Home Buying Without A Buying Agent – Dumb Move?
There are a lot of home buyers in the market at present and along with them are probably ten times as many home sellers. As a home buyer, is it worth the cost of engaging a buying agent? It’s a good question yet as a question it is factually incorrect. Let me explain.
Real estate agents represent both the seller and the buyer. Agents fees are determined as a percentage of the final sales price and since it’s a buyers market contracts normally require that the seller pays those agency fees. And, yes, the buyer’s agent’s fees are included. In fact, as a side issue, the seller’s agent is the one that sets the agency fees. If the buyer doesn’t use an agent, or uses the seller’s agent, then the seller’s agent received 100% of the fee. If a buyer engages their own agent then the fees are split. In effect, engaging a buying agent doesn’t cost a single penny therefore the question in principle is moot.
Moving on, as a buyer, you need a representative that is part of the industry and can work solidly on your behalf. After all, the seller has an agent who is doing the exact same thing for them. Buyer’s agents can generally move things along a lot quicker compared to a buyer acting without an agent. Buyers who use the seller’s agent could be asking for trouble. What appeal is there for the agent to negotiate a lower sales price?
Buyer agents are real estate agents, they work in the field of real estate and know all the moves that can be made. They are free and can help you to save many dollars in terms of negotiated price, and by ensuring that all paperwork in terms of transferring titles are completed correctly. Is buying a home without an agent a dumb move? Well, I don’t like calling people dumb, but if the shoe fits……..
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