3 Common Homebuying Myths

You’ve been searching for homes online, driving by interesting properties in your car, and found one that looks perfect. What do you do next? Contact the agent featured on the yard sign and the online listing? While that may sound like the most logical step, that might not be in your best interest.

Assumption 1: It would be best to contact the listing agent because they would know the most about the property.

Sure, the agent on the yard sign knows the property, but that’s because they’ve been hired by the owners to help sell it. That’s what listing agents do. Their job is to represent the Seller, marketing the property to potential Buyers and help the Seller earn as much as possible. Does that sound like an agent who will be looking out for YOUR best interests? As a Buyer you would be better off avoiding the listing agent (you might unknowingly say something that would hurt your negotiating position) and select a buyer’s agent to arrange a showing, someone who will represent your interests in a transaction.

Assumption 2: I’ll save money on commissions if I work with the seller’s agent.

This is inaccurate. Commissions paid to the Buyer and Seller’s agents are predetermined and written into the listing agreement; in most cases, if the listing agent brings a Buyer to the table (because the Buyer contacted them directly) that brokerage will earn both sides of the commission. That means Buyers don’t necessarily save anything by going directly to the listing agent. More importantly, when a Buyer approaches the listing agent, they’ve potentially lost a vital opportunity to receive loyalty, confidentiality and other fiduciary duties that Buyer’s agents owe their clients.

Assumption 3: All real estate agents are basically the same, so I might as well contact this one.

Again, not true. As in all professions, some real estate agents deliver a higher standard of service than others. You should select a real estate agent who is not only knowledgeable in your area of interest but also familiar with how to best negotiate on behalf of the Buyer under the current market conditions. One way to make sure you’re working with a professional who’s already received special training in representing Buyers is to find an agent who’s earned their Accredited Buyer Realtor (ABR) designation, an official designation awarded by the National Association of REALTORS®. As a Buyers Agent with Renee Mears Realtors, our responsibility is to put the Buyers best interest #1, provide the Buyer with sufficient information to purchase a home and expertly negotiate on the Buyers behalf. Negotiating is tricky business and real estate contracts can be hard to handle. When you get into a difficult situation as a Buyer it can really pay off to have an experienced professional by your side.

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