The #1 secret to getting a good deal

By
Services for Real Estate Pros with Colorado Private MLS

Most homebuyers want a good deal. That's certainly no secret, and there's certainly nothing wrong with that. There are as many theories and strategies about how to accomplish that as there are homebuyers.

Fortunately, there is one simple tool that study after study shows to be the best way to get a good price on a home, and that is to use a buyer's agent. A quick history for you first time buyers :

Traditionally and historically, real estate agents always worked for the sellers of property. If a family was moving from Virginia to Colorado, and I took them around in my car for 3 weeks and took them to lunch and told them all about how great it is to live in Colorado, I was still supposed to work for the sellers of every house we looked at and represent the seller's interests. Since we all show each others listings, I usually did not know the sellers, so all I could do was protect their price. It was a HORRIBLE way to do business. Recognizing that buyers needed representation, California and Colorado led the way, and most other states quickly followed, passing laws that allowed the real estate agent to work in the buyer's interest. Now, with a level playing field, the seller had an agent and the buyer had an agent. There have been many legal refinements to this over the years, but this is only a thumbnail sketch.

Since a buyer agent's job is, essentially, to get you the best deal possible, the idea of calling the listing agent directly because "They won't have to split the commission" doesn't work anymore. The commision is a prior agreement between the sellers and their agent.

Walking into the model home in a new community without an agent doesn't work either. Remember, the listing agent's job is to get as much as possible for THE SELLER.

The bottom line? Studies by Money Magazine, Kiplinger's, The Realty Report, NAR and the New York Times all show that homebuyers represented by buyer's agents during 2005 paid an average of 5-7% less for homes, depending on price range and part of the country. On a $300,000 house, that's as much as $21,000!

I don't know about you, but there have been times in life when I would have wrestled an alligator for $21,000, when all I had to do was use a buyer's agent. 

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