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The risk to anyone buying is that the salespeople will steer you their people who, if you read the many other threads, regret being led around the process without any true represtation resulting in unexpected repairs after the commissions have been paid.
I think the question is whether you can afford not to use a real estate lawyer to protect the buyer, or sellers, interests while negotiating one of the largest purchases most families make in their life. Anyone selling anything knows they must factor into the price the cost of making a sale. If you buy a can of coffee at the store you are paying everyone else in the food chain who handled the product. In accounting it is called the cost of goods sold. Selling a house is the same, the cost to the seller to pay a salesperson their outrageous commission is shifted to the buyer. This also happens when you own a mutual fund, expenses are paid out before you are paid your share. Charges, such as taxes and commissions, are taken from the fund/sale before your distributions are made. Who pays the commission is always the buyer who pays more than they would have without a salesperson being involved. It is the cost of the sale to the seller passed along to the buyer.
... The only person standing to lose out in that scenario is the seller's agent. This should have zero influence with a seller as to whether or not a buyer is represented by their own agent.
I'm not sure you understand how a FISBO works. There is no seller's agent.
There are always going to be someone that doesn't see the value in it certain things. Such as mac vs pc, samsung vs element and on and on. This is one of those times.
This is a red herring argument. I really doesn't have anything to do with the OP's question and why many of us here have stated reasons as to why you don't want to sign a buyer's agency contract.
I think the real issue here is that a lot of people are talked into these things without knowing exactly what's in the contract they are signing. And this is by design because, as demonstrated here, it's extremely difficult to get the real estate industry to fess up to what these contracts are really for. Answers to that question are always disingenuous at best.
This is a red herring argument. I really doesn't have anything to do with the OP's question and why many of us here have stated reasons as to why you don't want to sign a buyer's agency contract.
I think the real issue here is that a lot of people are talked into these things without knowing exactly what's in the contract they are signing. And this is by design because, as demonstrated here, it's extremely difficult to get the real estate industry to fess up to what these contracts are really for. Answers to that question are always disingenuous at best.
Honestly, all I got from all your posts was that you don't see the value in having a buyer's agent. Those reasons you stated are why you don't see the value. I get that. I do agree a person should ALWAYS read fully what they are signing and getting into. But because they don't isn't a reason why not to use an agent.
I could go on and on why you should use an agent but you will just shoot them down. But I won't bother, you are set in your ways just as I am set in mine.
I'm not sure you understand how a FISBO works. There is no seller's agent.
Quote:
Originally Posted by ozgal
The seller has already accounted for it by choosing to employ a seller's agent in the first place.
Excluding a FSBO scenario, the seller isn't having to account for the presence of a buyer's agent in the transaction in any way. They have negotiated with their own agent for a 6% fee and all they will pay, regardless of any other agency involved, is 6%. The only person standing to lose out in that scenario is the seller's agent. This should have zero influence with a seller as to whether or not a buyer is represented by their own agent.
I understand perfectly well. If you are going to clip a quote, please be sure not to exclude pertinent information in order to make your point.
....
I could go on and on why you should use an agent but you will just shoot them down. But I won't bother, you are set in your ways just as I am set in mine.
You don't seem to understand what is being asked. I never ever said there was no value to a real estate agent. This topic doesn't address that. Let's be clear:
You can and should take advantage of the services that real estate agents provide when you are purchasing a home. You Do Not Need To Sign A Buyer's Agency Agreement.
The question asked in this topic is should you sign a buyer's agency in addition to this? What is the value in doing so?
Answer: None
There isn't one extra service that you will get from a real estate agency by signing a Buyer's Agency Contract. If there is, it hasn't been mentioned here. The myth, "they are working for you", has already been demonstrated to be wrong in this topic. Sign that agreement however and you are assuming significant liability to protect the interests of the real estate agency that your are dealing with.
Buyer's agency benefits the real estate agent, not you.
This is a red herring argument. I really doesn't have anything to do with the OP's question and why many of us here have stated reasons as to why you don't want to sign a buyer's agency contract.
I think the real issue here is that a lot of people are talked into these things without knowing exactly what's in the contract they are signing. And this is by design because, as demonstrated here, it's extremely difficult to get the real estate industry to fess up to what these contracts are really for. Answers to that question are always disingenuous at best.
Well said!
The commission structure needs to be changed to acurately reflect the true of value of filling out a form. No one should sign a contract, especially a first time buyer/seller, without a lawyer protecting your rights, the commissioned sales people have their NAR and other groups watching out for their industry.
You don't seem to understand what is being asked. I never ever said there was no value to a real estate agent. This topic doesn't address that. Let's be clear:
You can and should take advantage of the services that real estate agents provide when you are purchasing a home. You Do Not Need To Sign A Buyer's Agency Agreement.
The question asked in this topic is should you sign a buyer's agency in addition to this? What is the value in doing so?
Answer: None
There isn't one extra service that you will get from a real estate agency by signing a Buyer's Agency Contract. If there is, it hasn't been mentioned here. The myth, "they are working for you", has already been demonstrated to be wrong in this topic. Sign that agreement however and you are assuming significant liability to protect the interests of the real estate agency that your are dealing with.
Buyer's agency benefits the real estate agent, not you.
Simple answer and my last on this topic - you are just so wrong I have to chime in again.
If you are a buyer would you want an agent working for YOU or working for the SELLER?
Personally, I want one working for me. Since it costs me nothing, typically only buyers agents will get paid for selling a FSBO, I don't want the sellers best interests over mine.
That is why I used a buyers agent, and would recommend one especially if you are moving to a new place that you are not familiar with.
Either way the agent is getting paid by the seller not by you - so why wouldn't you want one working for you?
The agreements are also for a limited time and limited areas, in some areas there are exclusive and non-exclusive agency agreements. Maybe that would make you happier.
If you are a buyer would you want an agent working for YOU or working for the SELLER?...
I asked you exactly what this means. You finally admitted that it was that your job, as a buyer's agent, was to sell the seller to the buyer. This isn't working for the buyer. This is working for seller and yourself. Then you said your words are being twisted and didn't want to talk about it further.
It's a perfect demonstration that the buyer gets nothing by signing one of these buyer's agency contracts.
Last edited by WaldoKitty; 11-25-2014 at 12:30 AM..
I asked you exactly what this means. You finally admitted that it was that your job, as a buyer's agent, was to sell the seller to the buyer. This isn't working for the buyer. This is working for seller and yourself. Then you said your words are being twisted and didn't want to talk about it further.
It's a perfect demonstration that the buyer gets nothing by signing one of these buyer's agency contracts.
That is exactly the opposite of what I said - this is what I wrote "
It's not always just numbers. You have to sell your buyer to the seller. There are ways to do it that I have learned over the years. If the buyer likes the seller that helps. You have to make a case as to why your buyer is an excellent buyer."
Feel free to scroll up and see it for yourself.
That IS working for the buyer.
Also proves my point about words being twisted.
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