Ever been tempted to have the Realtor with the Sign in the Yard come show you the home? This is by far Your Biggest Mistake you could make!!! The bottom line is this: You want to be able to negotiate the best price on the home possible- correct? Then why would you use the agent that is representing the seller WHEN a FREE agent is appointed you, just like in a court of law, to represent YOUR interests and that also means on PRICE!!!
The #1 thing we would have you get about REALTOR® commissions is that the Buyer never pays anything period!!! The Seller pays for it! When all properties are listed on the MLS, there is an arrangement that the seller has to pay the commissions, prefigured in listing it AND it covers a Buyers agent too!!! So, milk your FREE agent when you are buying BECAUSE you pay DOUBLE DUTY when you sell- period!!! So, use it up, your own Buyers Agent. Also, there can be some Definite Disadvantages to using the Listing Agent, your only other alternative on MLS listed homes.
Home buyers may be led to ask, "Who represents whom?". What they often miss, is that because buying a home is often an adversarial process (seller vs. buyer), that the current MLS system, pre-arranges in the listing of each home, commissions to cover not just the listing agent, but also the Buyers agent. It is set up to favor the Buyer receiving FREE representation to be paid for by the Seller AND included in the asking price. In other words, on all Realtor sold homes on the MLS, through every real estate company, the Buyer will never pay commissions, and such commissions to be paid by Seller are already figured into the purchase price, in order for you to be "properly" represented.
Bottom line is this: If you use the listing agent when you buy, then money that would have gone to an agent that would normally represent just you, now goes to the listing agent and that listing agent GETS to "double-end" the commissions on that sale. In such a scenario, the listing agent represents both the Buyer and Seller, becoming what is commonly called a Limited Agent for you.
The question of the day is: Are you being "properly" represented if you are being represented by the listing agent? Most would argue, 'not in any market, and especially when it is a Buyers market' where getting terms that favor the Buyer more, is the rule of the day.
Some states have made it illegal for the listing agent to represent the Buyer. In Utah, it is perfectly legal and happens on the rare occasion. Think about it. It happens so innocently, when the home shopper sees the sign in the yard and calls AND naively gets THAT agent (the one representing the Seller) to show them the home. Now, when wanting to make an offer, and feeling obligated toward that agent, the Buyer sits down to make an offer. Wait! All this state generated paper work warns the Buyer, and is put in front of the Buyer now, that you AGREE AND UNDERSTAND as to LIMITED Agency. First you feel obligated and now pressured. Perhaps if you knew different before hand you would not have gotten into this mess.
Also, some think that on a particular listing they may be looking at, that only an agent from that particular company that the listing is listed at, can answer their questions . Not true! Your agent, who represents you can acquire into any and all information you request. In fact, a good agent will ask questions that you never thought of; very important questions, especially pertaining to St George Short Sales.
While relying on your own powers is often better during the fact finding stage, by 'just calling the sign', it can prove costly, especially during the negotiations phase, if you don't preclude your calls with 'I have my own agent, but I just had some questions'.
Many are opting to be represented by a Buyers Agent to take them through the process, from house hunting to closing. The greatest thing about this is it doesn't cost the buyer anything and often can save them thousands.
If you are convinced, then just shop here (it is the St George MLS with ALL THE LISTINGS ALL THE TIME) till you find what you need and then have Brian line them up for you. Feel free as always because the Brian Habel Team is here to serve you- Get to know the St George Ut Real Estate market. We hope this helps you concerning Realtor commissions. Thanks for letting us inform you!
Representation & Commissions Arrangements- For technical information and a MLS sheet example of those arrangements with clear explanations.
- Basic definition of St George MLS listings
- Sign up for all the Washington County Bank Foreclosures.