Buyers Agents and Why You Need One in South West Florida
There are so many people that don’t understand how this real estate transaction thing works. Many buyers that think they do and are going to save money on using the listing agent for their transaction. There are so many things wrong with this thought process that it will be hard to list them all. Many people in other states are used to a different kind of process. Every state has different rules, regulations and procedures for real estate transactions. For example some states allow for dual agency. This is something that most Realtors will agree is a very bad idea. Colorado does not allow for dual agency. Dual agency is when a real estate agent or broker represents both parties equally and has a fiduciary obligation to both. This is very difficult to achieve. How can an agent help a buyer write up an offer and then present the offer to the seller and say “i think this offer is too low and we should counter with a higher offer.” Also you have to think that the agent has already had a conversation with the sellers about what they believe the house is worth. So prior conversations have already taken place in a fiduciary manner. On the flip side in Colorado and many other states the broker can only be a transaction broker. What this means is the broker or agent can not help or advise in any way except in the explanation of the contract. The broker is only there to assure the transaction runs smoothly. They may not do anything but provide raw data and comps to each party. They may not advise on what they believe. So again what if the listing agent or broker has already had the conversation about the proper value and other things about the property? Hardly seems like it would be a true non-fiduciary situation.
The best analogy to use would be if you are arrested would you let the prosecution defend you? If someone is suing you would it be in you best interest to have their lawyer represent you or would be in your best interest to have your own representation? Most people would think that having your own representation would be best for you. Although some think “well if I use the listing broker I can negotiate them to get less money for commissions and offer less and save money on the purchase”. Well those people are wrong. If an agent “double ends” a deal (at least in the state of Colorado and other states) they will usually get the same (or very close to the same) commission they would if they only represented the seller and the buyer had their own representation. So they buyer at this point is a person negotiating a real estate transaction without really knowing how to do so. This will usually leave the buyer in a weaker position and possibly losing money in the long run.
Real estate agents and brokers do real estate transactions all day long. Buyers need to understand the importance of having someone in their corner. Someone guiding them and advising them what they should be doing a any point in the contract. It is their biggest investment and to go in without someone actually explaining market conditions and value is not really understanding how this whole thing works. There might be times that you can do a transaction and not need an agent representing you but if you might get better service with no additional cost to you and perhaps have a better outcome, since commissions are paid by the seller 99.9% of the time, wouldn’t it make more sense to use a buyer agent when you are buying your home?