Home buyers must keep several things in mind. A top-notch buyer’s agent represents your best interests. A buyer’s agent has a fiduciary relationship with the buyer, and divulges information to the buyer that materially affects a buyer’s best interests, even if that information is unfavorable to the seller.
The best buyer’s agent places your needs above their own. When you go out to purchase your home without an agent, you give up all of these things.
The biggest problems occur when a buyer tries to purchase a for sale by owner home without a Realtor.
One of the biggest advantages of a Realtor is that he or she is an expert on the neighborhoods in the area you are buying. They are familiar with the school districts, zoning, HOA, property taxes, mello-roos, property values, commute times, etc.
Thinking of getting a break on the commission.
The seller’s agent and your agent traditionally split the commission. Lots of buyers shun using an agent in the hopes of discounting the commission because one agent is not in the picture anymore which seems logical.
However, the seller’s agent (listing agent) usually has a listing agreement that the seller will pay 5-6% of the sales price regardless of a buyer’s agent being present or not. So, it’s unwise to believe that the listing agent will cut their commission. Yet, some agents do just to get the sale through, especially the large companies.
Negotiating
Are your negotiating skills well developed? The majority of homebuyers are not used to writing offers and have mastered the art of negotiation. Your week is probably consumed by 40+ hours a week for your job, then your kids, and then your outside activities.
Real estate agents on the other hand negotiate for multiple clients each week or month, so this is this job and the good ones know how to negotiate on price. They understand what can affect home values just like the listing agent does. Don’t expect to come out on top of the negotiation side simply because you are a CEO or did six or more years of college.
Added Proof
The difference between a buyers and sellers agent is huge. When a buyer goes straight to the listing agent you lose out on having an agent represent your best interest. The listing agent owes a fiduciary duty to the seller, first and foremost. Their job is to get the highest and best price for the seller period.
You may still want to save some money by using a real estate lawyer. According to the California Bureau of Real Estate. A lawyer can become a real estate broker right away. They can bypass the sale agent license s their educational requirements surpass that of a mere sales agent.
Disadvantages of Hiring a Real Estate Lawyer
A real estate lawyer may not have the negotiating experience or experience of a sales agent. In this case, education does not make you an expert or the preferred choice.
Another drawback of using a lawyer is they are not usually available to talk to you after 6pm on weeknights. And you want to go under contract with on a large transaction with this limited availability?
Real estate lawyers mostly handle litigation or legal aspects of real estate transactions such as a deal that went sour and buyers want their earnest money deposit returned.
They don’t have access to real-time active homes available on the market? Zillow is notoriously lists property’s late. I cannot count the number of times that I personal called about a home that showed it was listed in one day is already under contract.
A buyer’s agent is a great choice when looking to buy a home, especially if you are a first-time home buyer in Orange County.