Sunday, August 29, 2010

Using an Agent as a Buyer

So, I was talking with a buyer today who was a friend of a friend and he seemed a little hesitant to ask for help with finding a house. Like most people, he was calling on the signs of the houses he was interested in. While thats great for the listing agent i.e. the person whose signs your calling on. Leading to double commissions, both sides of the deal and other benefits for the selling agent it can be not so great for the buyer. While most agents are honest and hard working sometimes it can be hard to represent both sides of fairly. I mean, after all, in this market a home thats not priced competivly can be stuck on the market for six months. Thats half a year of conversing with the seller, doing open houses with them and getting to know them, as opposed to just picking up the phone and meeting a buyer and trying to get them to write a contract and getting it to close in the next 30 days. Hey, I'm just being honest.
Well, I'm off topic but basically what I am trying to get at, is how the commission works when you use an agent to help you buy. The selling agent gets a listing. Lets say they get it for 6 percent of the price the house will eventually sell for. That agent designates a percentage of that to go to the real estate agent that brings them a buyer. So we will say 3% goes to the buyers agent. This is money already being offered, not something that the buyer has to pay. These cost have already been factored. Basically the listing agent is paying (and in some cases pleading) with another agent to bring them a buyer and share in the commission. This is great because it gets the often times not represented seller someone to represent them, someone to explain contracts to them, make the purchase convienent and look out for their best interest. Oh and someone else to drive them around! So, all in all it makes a lot of sense to use a buyers agent!

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