The Real Story…
News and commentary about the real estate market and related topics.
Dave Parrish, ABR®, CSP, GRI, ePRO®, REALTOR ®, RE/MAX MarketPlace
The opinions expressed here are my own and don’t necessarily represent those of RE/MAX International.
What you don’t know …
I’m sure you’ve heard it: What you don’t know can kill you! Sound a bit drastic… Well maybe it won’t kill you… maybe it will just create some pain!
We’re all guilty of it, at least from time-to-time… Thinking that because we’ve done something once (or watched someone else do it), we know how to do it… We think we know the important and critical stuff. Oh, but what we don’t know… that’s another thing.
What we don’t know can be divided into three sub groups:
- What we know we don’t know (Known Unknown)
- What we don’t know, that we don’t know (Unknown Unknown)
- What we think we know, that we are WRONG about (Unknown Mistakenly Known)
Yes, these unknowns are lurking everywhere ready to pounce upon us… to make us pay for our unknowing. The area of Real Estate is no exception.
Putting aside the case of Sellers that try to sell their own home… Noting only that six out of seven will eventually resort to calling a professional to do the job for them. Let’s look at the case of Buyers that go through the process “unrepresented” in their search and purchase of their home.
While it is required by state law for an agent to disclose to consumers the way real estate agents work with consumers in the state of Alabama, it is obvious that MOST Buyers still do not understand who represents who and why they are generally best served to have an agent represent them as a Buyer’s Agent.
While it is completely legal for an agent to represent both sides (Buyer and Seller) in the sale of a home, wouldn’t you feel safer represented by someone who represented you exclusively in the transaction… Someone whose allegiances are not split between Buyer and Seller… Someone who is free to give you all the pros and cons to be considered in this huge decision… Someone who can help to inform you on relevant market conditions and even specific market and historic information about those properties that interest you… Someone who can help you find the right home based on your wants, needs and desires. Someone in the know!
Yes an agent can work with you as a customer rather than as a client… In an arrangement where they do not owe to you, the customer, the contractual duties of an agent to a client… In an arrangement know as a Transaction Broker where the agent works without being your agent, fiduciary, or advocate.
“But I don’t want to have to pay a commission to the agent…” is a common complaint to those who resist having an agent work for them… Some how they feel like they will get a better deal working with the Seller’s Agent (who represents the interest of the Seller)!
So strikes again the plight of what Buyers do not seem to know!
You can have your cake and eat it too! You can have the services of a Buyer’s Agent working for you who agrees to accept the Seller’s commission paid to the Selling (Buyers’) Agent. The commission paid by the Seller is split between the Seller’s Agent (The Listing Agent) and the Selling Agent. If an agent represents both sides they earn both halves of the commission. Yes, you can receive first class service, probably save money with no commission paid by you!
That’s right you can have your own representation and have someone else pay for it… That’s like getting someone to work for your best interests through out the search, evaluation, negotiation and managing the transaction for you to make sure important steps aren’t missed that could kill the deal or cost you money… For FREE. All this and it not only doesn’t cost you… but will result in your best deal all the way around.
It really doesn’t make sense to not have your own agent working for you… But then you didn’t know!
May the market be with you.
