It’s not easy being a buyer in the real estate market these days. Almost everywhere in North America the supply of homes available to buy is very low, and the demand for them is very high. The result? Most properties attract lots of interested buyers who end up in a bidding war. Of course, a property can only be sold to one family at time, so bidding wars result in one happy seller, one happy (and relieved) buyer and a bunch of unhappy would-be buyers.
Understandably after a few rounds of losing out on properties frustrated buyers look for ways to improve their chances of success. Sometimes they think they can improve their odds by working directly with the listing agent. Here’s why that’s not a great idea…
When a real estate agent lists a home, they sign a contract with the seller to represent the seller’s interests. This is a serious responsibility – a fiduciary duty. What does this mean? It means that the listing agent must do their utmost to get the best outcome for the Seller – the highest price, the seller’s preferred closing date and all the terms and conditions favorable to the Seller. In fact, the agent must literally do everything the seller wants (without breaking the law) to get the seller what they want.
So, can the listing agent also represent the buyer’s interests? Yes, in most places that’s allowed. But what does it mean? It means that the seller has to agree to a lower level of representation, effectively that the seller’s interests won’t be the responsibility of the listing agent anymore. At least that’s the theory, but it is it reasonable to think that will happen? The listing agent has developed a relationship with the seller – they’ve worked together to bring the house to the market, agreed on marketing, the seller has shared their reason for moving and personal situation. Isn’t it likely the agent will feel that their true obligation is to the seller?
And who represents the buyer in this situation? Who works to make sure that the buyer gets the house for the lowest price possible given market conditions and with terms and conditions that favor the buyer? Well, no one. Literally, and by law, no one is putting the buyer’s interests first when the listing agent is representing both parties.
What about money? Sometimes buyers think working directly with the listing agent can save them money. After all, if the agent doesn’t have to split the commission with another brokerage doesn’t that mean they might reduce the total commission? That’s possible, but not guaranteed.
The best answer for a buyer is to find an agent who will really work for them – actively and creatively putting the buyer’s interest first. Someone who will actively look for properties that might not even be on the market, someone who will reach out to their fellow agents to find out about properties about to be listed, someone who will give them objective advice about each property that interests them, someone who can tell them when bidding war fatigue might tempt them into overpaying, someone who they can trust to tell them when to offer a little more and when to walk away. A buyer can’t get any of these things by going directly to one listing agent after another.
What about money? Is it possible to get all this – active, dedicated representation – and cash back too? The answer is yes! With home prices skyrocketing many agents have looked at their rising commission dollars and realized they can afford to share with their buyer clients.
If you’re a buyer get someone in your corner. Choose your own representative who has the right mix of experience, local knowledge, transparent fees and services and who will work in your long-term interest. Get the right agent. Get the home you want.
For Original Article Visit: Nobul Real Estate