Debunking the Myth: You Will Not Save Money By Not Using a Buyers Agent
Over the past couple of weeks, I have seen several blog posts and news reports about home buyers, who seem to think they will save money by not using a buyers agent. It is a myth and I thought it was time to set the record straight.
The Commission Is Not Dependent on the Number of Agents Involved. (Or, Price is Not Determined by Commission.) Listing Agents reach an agreement with their clients - the Sellers - as to how much commission is to be earned upon the sale of the home. It is negotiated between them and is part of the Listing Agreement. The Listing Agent usually then determines how much he/she is going to offer a Buyers Agent for bringing a buyer to the table. If the Listing Agent procures the buyer him/herself, the total commission is the same - he/she just does not have to split it with another agent. It has no impact on the Seller's proceeds or home price.
A Listing Agent will not (and should not) negotiate on behalf of a Buyer. The Listing Agent owes a fidcuiary duty to the Seller. Period. Their job is to get the highest possible price for their client - the Seller. A Buyers Agent's fiduciary duty runs to the Buyer. Their job is to get the lowest possible price for their client - the Buyer. Dual Agency - representing both parties - is allowed in certain states (like Massachusetts) upon disclosure. But really, would you trust anyone to represent both sides of the same transaction? It's a conflict of interest.
Most Buyers Agents Charge Nothing to their Buyer Clients. There is a misconception that it costs money to use a Buyers Agent. While some do charge a fee, many (like myself) do not. We get paid upon the sale of the home by whatever commission split the Listing Agent is offering.
Hidden Costs of Not Using a Buyers Agent. Buyer agents are more than door openers. Besides showing you the property, a buyers agent will assess the home, along with its location and price and will point out potential problems to you that you may not see. A buyers agent will look at sold comparables to help determine an appropriate offer price and neogtiating strategy. And, buyers agents are with you along the way to help you meet deadlines and negotiating the rest of the process - home inspections, repairs, financing contingencies, etc. For a complete list of services provided by a buyers agent, see my earlier post about What to Expect from Your Buyers Agent. Without someone to guide you and advocate for you throughout the process, you could miss dates and deadlines that could end up costing you money.
As a fellow buyer agent once said, you would not get divorced and use the same attorney as your spouse, why would you buy a house and use the same agent as the Seller?
For Exclusive Buyer Representation in Canton MA, Milton MA, Sharon MA and surrounding Norfolk County communities, contact your Canton MA Buyer Agent. It will cost you nothing and could save you thousands.
Search For Homes for Sale
Visit Buyers Brokers Only Online
Connect with Christine Smith
(c) Copyright 2011 Christine M. Smith, Attorney and Buyer Agent. All rights reserved.
The content provided on this blog is presented or compiled for your convenience and is provided for informational purposes only. The information provided on this website should not be construed as offering legal, financial or other advice to be relied on by the reader to make or refrain from making any decision or to take any action.
Christine Smith is an Attorney and Exclusive Buyer Agent with over 20 years of experience in real estate.