Real Estate Agents – What Aren’t They Telling You!
We could be called brave, we could be called gullible but most of the time we are just plain ignorant when it comes to buying real estate. In fact, we are often not helped by the very people we rely on for help – the real estate agent. As a buyer, you have to be fairly careful about what advice you take from the seller’s real estate agent – they don’t tell you everything.
To begin with, the seller’s agent has only three things on his mind:
- To get a signature on a sales contract
- To get the highest price possible on that contract
- To get the largest commission possible from that contract
That is the aim of almost every real estate agent that represents sellers. You see, what real estate agents never tell you is what is in it for them. The answer is 6% or thereabouts. They don’t get their 6% until the sale has been completed and that of course starts with a signature on a contract. The higher the sales price, the higher their commission.
Now for the real hidden truth. Real estate agents stand to lose half of that 6% if you engage an agent to represent your interests. Commissions on property sales are based on a 3% payment to the seller’s agent and a 3% payment to the buyer’s agent. If the buyer doesn’t engage an agent then the seller’s agent takes the whole 6%.
The next time you are in the market to buy a home, just remember, the seller’s real estate agent is not telling you everything. In fact, while they are representing the seller and trying to get what’s best for them, they are also trying to get what is best for themselves. Engage a buyer’s agent since they are technically paid for anyway. This will ensure that your rights are protected and your interests met as well.
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