Today while working on a possible listing for a home in another city, I thought about a conversation I had with one of my customers a few days ago about a referral they wanted to send my way. The possible referral is ready to buy, cash in hand, but does not want to work with a Realtor. OK, let's say that again....the BUYER is ready to BUY, but does not want to work with a Realtor.
Honestly, this has me confused. Why wouldn't a Buyer want to work with an agent? Upon asking a few random people, there is a common misunderstanding amongst those who don't understand how Real Estate commissions are paid. Unfortunately, some think that no matter what side they are on (buyers/sellers), that THEY are the ones who need to pay the commission and in no way, shape or form want to do that! Hence.....the Unrepresented Buyer.
So for all of my friends, future clients, and just those who are curious.... 
When an agent takes a listing on a piece of property, no matter the type, they become the Listing/Selling Agent. A commission is agreed upon at the time of the listing agreement, usually a percentage (example 6%). When the property is sold, the agents involved (Listing/Selling Agent and Buyers Agent) will split the commission.
Some exceptions to the rule: For Sale By Owner; Contingencies in a contract (for parties involved to split all closing costs), etc.
But the real question still exists...why WOULDN'T you use a Realtor?
Consider what a Realtor will do for you:
- Make sure that everything is in order and in accordance with the law
- Has more resources than the average person to help find what you are looking for
- Help you negotiate financing, terms, conditions, etc
- Help you find a qualified lender, home warranty company, etc if necessary
- Make sure you understand, to the best of their ability, all of the "lingo" and paperwork
- Tell you when something is NOT in your best interest
And most importantly, A Good Realtor will be by your side Every Step Of The Way and make sure you have the smoothest transaction possible!
I recently represented what was going to be an "unrepresented buyer" on a For Sale By Owner transaction. When everything was said and done, it really gave them peace of mind and made sure everything was perfect! They realized it was the best thing they could have done or they could have been in a very sticky situation. Just goes to show.....
So, for those who want to go it alone, best of luck to you, but Buyer Beware! It does not hurt to call a Realtor, and in the end, it may be the best decision you made!
For more information on Why you should use a Realtor, please visit Realtor.com
Sandy
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