yourself. As an example, your
agent should be able to provide you with a thorough knowledge of the neighborhood,
including recent sales, schools, commute times and routes, recreational
activities, and most importantly a realistic offering price versus the
seller's asking price. A knowledgeable agent can direct you to places to
find specific information on flight paths, super fund sites, builder complaints,
proposed freeways and other factors directly impacting your planned purchase.
It just makes good business sense to have a knowledgeable real estate
agent who is looking out for you, with the emphasis on knowledge. Many
prospective buyers rely on a recommendation and opt for the services of
"a friend of a friend". This may work out just fine provided that the agent
is a full-time professional, who has experience, and is completely familiar
with your area of interest. If not, don't rely on relatives or friendships.
They can cost you needless anxiety and money, and even cause you to lose
out on your dream home. Get your own agent, who works, and hopefully even
lives in the area, and has a good track record.
One of the common myths when purchasing a resale or a new home is that
by having one less real estate agent involved in the transaction, you can
save on the real estate fee. This is simply not true. The real estate fee
or commission is set by the builder or established by the listing contract.
The agreed upon commission is paid to the participating brokers/agents
at the close of escrow. If you eliminate your representative it simply
means that the bulk of the commission goes to the seller's broker and agent.
Although commissions are always negotiable and the seller's broker may
agree to a cut in commission to allow a sale to go through, this is the
exception and not the rule.
So, if you are looking at new builds, be sure that the first time you
walk into a new homes sales office you have Ann with you, or she will not be
able to represent you and get paid by that builder.
The bottom line is get yourself a qualified agent to represent you.
You might as well you're paying for it anyway and in most cases more than
you need to.
