So You Think You Don’t Need To Use An Agent?

As discussed in last week’s post, some people want to try to purchase a home on their own without an agent representing them. Some say, “I will just work with the listing agent.” I’m just going to say it . . . Bad Idea. I have heard others say it’s like getting a divorce and using the same attorney as your spouse.

The listing agent works for the seller. They want to get the best price for the seller with the least expenses and they owe you nothing. Their loyalty is to the seller. They might help you with your offer and discuss what you want to offer for the home but they can’t give you any advice. I always recommend to those not using an agent, that you have an attorney review the offer contract to ensure everything is as agreed upon. If they accept your offer, you are on your own to work with the Title Company, get inspections set up, negotiate repairs, understand timelines and deadlines in the contract, and coordinate all communication. The listing agent is under no obligation to help you with any of that. And that’s if there are no issues with deeds, liens against property, title issues, surveys, etc but if there are, do you feel comfortable handling those?

Here is what a good buyer agent does:

1. Has access to homes, scheduling apps, and disclosure documents not directly available to the public
2. Can prepare a CMA (Comparative Market Analysis) to verify if a home is in the right price range and help pinpoint a competitive offer that will be taken seriously—without going overboard. A CMA compares a property to other recently sold homes similar in location, size, and features.
3. Has access to all the state forms needed to prepare an offer for a home and any additional forms and addenda to the contract to meet federal guidelines. Also has access to legally approved language for clauses that might amend the contract.
4. Understands and manages the timelines for the earnest money process, financing deadlines, inspection period, repair negotiation period, extensions of deadlines, and closing requirements.
5. Has a team of people for various needs – attorneys, title companies, inspectors, appraisers, surveyors, other specialty agents and team members, brokers, compliance oversight, and others.
6. Has experience with unusual situations that they have dealt with in the past. They have other agents and brokers they can go to with questions about situations they haven’t encountered.
7. They work for YOU. They have no loyalty to the seller. Their loyalty is to you and to protect your interests in a transaction. They negotiate FOR YOU.

You need someone on your side. In fact, when I have a listing and am asked to help a buyer who is unrepresented, I recommend they either get an agent or I can refer them to an agent in our office. I explain all the reasons why it would not be a good idea to be unrepresented. And I signed a contract to represent the seller, so where is my loyalty to them if I work as a Facilitator (not representing the buyer or seller, only doing the paperwork for the transaction)? I feel I owe my seller, and their faith in me, more loyalty than that. If a buyer insists on being unrepresented, I will help them, but only after they completely understand that I can give them no advice and that I represent my client, the seller.

When you see the amount that real estate agents are paid, it might seem like a lot. I’m not one of those agents who lists out all of the expenses, fees, and costs of being an agent. It’s part of doing business, a business that I love. The average salary for agents in the US is $46,000 per year. And we work hard for it and take pride in what we do. I am WORTH what I am paid.

Use an agent. Let them fight for you in the process of what is, most likely, the largest and most important purchase of your life – your home. We are worth it.