This sentence/statement comes up far too often as people begin their search for their dream home.
Many people mistakenly feel that if they work with the listing agent they will somehow be able to get a better deal, save on commission or even be paid a kick-back from the listing agent because they do not have representation by another agent.
I have to let you know a few things here because as I have explained in my Open Houses and in person to my clients, the Listing Agent cannot represent your best interests as a buyer.
You are thinking "Why?" - Well,... Let me tell you,..
Think of it this way. If you were in court and were going to have to try and win an argument in front of a judge,..would you want the lawyer for the opposing side to argue your case?
Of Course NOT! You would know that they have a job to get the best deal for their clients and not for YOU!
This is the same in a Real Estate Transaction. The agent who is representing the seller and is the Listing Agent has a job to do and that job is to get the highest and best price for their client-the seller. They cannot legally even begin to get you a better deal-because they are already obligated to get their "Boss" the "Seller" the best deal they can.
I have also heard that some people think that the commission will be less and in turn will make the purchase price less if they do not bring in a Licensed Realtor to represent their best interests. This is NOT TRUE.
The commission has already been written into the sales price and the listing agreement before they even met you as a potential buyer. Secondly it is illegal and unethical if the listing agent says they can pay you as a buyer part of the commission price back to you if you do not bring in a Realtor to represent you.
Think about that for just a moment. If you were a buyer of a home and you made a fair offer to purchase the home and you were working within a legal arrangement with your Licensed Realtor and your offer was higher or better than the other offers and you found out that the Listing Agent had an insider deal to sell the home for less to someone else because they choose to not have a Buyer's Agent represent them and they said they would pay that buyer back money if they worked without an Agent/Realtor? You would be FURIOUS AND RIGHTLY SO.
You would be mad,..very very mad. The whole process would be considered unfair to you - which it would be. This is why California has taken steps to protect the Buyer in Real Estate Transactions.
Did You Know,..
Before you are even to go out looking at homes with a Licensed Realtor-you must have a signed Agency Relationship form? This new form has you the Buyer protected from the start because it demands that the Agent that you are working with explains to you who their loyalty belongs to in a praticualar Real Estate Transaction. This form costs you nothing-EVER! This form protects you from a bad Agent and also protects you for further transactions that may occur with the Agent you work with.
I don't know about you, but if I was going to be spending hundreds & thousands of $$ on a home that I was going to be making payments on for maybe 30 years or longer, I would demand to know if the person who I was counting on to get me the best deal had not already agreed to get the seller the best deal and not me!
Let us remember to always do what is right and protect ourselves from paying too much or not getting our fair and honest representation in a Real Estate Transaction.
ALWAYS get a Agency Relationship form signed and dated from your Agent who is representing you. You must protect yourself as well and be sure the Agent/Realtor who you are working with has their loyalty firmly planted with you and that it is not with the people who are selling the property.
Got it?
Good,..
Get those Agency forms signed and dated by you and your agent before you make any offers on a home and before you begin your home search.
Ken Webb-Realtor
NAR, CAR, OCAR
KW Real Estate
First Team Estates
http://www.kwrealestate.listingbook.com
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