Why You Never Buy a Home From the Listing Agent

Why You Never Buy a Home From the Listing Agent

It seems like the normal thing to do: you are out looking for a new home and a property catches your eye, so you copy down the agent's name and number off the sign and give him or her a call. That one step may have just cost you several thousand dollars. I know about this firsthand as I've made this mistake myself.

A Realtor friend knew I was in the market for a home and finding one she thought we'd like set up a showing. We loved the location, the size and just minutes after we stepped inside we told her we wanted this house. We made what we thought was a very reasonable offer, about $2,500 below asking price for a house that had been on the market quite a while, but the owner countered at full price. We offered to split the difference but the owner wouldn't budge a nickel. We were disappointed in the negotiations but ended up buying it on their terms.

Later, another Realtor explained what probably happened. Even though we bought the home from a Realtor we considered our friend, she was the listing agent and as such she was obligated to get the highest price possible for the seller. She knew we really wanted that house and she knew what our budget was. It was her job to advise the seller to hold out for the full price.That was the last time I purchased a home without a buyer's agent on my side.

A buyers agent is just that, an agent who represents you as the buyer and works to be sure you are well informed and helps get you the best price. My buyers agent, Tina Herman, who I often refer to as the hardest working Realtor in town carries the Accredited Buyers Representative (ABR) designation after her name. That means she has been trained in the proper way to represent buyers and her knowledge and skills have saved me thousands.

The last time I used her I called and said I had a house I wanted to buy. She took down the information on the house I was looking at then set up showings at several other similar properties nearby. She wanted to be sure I knew what was on the market and the going prices for this kind of property. She skillfully guided us through the negotiations, letting the seller know we were looking at other properties which worked to our advantage. We ended up saving several thousand dollars more than I would have on my own and obtained other concessions I never would have thought of.

So before you hit the road looking for your next home, do your research and ask your friends and associates to recommend a buyer's agent. Look for their ABR designation in their ads and on their website. I will warn you it's an entirely different experience to walk through a property with your own agent as opposed to the sellers. It is far more beneficial when the sales pitch disappears and you have your own home buying expert with you. I guarantee you will come out ahead.

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