Buyers--You don't pay the Realtor
Sabtu, 16 Oktober 2010
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One thing that causes a lot of confusion in the world of Texas Real Estate is that if you are buying a house, you are not going to be the one that pays the commission for your Buyer's Agent (your Realtor who represents you). This is true for both new homes, resell homes, and homes to be built. The seller, or the builder has already built the commission for both sides of the transaction into the cost--and it is set contractually set with the listing agent before the house is listed on the MLS.
The Myths:
1. "If I don't have an agent representing me, I will get a better deal." I have seen a lot of smart people and great negotiators who believe that they know more than a Realtor about the business that I do 70 hours a week. But I have yet to find one who does indeed know more, or have access to more information than I do about the Austin Real Estate market. You may believe that you can spend 20 hours online and learn what I know about Real Estate, or think that because you spend 10 hours a week looking at houses that you understand the local Real Estate market, but the truth is, unless you are a Realtor doing business every day of every week in this current Austin market, you don't know what I know. Any more than I could be effective at your job with 10-15 hours a week of study. Business doesn't work out like that--yours or mine.
2. "If I don't have an agent representing me, I can get 3% off the top of the deal." First of all, the Buyer's Agent Brokerage commission is set by the contract with the listing agent. It is not going to change, regardless of what you negotiate. Secondly, going into a deal without a Realtor to represent you is painting a target on your back. You may feel like it is a smart move, but listing agents look for the unrepresented buyer. I see it every day and see buyers make big mistakes in how and where they buy--even though they feel as though they have negotiated a great purchase. In the end, it comes back to haunt them. It is a costly mistake that costs nothing to avoid.
3. "If I buy a new home, I don't want to pay for the Realtor. I will just use the agent of the builder." First of all, the Builder's Salesperson represents the builder--exclusively. Same is true of an agent who is selling a house. They always represent the best interests of the seller--it is Texas law. They can not represent both you and the seller. It is a conflict of interest. Secondly, the builder of a new home does not raise the price of a new home when you have a Realtor represent you. If anything, the Realtor is more likely to be able to help you find discounts or help you make a better deal. Your Realtor may even advise you that this is not a good deal at all--for a host of potential reasons.
Like getting medical help, just because you are standing in a hospital, does not make you a Doctor. You can spend loads of time online looking at houses and researching tax records and liens, but this does not make you a Realtor. If you believe that this is value add of a Realtor, driving you around to open doors for you--you should spend some time with your Realtor to better understand what a good Realtor does and why you profit from having an experienced Realtor represent you when you buy your next home, New or resell--you come out ahead.
The Myths:
1. "If I don't have an agent representing me, I will get a better deal." I have seen a lot of smart people and great negotiators who believe that they know more than a Realtor about the business that I do 70 hours a week. But I have yet to find one who does indeed know more, or have access to more information than I do about the Austin Real Estate market. You may believe that you can spend 20 hours online and learn what I know about Real Estate, or think that because you spend 10 hours a week looking at houses that you understand the local Real Estate market, but the truth is, unless you are a Realtor doing business every day of every week in this current Austin market, you don't know what I know. Any more than I could be effective at your job with 10-15 hours a week of study. Business doesn't work out like that--yours or mine.
2. "If I don't have an agent representing me, I can get 3% off the top of the deal." First of all, the Buyer's Agent Brokerage commission is set by the contract with the listing agent. It is not going to change, regardless of what you negotiate. Secondly, going into a deal without a Realtor to represent you is painting a target on your back. You may feel like it is a smart move, but listing agents look for the unrepresented buyer. I see it every day and see buyers make big mistakes in how and where they buy--even though they feel as though they have negotiated a great purchase. In the end, it comes back to haunt them. It is a costly mistake that costs nothing to avoid.
3. "If I buy a new home, I don't want to pay for the Realtor. I will just use the agent of the builder." First of all, the Builder's Salesperson represents the builder--exclusively. Same is true of an agent who is selling a house. They always represent the best interests of the seller--it is Texas law. They can not represent both you and the seller. It is a conflict of interest. Secondly, the builder of a new home does not raise the price of a new home when you have a Realtor represent you. If anything, the Realtor is more likely to be able to help you find discounts or help you make a better deal. Your Realtor may even advise you that this is not a good deal at all--for a host of potential reasons.
Like getting medical help, just because you are standing in a hospital, does not make you a Doctor. You can spend loads of time online looking at houses and researching tax records and liens, but this does not make you a Realtor. If you believe that this is value add of a Realtor, driving you around to open doors for you--you should spend some time with your Realtor to better understand what a good Realtor does and why you profit from having an experienced Realtor represent you when you buy your next home, New or resell--you come out ahead.
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