Andi Grant's Blog - Everyday Real Estate with a Twist

FIRST TIME HOME BUYERS ASK:  Do I really need a Realtor to buy a house?  

The fact that home buyers in this day and age of "scam-bam-thank-you mam" still even ask this question on one of the biggest, most costly investments of their lives, continues to boggle my mind.  So I'm going to make this really simple. 

A home buyer PAYS LARGE AMOUNTS OF MONEY for a home or property whether it be via cash or thru financing with interest.

A home seller (homeowner or bank if it's a short sale or foreclosure) generally COLLECTS LARGE AMOUNTS OF MONEY from a home buyer for a home or property via cash or thru buyer financing. 

WHO POTENTIALLY HAS THE MOST TO LOSE in a home buying transaction when a home buyer chooses not to use a licensed Realtor who has been professionally trained in the handling of real estate transactions for their home purchase?  

    The individual(s) paying out the money (the buyer)

    The individual(s) collecting the money (the seller?) 

Is it the wisest decision for a home buyer not to use a professionally licensed Realtor by considering DIY (Do it Yourself) representation on what will most likely be the biggest financial decision of their life, when they could've easily had a professionally licensed Realtor negotiating and fighting on their behalf in most cases for FREE? NO

Is it the wisest decision for a home buyer not to use a professionally licensed Realtor by deciding to willy-nilly hand over their hard-earned money in a For Sale By Owner transaction to an unlicensed FSBO seller that has limited accountability when selling their house and any problems that may come with it? NO

    WHY SHOULD A HOMEBUYER USE A REALTOR?  IN NEARLY ALL CASES, BUYER REPRESENTATION IS AT NO COST TO BUYER!       

SO WHO PAYS THE AGENT'S COMMISSIONS:  The Listing Agents (representing the seller) and the Buyer's agent (representing the buyers) are paid commissions out of the closing proceeds as a co-op split fee between listing agent brokerage and buyer's agent brokerage.  So why would you trust what's probably your largest and most expensive investment to non-representation or limited representation when it's essentially at no cost to you?  WHY?

SHOULD A HOMEBUYER GO WITHOUT A BUYER'S AGENT? 

According to a May 5, 2011 SmartMoney.com DowJones article regarding the wisdom of home buyers going it alone, "Many experts think this is a bad move worse for example than trying to sell a house without an agent. For one thing, in most cases, a buyer doesn't pay an agent; the buyer's agent splits the commission with the seller's agent, so the services are essentially free to the buyer."    

NOT ONE OF MY PAST HOMEBUYERS HAVE HAD TO PAY ME FOR BUYER REPRESENTATION!  As a first or next time homebuyer, it only makes logical and financial sense to have your own buyer representation.  It's in your best interest and it will give you peace of mind in knowing it's someone that will be solely rooting for you and you alone.  If you are looking for someone like that, then I'll be more than happy to help you in a first or next time homebuying transaction!  Call Andi Grant, Realtor® at 310-508-4354. 

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Other buyer articles that may be of interest to you:

Should Buyers Use the Same Agent as the Seller?

Homebuyer Protocol and Guidelines

What Realtors Do for Buyers

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