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Buyers Smart to Work with Real Estate Professional - 2009-07-19 |
I recently had the privilege of visiting with a group of prospective homebuyers, listening to their concerns and trying to answer some of their questions. There was one question asked more often than any other, and here it is:
Q: In this market, many sellers have given up on agents and are trying to sell without an agent. Their signs often read "For Sale By Owner" or FSBO. Isn't it wise to approach these sellers directly and try to save the commission dollars in a lowered offering price?
A: In my opinion, that's not a smart route to take. I must begin by pointing out that I am not a Realtor and I have no axe to grind in this matter. But this is my observation: in most cases, agents today more than earn their commission, whatever that amount is.
In this challenging market, one of the most important elements of homebuying success is to have an experienced agent assist you in the task of shopping and comparing among the many homes that may be right for you.
Everyone knows that today we have lots of supply and little demand - that's the definition of a buyer's market. All the more reason to equip yourself with an experienced professional to prevent you from making mistakes.
In addition, agents have direct access to previous neighborhood listing activity as well as county tax records. This data is critical in helping a buyer compare one house to another and learning about conditions of past sales. With so many foreclosures being resold today, you have to be able to discern the real sales from the forced ones.
Finally, real estate agents are trained to make sure that written agreements are valid and enforceable, and they will make sure all the i's are dotted and the t's are crossed. In other words, your agent will work to make sure your purchase is shepherded to a successful conclusion.
Is it possible to buy a house on your own directly from an owner? Of course it is, and it happens every day. But my advice is to take advantage of professional assistance.
Most sellers, even FSBO sellers, will entertain the idea of paying a reasonable commission to your agent for services rendered. And what good is a contract between buyer and seller if it fails to reach the closing table?
The answer is that it's worse than no contract at all. A failed contract wastes the time and energy of all parties, and discourages both buyer and seller going forward.
My experience has been that sales guided by an experienced real estate professional have a much higher chance of getting to closing, especially in today's difficult mortgage market.
Questions or comments?
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