Danger Will Robinson! Danger! When you as a buyer in and around San Antonio Texas Do Not have buyer's representation YOU WILL most likely OVER PAY for your home. The listing agent works for the seller...PERIOD.
If it is NEW Construction, the Sales Rep works FOR THE builder. If it is New Construction and Listed through a Realtor(r), that Realtor(r) works FOR THE builder. If it is Pre-Owned Construction, that Realtor(r) works FOR the owner of the home.
In any of those situations above, you the buyer are not going to get the long end of the stick. I am not saying they will intentionally set out to hurt you, but the advantage WILL go to the builder or the seller if you don't have representation.
For the love of God, please, when you are looking to buy a home in the San Antonio Texas area, get your own representation. Most likely it won't cost you anything out of pocket and you will have someone looking out for YOUR best interests!
I just watched a program called "My First Home" on HGTV, where this adorable young couple decides they want to purchase a home without a Realtor.
They've found a house they want that's for sale FSBO, and the owner won't compensate a Realtor, so they feel the need to work without a Realtor. Besides, they say, how hard can it be? They do some research on comps, get a contract from the local stationery store.... and off they go.
They make the offer, and can't manage to negotiate to an acceptable price, so they move on. They move on to the next house, and it's a new construction home, where they ask the listing agent to write up the contract... but it doesn't appear she's working as a dual agent... she's working for the builder. The house is for sale for $369,000... and has no refrigerator. They tell the listing agent they'd like a refrigerator included... a fence built in the back yard, and their closing costs included... (approx. value of $18,0000).
HERE COMES THE FUN PART.
The listing agent recommends that, since they're asking for all that stuff, they should make a full-price offer. The dewy-eyed buyers nod their heads in agreement... "that sounds reasonable", they say. Surprise, surprise, the builder comes back and says he'll give them an appliance allowance (so they can buy their own fridge), and he'll build the fence, and split their closing costs with them.
So, let's review. The builder now has a FULL-PRICE offer... (higher than I might have recommended they start), and while he'll build their fence, and give them an allowance for the fridge, he's only offering half of their closing costs.... hmmmm... let's tune back in and see how the first time buyer react.
The buyers are thrilled to tiny little pieces... oooh boy! They'll do almost everything we asked.... but wait... don't answer yet. The listing agent says, since the buyers asked for "so many things", the builder is "raising the purchase price by $10,000"! That's right... we'll give you 'almost' everything you asked for ... (a value of about $15,000) but we're going to raise the price by $10,000...
SO... WHAT DID THEY END UP WITH? Our intrepid buyers paid $379,000 for their love shack, minus their $15,000 worth of builder's concessions. So, what did they save... they ended up slicing $5,000 off the builder's price. A whole $5,000, or 1.3%.
And at the closing comments, the ecstatic buyers say "Working without a Realtor isn't for everyone, but I think we got a good deal"!
Is that the listing agent and the builder I hear clinking glasses and laughing in the background?
After all, how hard can it be?
ALAN MAY, Realtor®
Specializing in Evanston Real Estate and North Shore Real Estate
Coldwell Banker Residential Real Estate, 2929 Central Street, Evanston, IL 60201
847.425.3779 Cell: 847.924.3313 Email: Almay@aol.com
Evanston Real Estate & North Shore Real Estate • Licensed in Illinois
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