Penny Pinchers Unite!
One can appreciate the lengths people will go to, to save money. Saving change in a piggy bank, cutting coupons, even shopping around for car insurance. I will admit it, I'm cheap, but I draw the line when it comes to potentially shooting myself in the foot. Us cheapskates sometimes have to be careful, our penny pinching ways can backfire, sometimes so much so that they can actually cost us more money in the long run.
As a real estate agent, one of the craziest penny pinching scheme's I see is the attempt to purchase or sell a home without a real estate agent. I know what you might be thinking, of course I want you to use an agent, that's how I make my living. But I can assure you, I would use an agent, especially since I am one!
The logic behind buying a home without an agent seems fairly straight forward, however, its fundamentally flawed. In our area the buyers agent is paid by the listing agent, the listing agent is paid a percentage of the sale by the seller. Most people think that by using the listing agent as their buyers agent, they will get a better price on the home because the seller won't have to pay as much commission, but this is just flat out wrong. The listing agent has signed an agency agreement with the seller, to represent the seller, and they have already negotiated their compensation with the seller. As a buyer you have no right to come in and try and change that amount, not to mention that if the sellers do change that amount, the seller is the one who will be spending less, not the buyer. Just because a seller may save a percentage on a commission does not mean that they are going to pass that along to the buyer.
There's more, by using the listing agent, who is representing you? While I, like most agents, will represent both the buyer and the seller in a transaction, it has to be done carefully. Otherwise neither party will feel that they were fully represented and may end up feeling that they got the short end of the stick. Personally if I have a buyer for my own listing, I will offer the buyer to have another agent in my office represent them. This way they have someone to confide in without thinking that I am sharing their personal information with the seller. They can then negotiate freely without wondering if I'm just trying to make a sale.
As a buyer without an agent, you are flying blind. You do have access to what homes have sold for, however you have to contact your local county for the information. Don't think that web sites with free information are always right. Many times I peruse sites like Zillow to find out what they are saying and find all sorts of incorrect information. The scary part is that many consumers use these sites without ever knowing that the information is completely incorrect. However, your local agent has access to all of this information, not to mention they can usually give you detailed information regarding the properties condition, the reason for the sale and any added amenities, all information which the county and those other web sites won't be able to provide. Without knowing what the other homes sold for, you can only make a guess based on it's listing price. It's impossible to tell if its overpriced for its neighborhood or if its a steal. You're only other option is the neighbors, rest assured, as friendly as they are, their information is never correct.
All of these reasons and I haven't even touched on how much work is involved that you never know about because your agent takes care of it, what the laws require or why you should use an agent to sell your home!
This is a subject that I could go on and on about for obvious reasons. Without the proper knowledge, buying and selling real estate without a real estate professional could potentially cost you time and money in the end. A thought that makes those penny pincher's cringe. So, if you are a self proclaimed cheapskate like me. Do your homework first. Find out exactly what you save yourself before you go down the path of representing yourself. You may find out that in the end having your own agent is money well spent.
As a buyer without an agent, you are flying blind. You do have access to what homes have sold for, however you have to contact your local county for the information. Don't think that web sites with free information are always right. Many times I peruse sites like Zillow to find out what they are saying and find all sorts of incorrect information. The scary part is that many consumers use these sites without ever knowing that the information is completely incorrect. However, your local agent has access to all of this information, not to mention they can usually give you detailed information regarding the properties condition, the reason for the sale and any added amenities, all information which the county and those other web sites won't be able to provide. Without knowing what the other homes sold for, you can only make a guess based on it's listing price. It's impossible to tell if its overpriced for its neighborhood or if its a steal. You're only other option is the neighbors, rest assured, as friendly as they are, their information is never correct.
All of these reasons and I haven't even touched on how much work is involved that you never know about because your agent takes care of it, what the laws require or why you should use an agent to sell your home!
This is a subject that I could go on and on about for obvious reasons. Without the proper knowledge, buying and selling real estate without a real estate professional could potentially cost you time and money in the end. A thought that makes those penny pincher's cringe. So, if you are a self proclaimed cheapskate like me. Do your homework first. Find out exactly what you save yourself before you go down the path of representing yourself. You may find out that in the end having your own agent is money well spent.
