How could that be? Why? Does not every real estate transaction need a Buyer ... and a Seller? Of course they do do.
If they successfully arrange for the Seller. Their responsibilities are generally paid by the Seller. They are a qualified buyer who agreements, executes and closes on the deal, they receive their commission.
Ideally, some Realtor & # 39; s would only to stay in the MLS online, advertise the house, hold open houses if necessary and present offers as they come in, but if they consummate a sale, they get paid. work with Sellers if they could.
Generally No. If the realtor that you are working with helps you, you can decide to buy a house, do you have to pay the commission to a purchase. They get paid their commission ... from the Seller. Who did they work really for?
Even though they are helping you ... the Buyer, by giving you advice and the field. They are still paid by the Seller of the home you end up purchasing.
If you see the conflict of interest here? If both the Seller & # 39; s Realtor and your realtor are being paid by the Seller, what kind of offers are they making on your behalf.
I have actually witnessed a situation where the Buyer told their real fortor to place an offer for $ 199,000, but I am willing to go up to $ 215,000 if needed. The house was listed with an offering price of $ 225,000
Guess what "your" Realtor is obliged to do when present present your offer to the Seller and Seller & # 39; s Realtor?
It went like this.
I have been made to a young couple that wants to offer $ 199,000 for your nice offer, they have been pre-approved and their purchase has no contingencies. I have also been told that they are willing to go as high as $ 215,000 for the property ...
What do you think the Seller and Seller & # 39; s Realtor are going to do? Accept your $ 199,000 offer?
Of course not, they will counter your offer a lot more than the $ 215,000 and then have you counter offer back with $ 215,000.
Did they fight for your best price? Did they get paid a higher commission on $ 215,000 to on $ 199,000? Who did they really work for?
When you are dealing with a realtor, you need to know who they work for before you allow them to negotiate on your behalf.
For many Realtor ', Sellers take up too much time and effort. Driving around, looking at houses, never finding the right house ... it makes them wonder if you will ever buy a house. Or maybe you will find a FSBO, For Sale By Owner and cut them out of the transaction entirely.
At least with Seller & # 39; s, if someone brings them a Buyer ... they got paid their commission. I hope you can see why many Realtors, do not very like working with Buyers.
If you are always concerned with you, you should always be concerned with and know who is paying their commission? If you are looking to buy a house or know anyone that is thinking it, please sure sure to Share this information with them.
For a simple solution to this problem, check out my new book entitled - How Much House Can I REALLY Afford? - on Amazon.com.
This article is just one of the many "Common Pitfalls to Avoid" That one covered in the book. Any one of them could cost thousands of dollars, cause headaches, plenty of stress and arguments in the process.
