Do I really need a real estate agent ?
The answer is: YES! Why don’t I ?!
Who pays the commission to the buyer’s agent?
The Seller. Seller signs the listing agreement which lists the total amount of the commission for the sale. The listing agent will split the commission (normally half and half) with the buyer’s agent only if the buyer
has an agent, if not, the listing agent keep the whole commission. Also, most sellers choose not to provide the consent necessary for a listing agent to represent both buyer and seller.
Why not represent yourself and directly negotiate with the seller’s agent?
Because seller’s agent works for the seller! You will be operating at a severe informational disadvantage. And the seller pays the total amount of commission for the sale according to the listing agreement which is in place before the property is listed no matter whether the buyer has an agent or not. If you do not have an agent, how will you know the comparable properties to and the current market price of the property that you want to purchase? Zillow and Trulia no longer sync data from the MRIS and you have very limited access to all the true and accurate sales history. Accurate data is essential to making and negotiating an offer, operating in competing bidding situations and closings.
Should you use the same Agent as the Seller reduce the commission?
Agent will not be acting solely in Buyer’s interest. Also, if seller’s agent is disclosed to be a dual agent and represent both buyer and seller, which stance will the agent take?
So, why would you risk the possibly biggest investment in your life by not working closely with a trustworthy agent?
What can a full-time professional buyer’s agent do for you?
Apart from hearing about listings before homes are available to the public, I can:
- Tour the house and provide you frank opinion on the property from a professional’s view.
- Provide data on comparable sales from the tax rolls.
- Provide sales data from MLS based on map searches.
- Pull property profiles reflecting sales history, property data, demographics and neighborhood services.
- Obtain a copy of the home’s historical documents.
- Pull facts and trends about an area.
- Look for hidden issues relating to the property. Prevent potential future losses if you purchase the property.
- Suggest offer writing strategy.
- Prepare a strong offer that presents the buyer in the best light based on market demands and agent interaction / networking.
- Negotiate the deal, including an a situation involving multiple competitive bids.
- Review documents for loopholes, and obtain disclosures.
- Provide a buffer between you and the seller’s agent.
- Recommend reputable contractors and vendors.