| If you plan on buying a home and you plan on | | | | with a seller, not a buyer. There is no way an |
| representing yourself, think again. Many buyers these | | | | unrepresented buyer can tell whether or not the |
| days are very internet savvy and do a great deal of | | | | Listing Agent chooses to discount his or her |
| research online before contacting anyone about | | | | commission to the seller. |
| buying a house. However, this may not get you the | | | | Some Listing Agents will accept a variable rate |
| deal you expect. | | | | commission. What this means is that if the house sells |
| A number of people have discovered Zillow, which | | | | to an unrepresented seller, the Listing Agent will |
| estimates value of homes. People have also | | | | actually be paid a rate less than the full commission |
| discovered county tax appraisal district sites. County | | | | that was initially to be paid. So the unrepresented |
| Assessor sites may show the assessed value that | | | | seller doesn't have any benefit at all of a price |
| the taxing authority puts on a home to assess | | | | reduction. The seller simply pays less commission. |
| property taxes. Armed with this information, some | | | | Buyers - how well do you understand the home |
| buyers think they are pretty prepared to negotiate | | | | buying process? Do you understand escrow fees, the |
| with a selling agent. What they don't realize is that | | | | option period, where to find a good home inspector? |
| these sites are frequently not very accurate | | | | Can you read a title commitment? There is more to |
| compared to the actual market value of a home. | | | | buying a house than many people realize. With all of |
| Many unrepresented buyers also assume that a | | | | this in mind, the buyer should get representation. A |
| home has a 5% to 7% selling commission built into | | | | good Buyer's Agent will have access to real |
| the list price, assuming that the buyer's agent will be | | | | information about the market value of a property. |
| paid around half of that to bring a buyer. So | | | | The Buyer's Agent does this by comparing the house |
| unrepresented sellers go to the listing agent and | | | | the buyer is interested to recently sold properties |
| state that they know there may be a 3% reduction | | | | that compare favorably to it. The only accurate way |
| right off the top because they do not have a Buyer's | | | | to do this is to search the MLS. A buyer can not do |
| Agent. This also happens when some unrepresented | | | | this. A Buyer's Rep who is a member of that area's |
| sellers to straight to a builder's rep rather than being | | | | Board of REALTORS® can. |
| represented by a Buyer's Agent. | | | | A good Buyer's Rep will also guide the buyers |
| What the unrepresented sellers don't realize is that | | | | through the process. They will assist in the inspection |
| many builders don't negotiate much, if any, regardless | | | | process, help find a lender and a variety of other |
| of how much they planned on paying out as | | | | things in addition to negotiating the contract. |
| commission. This is also true of many Listing Agents | | | | So buyers should beware. If you choose to go it |
| and sellers. A Listing Agent negotiates a commission | | | | alone, you may not be as prepared as you think. |