So you’re thinking of purchasing a home. That’s awesome and super smart! Not only will you be investing in your future, you’ll be taking advantage of great opportunities! The current interest rates are super low and there’s some new down payment programs to help you achieve your goals.
In a world of instant information, it’s very tempting to go at it alone. “I’ll just surf the net”, you say and “I’ll sign up for instant listings with the email address I use for junk mail and registrations. (#kudosifyouhaveone) I’ll attend a few open houses when I’m in the neighborhood and/or I’ll call the person on the sign if I have questions.” My house. My plan. My time. My terms. Before you embark on this fabulous adventure, let’s consider some additional factors:
1. A buyer’s agent will have access to information you can’t get
Key words: access, information, license. Licensed real estate professionals have the most recent and up to date numbers on what’s for sale, what’s truly under contract and what has sold long before the third party internet sites are ever updated. (By their own admission, the numbers are inaccurate.) There’s a reason you need the license to get the numbers. Understanding fair market value and conducting business in a manner to accurately reflect this knowledge is one of the cornerstones of the Realtors Code of Ethics.
As a bonus, the true professionals, research the market daily to interpret the numbers and understand the trends. They also work with trusted loan officers that can get you the best rate possible.
2. A Buyer’s Agent is obligated to represent the buyer as a client
Purchasing a home will most likely be the greatest investment you will ever make. Can you buy a home without a buyer’s agent? Sure. You can also go to court without a lawyer too, but we wouldn’t advise that either. What we would suggest for consideration, is representation from someone who clearly understands the profession and the market and works to exceed your expectations and negotiate the best price for you.
A Seller’s Agent is contractually obligated to represent the best interests of the seller as a client, which makes perfect sense (and cents) too. Some would suggest that working directly with a seller’s agent will save money. Perhaps the owner will not have to pay as much commission so the buyer will get a better price? Maybe, maybe not.
Without representation, you won’t have the peace of mind in knowing your best interests in a transaction were first and foremost, and you’ll never really know the deal you could have gotten. The largest investment of your life shouldn’t be determined by whether or not someone will give up their commission; it should be determined by someone who understands, after studying the market, what the best deal is and secures it for you.
3. 99% of sellers agree to pay for the representation on both sides of the contract
You’re the buyer. You come to the closing table with a bowl full of money. (#cashierscheck) It’s dispersed according to the contract terms. The seller has already agreed ahead of time to pay his own agent and the agent that represented the buyer, from their proceeds. They were represented. You were represented. Everyone wins. Assigning one agent to equally represent the entire process is a lot like asking a football coach, to coach his team, the opposing team and referee at the same time. Is it possible? Technically, but not advisable. Most players would agree that each team greatly benefits from having their own coach.
4. Consider the market
Currently, we are in a market of low inventory and multiple offers. It’s crucial to be prepared when the right house comes along. It’s also important to understand what it means to be in a multiple offer situation and whether or not overbidding is worth it. A buyer’s agent has the resources that you need to make the decisions that are right for you.
Purchasing a home truly is an awesome adventure and we’re here to provide you with the representation you deserve in achieving your goals, whether you’re buying, selling, or investing. Contact us today for more information on agent disclosure and the buying process! It would be a privilege to work with you in any capacity.
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