This really is a statement . . . not a question. Buyers make all types of mistakes that can cost them money, or ultimately weaken their negotiation position.
WHAT DO BUYERS DO WRONG!?!
Talk TOO Much!
Being an avid viewer of reality TV cop shows I do know one thing . . . every suspect has a RIGHT - and that is: to remain silent.
If I had the ability, I would mandate a real estate disclosure to EVERYBODY that calls the listing agent who is advertising a property for sale.
This advertisement can be a FOR SALE sign on the sellers' front lawn, a newspaper ad, a phone call to the listing agents' office, touring an Open House on Sunday.
The listing agent is under contract with the SELLERS! They are duty-bound in their fiduciary duties to their clients . . . the SELLERS!
While all Realtors® have ethical duties to the general public, the moment an agent puts pen to paper on a listing contract, the agent of the brokerage -- and ALL the other agents in that brokerage -- are now agents of the sellers.
The Tale of Betty Buyer: Betty goes out on Sunday just to get the paper. But while out, she sees an Open House sign in the neighborhood and drops in. The listing agent greets her, and Betty seems very impressed with the place. She tells the listing agent that she lives in the neighborhood and saw the For Sale sign go up a week ago. The agent tells Betty this is the first Open House, and it's going really well - quite a few people have been in to tour.
Betty didn't seem to find any flyers outside, and wondered how much they listed the place. The listing agent tells her, and Betty is surprised.
"WOW - I can afford this! I just got qualified online. But, I'm good to go for $50,000 more!"
Yeah! It happens just like this. A buyers' anxious, nervous energy can get the best of them. They talk too much. Not only did Betty show an interest in the home, but she also told the listing agent she can buy it . . . and not only that . . . but can buy $50,000 SPEND MORE!
Under the listing agent's fiduciary duty, they can disclose this to their client, the sellers!
Rule #1 as a Buyer: You Have the Right to Remain Silent!
It really is as simple as that. And if the seller is under contract to list their house for sale with a listing agent/agency is pays to follow my simple rule.
Rule #2:. . . obtain a BUYERS AGENT, and if you really want to do yourself a favor, obtain an EXCLUSIVE BUYERS AGENT!
Realtor(s) are not at odds with each other when they represent their perspective clients. We are bound by our Code of Ethics to offer cooperation, and provide customer service to non-clients.
However, all things in real estate boil down to one thing: legal contracts. The listing agent is there for the sellers. They have a fiduciary duty to their clients to obtain the best possible terms. The listing agent is NOT there for you . . . the buyer.
Now that the Feds have cut interest rates, it's time to start thinking about buying again. With a plethora of inventory available in most US real estate markets, now is a GREAT time to make your best offer!
Don't forget to visit me online for BUYER TIPS: www.ebaportland.com