Why Use A Buyer Agent In Huntsville Alabama

By
Real Estate Agent with Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Huntsville AL
https://activerain.com/droplet/4Y2n

Why Use A Buyer Agent In Huntsville Alabama?

A perfect real life example of why you need your own buyer agent.

When purchasing a home in Huntsville, Alabama particularly new construction you may ask why you should use a buyer agent and not the on-site builders agent. Your logic may be that you can save money by going directly to the builder...after all there's one less Realtor involved...right? Well if your goal is to purchase a home under the best terms and conditions, save money by not overpaying and have an advocate in your corner...someone representing your best interests through every step of the home buying process and not the sellers or builders best interest then you might want to consider your own buyer agent. 

Look at it this way; the listing agent or builders on-site agent's job is to represent the seller's best interest which translates to reaching into the buyers pocket and getting the most money for the seller. Most builders do not allow their agents to represent the buyer and technically the listing or builder's agent has a fiduciary duty to the seller only! Using the listing agent is like a divorcing couple or people involved in a law suit using the same attorney...the attorney can't represent both parties fairly.

Real Life True Real Estate Story Gone Bad

I worked for several months with out of state clients showing them homes, providing market statistics, and offering them advice about home values in the specific area they were looking and, of course working in their best interest as always. When I was first introduced to them they told me that it was important that they didn't overpay and would be able to sell their home without losing money after being in a home for 5 years when retirement came around. Unfortunately my clients didn't like or agree with what I had to tell them especially when I advised against certain properties because they would be overpaying...they decided they would build new and deal directly with the builders on-site agent with the intention of saving money. The gentleman client said that his day job was to negotiate multi-million dollar contracts for the government and felt he didn't need my help with the builder...I think this may explain a lot regarding spending of your tax dollars in our government! Anyway, quoting the buyer exactly, additional reasons for building...and...reading between the lines why not to use me:

"I just have to deal with a builder not home owners

No appraisal from "XXXXXXXXX" Mortgage

We can get want we want

No home inspection"

All reasons why they absolutely needed a buyer agent!!  Before you ask if I had a Buyer Agency Agreement the answer is yes and I let them out of it! Guess I'm not representing that money grubbing perception people have of Realtors very well.  

Anyway, cutting through the rest of the muck, I think most Realtors know how this is going to end and it did! The buyers overpaid by what I estimated at the time to be $95,000 and who knows what was missed because of there being no home inspection and there was also the "no appraisal" issue. Fast Forward: The buyer for what ever reason had to sell the home 7 months after their purchase (not a distressed sale) for $128,000 off their original purchase price not including closing costs and attorney fees. Had I been involved they would not have overpaid and thrown away well over $128,000 on this home that originally sold just under $570,000!!! 

I have no doubt that these past clients are reading this and I just want them to know that I wish them well and at the very least glad they got to live in the house they wanted for a while.

So Why Use A Buyer Agent In Huntsville, Alabama or anywhere else for that matter? Only if you want to save your hard earned money.

Originally published at.....http://nicktpappas.com/?p=3752

Image courtesy.....freedigitalphotos.net/StuartMiles

Nick T Pappas

Visit Your Huntsville Real Estate Resource  

 

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  1. Elyse Berman, PA 06/23/2015 12:17 AM
Topic:
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Alabama Madison County Huntsville
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Rainmaker
768,918
Bruce Walter
Keller Williams Realty Lafayette/West Lafayette, Indiana - West Lafayette, IN

Nick, this is a great post how a buyer's agent can help look after the fiduciary interests of their client when dealing with a builder or sales rep in new construction.  

The appraisal and independent home inspection are for the protection of the buyer, and it is unfortunate how some buyers do not realize the value and protection a buyer's agent can add in a transaction.

Jun 18, 2015 10:41 AM #1
Ambassador
2,545,853
Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

There is never a good reason for a buyer to not have their own representation especially when the fees normally come from the seller.  If that buyer didn't read this, a quick email with the link would be appropriate

Jun 18, 2015 11:46 AM #2
Rainmaker
2,224,073
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Nick. The buyer never spends any more money to buy a home, so why not be represented? It makes no sense not to be.

Jun 18, 2015 08:07 PM #3
Rainmaker
4,796,409
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Hi Nick.  Unfortunately I see this type of thing happening all the time.  Buyers still believe that they can make the best deal with the builder because there's no other person involved.  Though, they are most often totally unaware of what they can get or need to do.

Jun 18, 2015 09:53 PM #4
Rainmaker
4,001,552
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Nick, sometimes you just have to shake your head, especially when he negotiated for a living!   They will find out that they DID not get a good deal, and sure hope they do not run into problems with the new build, as they have NO REPRESENTATION! 

Jun 19, 2015 12:46 AM #5
Ambassador
3,071,971
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Buyers often think they will get a better deal if they don't go in with an agent to new construction.  They don't understand the concept of comps and keeping values up.  That sales price doesn't get lower because they have no representation.  But they can definitely get better deals with us in their corner.  

Jun 19, 2015 04:44 AM #6
Ambassador
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Nick I hate doing loans when the Buyer and Seller is not represented by a Realtor(s).  Things never seem to go right when Realtors are not involved, and IF we make it to the Closing table, all involved usually which a Realtor had been involved.

Jun 19, 2015 06:14 AM #7
Rainmaker
1,248,513
Alan Kirkpatrick
Austin Texas Homes - Round Rock, TX
Alan in Austin

Nick T Pappas 

 

Very well said. Each party to a transaction should have a representative. Have a wonderful week. 

Jun 21, 2015 02:13 PM #8
Rainmaker
5,220,800
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is good reading for prospective home buyers.

Have a great day on this first Monday of summer!

Jun 22, 2015 02:30 AM #9
Rainmaker
864,621
Elyse Berman, PA
Best Connections Realty, Inc. - Boca Raton, FL
Boca Raton FL (561) 716-7824 CRS, ABR, GRI,ePR

Nick T Pappas This is a familiar story.  The builders outsmart them.  It's similar to calling the listing agent thinking they're going to get money off instead of using a buyer's agent. 

Jun 22, 2015 11:58 PM #10
Rainmaker
679,819
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

You will never get the best new construction deal being unrepresented. The agent working for the builder is there to drive up prices not drive them down. 

Jun 23, 2015 12:07 AM #11
Rainmaker
1,307,810
Nick T Pappas
Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Hun... - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

I think buyers and sellers for that matter can sometimes be their own worst enemy. They are so driven to save a buck that they can't see the forest for the trees. The unfortunate part of this was that this couple had a plan to be better off or at least no worse off when they sold this home...$128,000+ in the hole is a huge loss for anyone! 

Jun 23, 2015 12:41 AM #12
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Karen Kruschka
RE/MAX Executives - Woodbridge, VA
- "My Experience Isn't Expensive - It's PRICELESS"

Nick T Pappas Your expertise shines through on this post

Jun 23, 2015 03:15 AM #13
Rainmaker
1,481,799
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Nick, real estate transaction is challenging enough for professionals, I wouldn't even think about acting as a Realtor if I was a buyer. Great post!

Jun 23, 2015 04:19 AM #14
Rainmaker
1,558,015
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Having a buyers agent is what every buyer should think about.  Why they would want to discuss their most expensive purchase -- which for some equates to the largest loan amount -- to the agent working for the seller has always been a concept I've never understood.  I'm in a deal now and it's a tight market.  I've asked for seller concessions which would benefit my client.  AND, I think we're going to get them!!  A buyer wouldn't even know what to ask for!

Jun 23, 2015 04:22 AM #15
Rainmaker
1,779,437
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

Well there is no doubt that the drill for buyers is to connect with Nick Pappas in Huntsville AL and he will lead the right guided way!

Jun 23, 2015 10:11 AM #16
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Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

Excellent blog Nick. You make some very strong points. I personally suggest Nick T Pappas as a buyer Agent In Huntsville Alabama. 

Jun 24, 2015 02:22 AM #17
Rainmaker
2,471,232
Rebecca Gaujot, Realtor®
Vision Quest Realty - Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

Nick, keeping this for future homebuyers in case they want to try it on their own. Excellent post.

Jun 24, 2015 11:22 AM #18
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Nick T Pappas

Madison & Huntsville Alabama Real Estate Resource
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