Don't think you need a buyers agent?
Buying a Home Alone?
Don’t think you need a Buyer’s Agent?? Make sure you watch this before deciding!
Bryce: Don't think you guys need a buyer's agent. Think again. Alright, guys, so we're in a very crazy market, not only across the nation, but also obviously here in Idaho, we see a lot of, you know, fizz bows for sale by owners, people that think they can just get around, you know, not having to use a real estate agent and it's so important and I'm not even a real estate agent know whether you use one or not doesn't, you know, do anything to me, but it really benefits you guys and here are a couple of reasons why. Jesse go and tell.
Jesse: Exactly! So why it's important to have a buyer's agent. The biggest one is, of course, a buyer's agent separate from the selling side, whether it's a seller or for sale by the owner. You have sole and separate representation. So as a buyer's agent, we're contractually obligated to represent you as a buyer and if you work with the listing agent or the seller, their interest is in the sell or selling the home or the sellers, the sellers rights, and you kind of come second the buyers. So there's a huge conflict of interest and that's number one. But the other pieces that a lot of people think about are not just purchase price, there's a lot more that goes into the purchase process after the offer is accepted. So yes, maybe you're like, okay, I'm good with that price. I'm gonna go directly to the listing agent or the seller and say, I'm going to the right, can you help me write up an offer. After that, there are several critical pieces to the purchase process, the inspection and inspection contingency, and the appraisal and appraisal contingency that could come up as a problem for you as the buyer, but you are working with someone who is representing the seller or you're working directly with the seller, and you probably won't be able to negotiate near as well or understand your rights as a buyer.
Bryce: So, potentially lose earnest money during that process.
Jesse: Exactly! Yeah, lose your deposit, lose your earnest money or just not know, what you have available to you to negotiate. So one of the big examples that we've had or seen personally is a lot of buyers don't necessarily understand all the ins and outs of a home. So if something comes up on that inspection, and it may be the looks and sounds major to you, it might be pretty minor. So you might be canceling a purchase over a $500 repair or someone could be negotiating with you for a much larger amount when you know it could be a very major and so that's the inspection contingent and then also on the appraisal contingency if you waive either of these you still have several rights to cancel the transaction and get your earnest money back and most buyers that aren't familiar with real estate may not know those.
Bryce: Exactly and they lose out on that guys, I've done multiple deals where we have a for sale by owner and you know, something comes up where I'm legally not allowed to facilitate you know, anything that would be you know, perceived as real estate advice. I'm not a licensed real estate agent I can't do that and then a lot of times I get asked those questions, and I legally cannot answer them and so, you know, you could be again losing earnest money not getting closing costs paid for when they potentially could be like, there's a whole set of questions that I get asked sometimes and again, I can't do it, because I'm not a licensed real estate agent and I think it's so critical, especially in this market to work with a buyer's agent and a seller's agent, depending on which party you're associated with.
Jesse: Exactly! So there are potential downsides and there's also just a lot of strategies that we see every single day and I've gone through over hundreds of transactions that we know how to make things work and get them done for our clients that, you know, not every buyer could do just by Googling how to purchase a home. Don't hesitate. There's no cost to even chat. There's no cost to use a buyer's agent. There's really absolutely no reason to not have one but if you are still on the fence, let's chat, and if I can convince you greatly. If not, you know good luck with your purchase.