YO-YO Home Buyers - Litigation Waiting to Happen?
This is an exceptional blog post by my friend and colleague, Debe Maxwell. She talks about the potential perils, pitfalls and pain of being a "Yo-Yo" home buyer (Yo-Yo is short for "you're on your own), and buying a home without partnering with a Realtor you trust to guide you through the process. In the vast majority of cases, hiring a buyer agent to represent your interests costs you NOTHING (the fee is paid by the seller in most all transactions except some for-sale-by-owner deals.
Please remember....you will NOT SAVE money by working directly with the listing agent! But it could COST you a lot of money. Understand that the listing agent represents the SELLER's best interests, not YOURS!
Yo-Yo Home Buyers - Litigation Waiting to Happen?...
...Who Wins in These Situations?
Having a fairly strong presence online with anything related to real estate in my area, I receive daily calls from people asking HOA questions about a particular complex or subdivision, about available rentals (which I do not work), about floorplans of a home that is not my listing...the list goes on and on. I typically have a referral name or advice for whom the caller should contact but, the absolute worst is having to refer an attorney for a Charlotte home buyer who was a Yo-Yo and has found themselves in a world of hurt.
No, I'm not calling him a "Yo-Yo" - The term is used in place of "You're on Your Own" and is a scary term in many professions but, can be quite costly when it involves real estate.
This particular buyer thought it wise to work directly with a listing agent, thinking that he would save "big bucks" not having any representation. He told me, "I've bought 5 previous homes and THOUGHT I knew what I was doing!"
Little did he know that his seller and their agent were BFFs and so was the inspector whom "they recommended (I) use." Not a good sounding start to this call, for sure.
As it happens, the buyer was completely 'ripped off' and didn't realize that he ultimately didn't save the commission that he thought he was saving...in fact, this little buying process has wound up costing him tens of thousands of dollars. He wanted advice from which to seek assistance. I personally could only give him the names and numbers of the NC Real Estate Commission and a couple of good attorneys in the area to assist him.
Unfortunately for him, the Commission isn't going to be able to help him get any money back and the amount of money that it will likely cost him to go through court (the expenses are too large for small claims court), will be significant as well. The poor man was literally robbed and the sad part of the story is that had he had his own representation, chances are quite high that his buyer's agent would have caught this.
If you're a Charlotte home buyer thinking of becoming a Yo-Yo...DON'T DO IT! I tell callers all the time, "Even if you don't hire me, hire SOMEONE to represent you! It will save you more than you can imagine." This gentleman is proof that it's always wise to have your own agent - remember the sellers in North Carolina have a Contract with the listing BROKERAGE. If you don't bring your agent to be paid by that brokerage, the listing brokerage (and that agent) are compensated quite well!
Remember...you want to enjoy those first years in your 'new' home - not spend them in agony...or in court.
© Debe Maxwell | Savvy + Company Real Estate | SavvyBroker@me.com | YO-YO Home Buyers - Litigation Waiting to Happen?
(THE best Charlotte home search available - no kidding!)
Charlotte NC Real Estate Agents
Debe Maxwell, CRS/Realtor®/Broker
SavvyBroker@me.com
Phone (704) 491-3310
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