Why can’t I just do this on my own?!
As a buyer, you question why you’d want to engage a Broker (i.e. a professional real estate agent) to represent you…
You are thinking, I am perfectly capable of finding a house on the internet all myself;
once I find it, I just make an offer and buy it!
You are right — you can do that.
That is, you can do it IF :
- If you have already gone through the whole process…
- If you completely understand all the paperwork involved and all the steps you need to take…
- If you understand the housing market and know what offer you ought to make…
- If you are good at negotiating on your own behalf…
- If you have excellent reliable contacts to serve as your lawyer, inspectors, loan officers…
If all of these are true for you, then you may not need any more help.
For everyone else, your qualified, Professional Real Estate Broker will guide you through this complex and often stressful process.
Isn’t it cheaper without one?
It’s logical to wonder, would it not be cheaper for me to just not use one? Can’t I get a “better deal” on price if I have no agent involved?
In theory it seems like it should be cheaper because, of course, the real estate broker gets paid a commission from the sale.
But it is the SELLER who pays it, and who contracts to pay it – not the buyer. And unless you are trying to buy a place that is “For Sale By Owner”, the seller already expects to pay the commission for both the seller agent and the buyer’s agent.
On top of that, the price is NOT likely to get reduced just because the buyer has no agent.
Now sometimes the seller’s agent might have agreed up front to take a slightly reduced commission if the seller agent plays the role of “dual agent.”
This means the seller’s agent has to “behave like Switzerland” in all the negotiations, and cannot be an advisor for either side.
Their role is strictly to facilitate the transactions.
But often transactions in these situations can get more complicated than the buyer or seller expected, and the agent ends up working even more on these cases than if the buyer DID have their own agent!
Because agents know this, they may not even agree to be a dual agent.
In any case – the bottom line is that for most buyers, in most situations, it only helps you to have your own agent or broker – completely representing only you – and it does not cost you any more.
In summary:
As a buyer, in most typical situations, you are better served by having a good real estate agent who will represent you and your interests.
It is usually the seller who pays the agent and it is not likely that you will pay less for a property simply because you have no agent representing you.
Questions?
If you are not sure about any of these points and want more information – let us know and we’d love to clarify things!
Contact us – we would love to help you understand more!