The Risk of Buying a Home Without a Buyer’s Agent
By Pierre Mouchette | Real Property Experts LLC
Are you thinking of buying a home? Are you questioning if you need the services of a real estate agent in this endeavor? Trying to buy a home without a real estate agent can carry risks and lead to issues that you may not be aware of. Did you know that there are real estate agents who only focus on what is best for their ‘clients?’ Yes, the benefits of having a Buyer’s Agent are immeasurable.
Buying a home is most likely one of the most important transactions you will ever make. Buying a home without a Buyer’s Agent can be financial suicide if you are not careful!
The Buyer’s Agent
A buyer’s agent represents your best interests. The agent owes you, the buyer, undivided loyalty, confidentiality, reasonable care, obedience to lawful instruction, and accountability. When you purchase a home without a buyer’s agent, you lose all these things.
Buying A “For Sale By Owner” Home Without An Agent
When buying an FSBO without an agent, it’s just you and the seller. Two people making a deal without real estate ‘professionals.’ What could be simpler? You think the homeowners are selling on their own to save money, which means that you will also save on the purchase price. Well, the simplicity of this arrangement is more of an illusion than a reality.
Potential problems of buying a home without an Agent include:
Buying From A Seller’s Agent or “Dual Agent.”
Equally as bad as not using a Buyer’s Agent when purchasing a For Sale By Owner is going directly to a Seller’s Agent to buy a home. Many buyers think they will get some ‘special deal’ or ‘discount’ by going directly to the seller’s agent.
Instead, buyers are dealing directly with someone whose obligation is to the seller. Having a Dual Agent is no better either because they work for both parties and do not exclusively represent either. Some potential problems include:
You DO NOT pay for a Buyer’s Agent to represent you in most circumstances. The Seller almost always pays for real estate commissions. Yes, you may run into a “For Sale By Owner” that will not pay a Buyer’s Agent fee! But, in this instance, you would compensate a Buyer’s Agent when you make your offer considering this.
The best Buyer’s Agents do a lot for their clients. Without a Buyer’s Agent, your odds for problems increase incrementally. Keeping in mind that there are good and bad buyer’s agents, you would be wise to perform a thorough interview of the Buyer’s Agent you are considering hiring.
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