I found Doug's blog today and thought he really nailed the reasons why a prospective buyer should get their own representation. I think this is important information for a real estate agent as well. Good advice and reasons why buyer's should have a professional advocating on their behalf.
Buyers will often call "the name on the sign" in the hopes of securing a better deal. After all, who knows more inside information about a home than the listing agent? In theory the logic is sound, but let's take a moment to see how this logic falters in practice...
1) The Listing agent represents the seller-- We have a contract to secure the highest price, and best terms for our seller clients. In fact, we have to put the seller's needs ahead of our own. If we are advocating "best terms" for our seller, guess who is advocating for you?
2) Agents typically cannot negotiate commission-- Prior to becoming an agent, I fell for this logic myself. After all, the agent can cut part of his/her commission to make the deal work, right? Sellers agree to a certain commission with the Sponsoring Broker of the firm. Guess how willing most brokers are to give away money?
3) Even if they can cut commission, most agents will not-- A buyer represents a second deal for the agent. Why would an agent take on a second work load without compensation? Do you work Tuesday for free because the boss paid you for Monday?
4) Disclosing "insider information" can cost an agent his practice-- "Relax, my seller HAS to sell in 30 days or else" type statements can get an agent in a ton of trouble. And if the agent does engage is such behavior he/she is likely to throw you under the bus as well.
5) Foreclosure agents are graded based on performance-- Think you are going to steal that listing for pennies on the dollar by working with the listing agent? Think again. Foreclosure companies grade their agents on the transaction terms. The agent who consistently under performs will likely be replaced.
When searching for your home find an agent to represent YOUR interests. In most cases such representation costs the buyer nothing out of pocket. Need help in Central Louisiana? Call Doug Rogers with Bayou Properties Realty today (318) 613-1994.
Bayou Properties Realty