Step-by-step Resources for Buyers
Check out our Buyers’ Agency handbook! Each link takes you to a detailed page with answers to your every question about that step in the process. We have recommendations for services, loads of helpful info, forms to preview and everything you will need to buy your new home.
Step 4: FROM THE OFFER TO THE P&S
DIY is great! But not for buying real estate
Why not, you ask? Here are the top three reasons why not to search for real estate alone:
- You will NOT get a better deal working with the listing agent
- If you have a local agent, you will NOT miss a chance to offer on your dream house
- You will NOT have to pay anything to your agent – the seller has already contracted to pay the buyer agent’s fees
You will NOT get a better deal by working with the listing agent
We say that with certainty because the listing agent has a fiduciary duty to maximize the seller’s outcome based on the listing contract that was signed long before the house was listed on the market. Put another way, the listing agent has already signed a contract to represent the seller’s best interest. You may think that you’ll get a deal if you approach the listing agent and say, “I’ll buy it through you if you take less commission.” (Or maybe an agent has offered you the same). And yes, usually having already signed a listing contract with the seller whereby the seller will pay the listing agent’s company 5% of the sale proceeds (2.5% for the listing agency and 2.5% for the buyer’s agency), the listing agent may agree to give back to the buyer some amount or to reduce the total commission due. Not only, however, is she under no obligation to do so, but you and the seller must agree to the arrangement. Great, you all agree – you say! You just saved 1% of the purchase price! Well, if you have a good relationship with the agent and you feel comfortable with the price you’re paying because you are thoroughly educated on the value and the market and there’s no way you’re overpaying, great! But let’s just say we’ve been to too many houses to give opinions of value and we think “Whew, they payed too much for this!” and lo and behold they thought they were getting a deal by seeking out and working with the listing agent.
If you have a local agent, you will NOT miss a chance to offer on your dream house
We know what you want, we love our clients and we want them to get the home of their dreams. We won’t let a great thing come on the market and get snatched up. If we don’t give you a heads up before it comes on market (though we often have that intel since we’re so local), we’ll certainly see it come on and let you know right away. But no pressure. You let us know what method of communication works best.
You will NOT have to pay anything to your agent – the seller has already contracted to pay the buyer agent’s fees
Yup, it’s true. The seller of the house you buy will already have agreed in their listing contract to pay BOTH their agent and the agent who brings the buyer. So why not have someone who is on your side?
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