Special offer

Do you really save money buying from the listing agent? True or False

By
Real Estate Agent with Remax Estates Properties DRE #0892215

Real Estate Myth Buster #1-Buying From the Listing Agent

So somewhere along time ago a rumor was started in a really tough Seller's market that if you deal directly with the selling agent that you will save money. Yes, you may save a part of the real estate agent's commission but you usually spend more money on the sale price of the house.

By allowing the listing agent to negotiate the lowest price for your home can and does most of the times cost you more money.  In only one case you may get the property and save a few thousand which is in the old days of short inventory when houses were scarce and if you made an offer through the listing agent some people believed that the listing agent would push it through because he or she would get both commissions.

Which may have been true but not always since a real estate agent has to let his Seller's select the buyer.  In many cases, sometimes my seller would pick buyers that were a larger down payment or they liked the couple and wanted that family to be the new owners of their cherished home. It does not mean you will save money on the sale price.  Below I have sited examples of how by using a buyer's agent you will save much more money.

Now you are going to say but I know a Realtor who represented both sides and discounted his commission.  That is very true.  Maybe the discount was $5000.00 or a little more.  That sounds good but in theory that is not your best decision.  

 Here is the myth buster- The listing agent 's first duty is to the seller.  By Real Estate law , their first loyalty lies with the Seller.  As a matter of fact so does the Buyer's agent.  The difference is this. 

If the listing agent gives you a price that the Seller's might take it has to be the price the Seller tells them they will take.

If the Buyer's agent gives you a price for the home, it will be what the home is worth according to market value right now. Seller's may say one thing but when it comes to selling their home conditions can change their sales price acceptance once a qualified buyer's offer is placed in front of them.

Now another thing is the listing agent has to walk a tight rope to not offend the Sellers and push the Buyer's offer through.. They do not want the Seller mad at them because the will risk losing the Seller as a new buyer. That will cost the listing agent commission in the long run.

I have sold property's being a buyer's agent and obtained a sales Price of $20,000.00 to $100,000.00 less than the listing agent quoted my clients on a  open house.  Do not be deceived by this myth.

Do not be tempted and deceived by the listing agent's offer to discount the commission this lure of 1-2% comes out to be on a house of $500,000.00 $5000.00 - $7,500.00 which may sound great but not in this buyer's market when going through the listing agent may cost you $20,000-$50,000.00 more on a house for $500.000.00

This does not always mean you are paying the lowest and best price for the house.

Right now the Buyer's markets are starting in Torrance, Walteria, Redondo Beach,Palos Verdes non view properties, Rancho Palos Verdes Non-view properties,Palos Verdes Peninsula Townhome Market, Inland Coastal Areas of Los Angeles County and individual areas of the South Bay. Ask you agent to to a market stats, like Remax has available from trend graphics to see the current real estate market in you area.

Posted by

Ocean

 *All views used in these pictures have been sold by Mary C. Thomas

                                                                 

                                        Mary C. Thomas Realtor- 310-946-2205

This blog is property of Mary C. Thomas copyright 2008

 

 

Comments (0)