Recently, I have heard from a lot of buyers that their loan officer has advised them not to sign a Buyer's Brokerage Agreement. The question I asked them was why would you take advice from someone that does not specialize in Real Estate and may not know all of the real estate laws. They didn't have an answer. I then went on to say you wouldn't go to court for a major case without representation, so why would you want to make the biggest purchase of your life without representation.
The loan officer's only job is to handle the loan process. There is a lot of mortgage fraud being committed to make deals work, and some unscrupulous loan officers could very well want to leave out the Real Estate Agent so that the buyer will not discover what is really going on. The Real Estate Agent and not the Loan Officer should handle any and all contract changes. If something doesn't sound right the Real Estate Agent can let the buyer know. If you don't have an Agent you may not find out until it is too late.
I have 5 reasons as to why you should have a Real Estate Agent to represent you.
- There is no cost to you to sign with a Real Estate Agent. It is our job to get you the best deal. If you are representing yourself you may overlook very important details or your negotiation skills may not be strong enough to close the deal. The other side is represented so why wouldn't you have someone representing you.
- As a buyer, you will not have to worry about going through the process alone.
- By having a Real Estate Agent, you will have someone to explain the contracts and all necessary paperwork and answer your questions. Buying a home can be a stressful situation, so hand the stress off to the Real Estate Agent, we are accustom to handling the problems that may arise during the process.
- You will have someone that knows the ends and outs of the process and can guide you.
- Commitment - When you have signed the Buyers Brokerage Agreement there is a commitment from both the Real Estate Agent and the Buyer.
So why would you not want to have representation?