It would seem that buying a home today, with all the new technology including a vast supply of Real Estate related websites would be a piece of cake right?
Well on the surface, we’re sure that that’s how many people feel when they first start to look for a home, that is until they find themselves in a variety of unfamiliar situations.
OK you have found the home you want to purchase, you have gone directly to the Listing agent and asked the agent to present an offer to the Seller. Sounds easy, however, by virtue of the Listing agent presenting an offer to the Seller on your behalf, the Listing agent has now become your agent too.
In California a Listing agent may represent both parties to a transaction/contract, although some states have banned this practice, called dual Agency. To represent two parties with opposing interests equally and with the fiduciary responsibility in which the term agency demands, is virtually impossible.
For example, attorneys must have a post graduate doctorate degree and pass a State Bar Exam in order to become licensed. Even with their tremendous training in agency relationships and conflict management, attorneys avoid dual agency because of the impossible situations it creates.
Furthermore a relationship between Seller and Listing Agent exists prior to any relationship you might have with that individual. Although one would like to believe that the interests of both parties could be represented equally what do you think the chances really are?
Hiring an experienced Agent/Realtor to represent your interests and your interests alone will better insure your protection in any transaction. Steve Lincoln has a California Bureau of Real Estate Brokers License. A Brokers license is only held by 4 % of the active Realtors in California. In order for an agent to sell property in the state of California, they must be employed and guided by a licensed Broker in this state.
“He who represents himself has a fool for a client” Abraham Lincoln
Representing yourself, with the prospect of saving some money, is next to impossible. Here’s why:
When a listing agent acquires a listing and signs a listing contract with a Seller, typically the forms/contracts used to acquire the listing, in California, are conducted on documents provided to practicing Realtors, by the California Association of Realtors library of legal documents. Contained within the library of documents are a few different variations of Listing Agreements. The most commonly used agreement is the Residential Listing Agreement (Exclusive Authorization and Right To Sell). Within that document, the Seller typically agrees to a commission payment to the listing Broker. Within this document, the Listing agent also agrees to participate in an MLS (Multiple Listing Service) and share a percentage of the commission paid by the Seller (typically half of the agreed commission).
Due to the arrangement between the Seller and Listing Broker, once you approach the listing agent to view the property, the Listing agent would have a claim to the entire commission (procuring cause). Even if you, as the Buyer made a claim to the commission it is illegal for a listing Broker to pay an unlicensed party a commission in most cases.
So, even if you were able to successfully negotiate a fair price, maneuver through the mountain of paperwork, escrow, inspections and the inevitable hiccups inherent to real estate transactions, your efforts would most likely have been in vain. Choosing to engage an experienced agent/Broker to assist you will ease the burden of the transaction tremendously.
And remember, in almost all instances, the compensation paid to the Buyers Broker is paid for entirely by the Seller, via the Listing Brokers Listing Agreement.
Steve Lincoln and the Lincoln Realty Group will be there with, and for you, providing you with expert advice, investment and negotiating insights and many many other skilled advantages to help you acquire your next property at the very best price.
Call Steve Today: 760-707-6033