WHAT BUYERS IN UTAH SHOULD NOT DO
Last week, I received a call from a potential buyer on one of my listings in Sandy, Utah. After determining that the house did not fit their needs, I inquired as to whether they were working with a real estate agent to assist them in finding and purchasing a house. Their response: "I just have been calling the agent on the sign and have been dealing directly with them."
In Utah, the seller's agent has fiduciary duties to their seller that include: loyalty, obedience, full disclosure, confidentiality, reasonable care, as well as others that are required by Utah state law. When calling the agent who has listed the property, you are dealing directly with the person who is legally bound to protect the seller's best interests. This doesn't fare well for the unrepresented buyer.
The Problem, Part II:
Many buyers think that they can get a better "deal" by working directly with the seller's agent. The buyer may attempt to ask the seller's agent to reduce their commission in hopes to purchase the house at a lower price. This line of thought, while common, is flawed. The seller's agent signs a contract with the seller that lays out the total amount of commission to be paid to the seller's agent. Then, the seller's agent typically "shares" this commission with a cooperating agent (i.e., the potential buyer's agent). Even if the seller's agent is representing the buyer, the total amount of the contracted commission is still due to the seller's agent. Some agents MAY reduce the commission owed, some WILL NOT. Further, the buyer won't know whether the agent will do this until negotiations start. This, coupled with the limited amount of fiduciary duties owed to a buyer that is represented by the seller's agent, is a recipe for potential disaster.
Because of the lack of fiduciary duties owed to a potential buyer by the listing agent, please find and hire a buyer's agent who will help protect your interests in finding, negotiating, and closing a real estate purchase. In my experience, 99.9% of the time (in Utah) the seller's agent will share the negotiated commission with the buyer's agent. Hence, it typically won't cost you anything extra to use a buyer's agent and will more than likely end up saving you money in the long-run.
This agent, using their experience, will be able to help you negotiate the purchase contract with terms acceptable to you, counsel you in order to avoid common pitfalls throughout the process, and protect you in what will probably be the largest financial decision of your life.
If you would like more information on how I work with buyers to protect their interests, please contact me using the information below. To search the available properties for sale in Utah, please visit my website: www.SmallLakeCity.com.
Subscribe to CommentsComment