Over dinner this past weekend, I listened to the story of a buyer who was told that they could save 1/2 the commission fees by not using an agent in their transaction. Who told him this? The listing agent. When I asked if this was put into the contract, the answer was no. They just "Assumed" this would happen. I assume it won't.
There are unscrupulous people in the world that will tell you something and then not follow through with what they tell you. I know this is hard to believe, but it happens. Oh, and the listing agent was related to the sellers and would receive a cut of the profits from the sale of the home. Can anyone say conflict of interest?
The truth is, buyers are usually not charged for their agents time and efforts. The seller pays this. Yes, this is in the price of the home, but there is no separate charge for the buyer's agent. Unless something is put into the contract contradicting this, when a listing agent sells a home to an unrepresented buyer, they get to keep all the commissions. They are not generally given back to the buyer or seller.
The most important issue though is lack of representation of the buyer. Most buyers really need someone to represent them and be there to answer their questions. Don't just assume that by purchasing a home unrepresented that you will save some money. The odds are that you won't.
To learn more about how the real world of real estate works, give us a call at den Boer Homes.