Moorhead Real Estate Update | The Home Buyer Experience.
The majority of homebuyers want to save the most money possible when they buy a home. One way they often try to save money is by not hiring an agent. Since home sellers pay commission to both their listing agent and the buyer’s agent, some homebuyers go directly to the listing agent in an attempt to put the buyer agent’s commission back in their pocket.While at face value this tactic seems to make sense, it typically ends up costing the buyer a lot of money or prevents them from getting into the house they love. Below are three reasons why hiring a buyer’s agent first is the best move for a homebuyer.
Buyers are not market experts
Most buyers who aren’t working with an agent present an offer that is either far too low or just a little bit high, expecting the seller to counter. Unfortunately for these buyers, current market conditions combined with new digital marketing channels often mean that many sellers are receiving multiple purchase offers. If you miss the exact right value coming in, then a better-informed buyer will get your home. Unguided, inexperienced buyers often lose their dream home to an individual working with an experienced buyer’s agent
In the end, the buyer winds up having to settle for a different home or ends up paying more than he or she planned.
Listing agents want to please the seller
Unless a homebuyer works in the real estate field daily, it is unlikely that they possess enough knowledge about local housing market trends and home values to make a sound offer.
Buyers should understand those listing agents have their sellers’ best interests in mind, meaning they work to maximize profits for the seller and ensure the seller receives the best terms possible in the transaction. Negotiables such as closing costs, home warranty fees or repair costs can work in the seller’s or buyer’s favor. And you already know for whose the listing agents are working.
To help sellers further, listing agents may imply to potential buyers that there is high demand for a home to drive up the offer price. Without a knowledgeable real estate agent, homebuyers usually have no way of knowing precise market demand for a particular house. So, they often end up overpaying due to fear of loss.
This overpayment undermines the buyer’s intent in forgoing a buyer’s agent in the first place. Since sellers won’t have to pay the buyer agent’s commission fees, homebuyers working without a real estate agent are hoping to have the seller lower their overall asking price. While some sellers might agree to this, the homebuyers may still overpay if the initial asking price is not representative of actual market value.
The purchase agreement is more flexible than it seems
Homebuyers aren’t experts in real estate contracts, and they will have to rely on the listing agent to craft the purchase agreement. Unfortunately, this leaves the homebuyer at a considerable disadvantage.
Knowledgeable buyer’s agents know exactly how to use the purchase agreement to reduce costs for their homebuyer. Similarly, listing agents are well versed in how to use the purchase agreement to maximize profits for their sellers. Listing agents love working with agentless buyers because it almost always helps to exceed the bottom line expectations for the seller.
It is possible to purchase a home without using a buyer’s agent, but it often costs homebuyers more money than they save. Before making any decisions about whether or not to use a real estate agent, take some time to interview home buying specialists in Moorhead or Fargo and find out how they can save you money. You can always interview agents and still decide to do it alone.
Modern Market Realtors advice to you is to work with an agent who will use their knowledge of supply and demand in your specific niche of the housing market to help you understand the real market value of the home you wish to buy.
Have a great day Shannon and Jim