While some buyers think that they can purchase a home on their own, without representation by a buyer agent, there are plenty of reasons why they shouldn’t.
One solid reason is that, although they may think that they are saving money on commission rates, it can actually end up being more costly in the end.
As a buyer, if you have signed a buyer’s representation agreement, you will be treated as a client, receiving a higher level of service. Your Realtor will now be representing you, forming a fiduciary relationship with you, and pledging loyalty to you.
Agents are bound by common law to act in their client’s best interest through a buyer’s representation agreement. Moreover, a Realtor, a real estate agent who is a member of the National Association of Realtors, is held to a higher ethical standard and must adhere to a strict code of ethics.
A client will benefit from their real estate agent’s easy access to all other properties listed by other brokers and the ease in coordinating appointments to see homes. Additionally, realtors have access to more listings that may not be found online.
Many times properties are available but not actively advertised. An agent with a well-connected brokerage can provide access to more of these opportunities through fellow agents.
Realtors provide local connections and valuable resources for help in the process of buying or selling a home. Mortgage brokers, real estate attorneys, home inspectors, home stagers, interior designers and movers are all in a Realtor’s network.
Clients can expect better negotiations through a Realtor, who can convey their concerns as a messenger. A Realtor is in a better position to negotiate without offending homeowners and can communicate in tough transactions without getting too personal.
Buying a home usually requires dozens of forms, reports and other technical documents.
Realtors have extensive knowledge about real estate contracts, necessary disclosures and contingencies, and can help provide invaluable protection for clients that may need to get out of a contract.
Realtors have the expertise to help prepare a deal that suits a client’s needs while avoiding serious delays or costly mistakes.
Buyers may believe they can save some money on the home by not having an agent involved. However, unless buyer and seller agree to split the potential savings, they can’t both save the commission.
Additionally, if a buyer is without representation, he or she is alone in the negotiation, trying to act in his or her own best interest. Buyers who have been duped about multiple offers or a home’s condition, may find they have no recourse.
A buyer will most likely need to seek legal counsel for their closing, however, having a lawyer on retainer to talk about potentially buying a house could cost far more than an agent’s commissions by the time the transaction is complete.
Diane Farrell is a realtor with Houlihan Lawrence in Darien. A 20-year town resident, she is a board member of the Tree Conservancy of Darien. Her marketing and public relations business, Farrell Marketing and Media is based in Darien. You can reach her at firstname.lastname@example.org or (203) 984-0644.
- Ban on ‘House For Sale’ Signs Again Up for Consideration in New Canaan (Aug. 1)
- Federal Realty Buys Building Next to Stop & Shop Entrance; Post Road Retail Building Sold (July 26)
Darien home sales:
- Hillside Ave Home Goes for $1.9 Million and Other Darien Home Sales (July 26)
- Birch Road Home Sells for $1.96 Million and Other Darien Home Sales (July 20)
- Old Oak Road Home Sells for $1,050,000 and Other Darien Home Sales (July 12)
Darien & Rowayton Real Estate Reports:
- Darien & Rowayton Real Estate Report: July 26 to Aug 2 (Aug. 2)
- Darien & Rowayton Real Estate Report: July 19 to 26 (July 26)
- Darien & Rowayton Real Estate Report: July 12 to 19 (July 19)
Farrell on Real Estate: