If you are thinking of buying a home, but hesitating to call a REALTOR because you can't afford it, hesitate no longer. When a listing contract is signed by a seller, the seller and listing agent have negotiated a commission to be paid for marketing the seller's home. When the property is placed on the Multiple Listing Service, the seller agrees to pay a portion of the listing commission to the buyer's agent. That means you, the buyer, do not have to pay for your agent's commission because the commission is factored into the amount you pay for the house.
Often buyers think they will get a cheaper price on the house if they don't have an agent representing them. Actual numbers don't support this idea.
- First, the commission is NOT reduced because there is only one agent. When there is no agent on the buyer's side, the listing agent receives the whole commission instead of having to share with the buyer's agent! The end result: the price is not reduced because there isn't a buyer's agent.
- An agent on your side can research recent comparable sales to make sure you are paying a competitive price.
- An agent's experience on your side can equal the playing field when negotiating.
- Sometimes buyers become so intent on getting the property that an agent's expertise helps them to remain focused.
- Agents can tell you which concessions are reasonable. Exchanging 23 feet of lakeshore in the city for $2,000 is not a reasonable concession! An agent can advise you on this kind of request.
- Agents know what the consumers don't!
We live in a "do-it-yourself" society, but since having an agent on the buyer's side does not increase the price, why not have a professional real estate agent offer their expertise and guidance through the process?
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