Why Work With A Buyer’s Agent When Purchasing a Home?
When a person goes to sell their home, they (should) meet with several real estate agents, to see who would be the best person to represent them. Basically Agents go on pitch meetings in order to get the job.
Many agents will say whatever it takes to get that Listing– they will promise to get X amount of dollars even though they know the home is not worth that amount. It’s one of the more dishonest practices I’ve encountered – yet it is exactly what (most) Sellers want to hear.
What Happens Next?
Homes sit unsold. At the moment there is Duplex on 4thstreet. (Used as rental income property for years). The Out of the Area Agent overpriced it by $250,000…then there’s a property at 6th& Strand - the Agent has an asking price that equals $1328 per square foot! (No Ocean View or anything to justify this premium). Finally, there is an income unit on 3rdStreet that has been on the market since October 2016. Originally listed at $4,995,000, 1½ years later it is $3,295,000– (by the way, fair market value based on Comparable Sales in the area is $2,750,000). Imagine if you paid $4,750,000 a year ago and thought you got a good deal – it would be hard to ever recover from that investment mistake.
Listing Agents are not your friend – they represent the Seller. They fish for unknowing buyers, or buyers who think they will save a buck by representing themselves – any savings you think you are getting on commission from being unrepresented will be split between the Owner & the Listing Agent.
There are 50 things a Buyer’s Agent will do for you when it comes to buying a home – pricing, negotiating, RPA contract details, inspections, contractors, mortgage referrals & negotiation, navigating title & escrow details & more…but the most important thing is to not allow you to overpay for a home…
My Next Post will be for Sellers and how to get the most $ for your property – hint: under price the home & create a bidding war…