MYTH BUSTING: "I Don't Need a Buyer's Agent"
Melissa Infanzon
Prior to relocating to Northport, New York, Melissa spent 15 years in New York City, working as an Advertising Sales Executive for high profile digita...
Prior to relocating to Northport, New York, Melissa spent 15 years in New York City, working as an Advertising Sales Executive for high profile digita...
As bidding wars have become more and more ferocious, I have heard buyers incorrectly assume that not having a buyer’s agent gives them an advantage on purchasing their dream home. This is one of the scariest myths I have heard and a very faulty approach that will cost you time, money, and missed opportunities in securing your perfect home. For a buyer, purchasing a home is a highly emotional, oftentimes overwhelming decision; working with a buyer’s agent helps ensure the business side of the transaction is at the forefront of your decision-making process and allows you to make the smartest investment possible with the least amount of stress on your shoulders.
Let me dispel the 3 most common myths we hear when it comes to representing yourself as a buyer in a real estate transaction:
MYTH 1: The listing agent will look out for my best interest and disclose all the information I need to make an informed purchase decision
FALSE: A listing agent’s fiduciary duty is only to their seller - that means the listing agent’s responsibility is to stand by their seller’s price (no matter how inflated it might be), timelines, facts on the house, and so on. A listing agent will not help you with comparables in the market to know if it is a fair price, negotiate on your behalf, do due diligence to understand the purchase history of the house, work with the town to uncover any open permits on the property, find any non-CO’d parts of the house, get you the most accurate tax details, recommend reputable inspectors, attorneys, and so forth. Their job is to get their seller the highest and best offers. Without your own representation, you are at a disadvantage to making a fully educated business decision on the home you are purchasing.
MYTH 2: A listing agent is more likely to encourage a seller to take my offer if I do not have a buyer's agent because the listing agent then keeps all the commission
FALSE: Legally, a listing agent has to disclose all offers they receive & the seller makes the decision which offer makes the most sense for their needs. A listing agent advises the seller on offers but ultimately holds no power in the decision on which offer will be accepted.
MYTH 3: A seller saves money when a buyer comes direct since the seller will not have to pay a listing agent and a buyer’s agent commission
FALSE: Generally speaking, a listing agent and a seller will agree to a set commission before they list the property. The listing agent will then offer out a portion of that overall commission to a buyer’s agents and/or any cooperating agents. Meaning, the transaction has one set commission percentage that a seller has agreed to pay in totality, so the seller would not be saving money if there is only one party being represented.
As you can see, there is no real advantage to you as a buyer representing yourself, and in actuality, you will most likely hinder your home buying process by not seeking expert counsel. There is no cost to you as a buyer in enlisting the help of an agent and the wealth of knowledge & experience we bring to the table will ensure you are making a financially sound decision that will pay off for you in the long run.
Have any questions about working with buyer’s agents? Feel free to call Melissa at 774-521-9634
Melissa Infanzon | Long Island Real Estate Agents | Lucky to Live Here Realty
Prior to relocating to Northport, New York, Melissa spent 15 years in New York City, worki...