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You have No Agent - WHY?

Every-time I hold an Open House I am always amazed at those (seemingly serious) home buyers that are NOT working with an Agent. While this; as a REALTOR, is a wonderful thing; that is if I am able to gain some rapport and trust in the 5 minutes I talk with them; I wonder WHY?

Why serious Home Buyers run out to look at homes without "hiring a REALTOR"; amazes and worries me. But then I remember my first (couple of) homes I bought. I did not understand Real Estate until years later. Why did I, a buyer, need a REALTOR?

The point here is EDUCATION. When I first started a Real Estate Blog; the purpose was to educate buyers. If in the process I found a new buyer, all the better. I have been - and always will have - the philosophy of "FREE Real Estate Advice". If they hire me great - if not hopefully it helps our profession.

WHY DOES a Buyer Need a REALTOR?

They have the Internet. They know at what prices homes are selling. They can view what homes are for sale. Buyers googled enough to know they need a "Pre-Approval Letter" and a Home Inspection. They need a Title Company and may know about Title Insurance.

So again : Why do they need a REALTOR?

Hey - I like Google and the Internet too! As do most of us in my Gen - X PLUS group of the population. When I googled a slight "Pain in my side" that I had last winter - it was either Pancreatic Cancer, a pulled muscle or gas. Thank you WEB-MD. Luckily for me (after weeks of no sleep and a new WILL I made) it was NOT anything to worry about. That is why I have a DOCTOR !!!! Now I have Insurance; yet I still paid the Doctor and paid for tests (that I most likely did NOT need).

Who pays for a REALTOR? Well the seller - NOT the Buyer.

Now some will argue that since the Sellers traditionally PAY Real Estate Commissions, the buyers (in the long run), is paying the commission indirectly. Yes but who is the EXPERT? The Buyer? The Seller? GOOGLE?

As I tell many of my nervous clients. Buying and Selling Real Estate happens everyday; everyplace. It is routine - it happens EVERY DAY. This is what Real Estate Professionals do - it is our profession.

Some Real Estate transactions are as easy as pie. A buyer finds a home. Makes an offer. Gets a loan. Closes on the property and gets the keys a few weeks later. DONE. EASY!

However, for every "SMOOTH" transaction; there is a another. Sooo many things CAN or COULD go wrong. Is the inexperienced Buyer thinking of them?

Should I have a Home Inspection? What is an Appraisal? What do I do if the Appraisal is wrong/too low/too high? Am I paying too much for the home? What is it REALLY worth? Tax issue? Title Issue? What is Rent back? Pre-settlement? Post Settlement? The WHAT broke the morning of settlement!!!?? I have to pay POINTS?? My Lender told me WHAT? Escrow? What is Escrow?

While Google may help - it doesn't have the experience.

A few things a BUYER should know:

In most states (including Virginia, Maryland & Washington DC): If you walk into a property at an Open House - the Realtor is working FOR the SELLER. Getting the BEST deal for the SELLER. Anything you say or do CAN and WILL be used AGAINST you to get the SELLER a HIGHER price or better deal for the home. That is the LAW.

Any REALTOR who shows you a property (without a WRITTEN & SIGNED Agreement) is (BY LAW) working FOR THE SELLER.

How does a Buyer Hire an Agent? They need to interview agents. Find someone they feel comfortable with, who is knowledgeable and they like and "fit" with. We all have different personalities - we are not all meant to work together!

They need a BUYERS Agent. A signed written contract (if even for a weekend or week); assures them their agent is working FOR THEM. To get THEM, the buyer, the BEST Price and looking out for their BEST INTEREST.