Buyers Who Don't Want A Buyers Agent

by Osman Parvez

If you're thinking about buying real estate, I recommend reading "Buyers Who Don't Want A Buyer's Agent", from Searchlight Crusade. The author is a mortgage broker who writes and thinks as a consumer advocate, explaining "the system" as he likes to call it.

I've been reading his pieces for over a year and am impressed. His latest article nails it on the head for why you should get a Buyer's Agent if you're in the market for a home.

Dan writes,

"Buyer's Agents will make more difference to the sales price - not to mention the quality of the property you end up with - than any reduction in price you might get by agreeing not to use one. They're out there in the market all the time. They know the market you're in, and they know the tricks in ways that you, the buyer, are not going to equal, unless you spend the time it takes to learn everything they know. And unless you're a buyer's agent yourself, you pretty much can't. You've got your own living to make. What are the chances they could do better than you at your profession? The odds are not good; Even if they have the book learning, they don't have your experience."
Remember, finding the house itself is only a small part of the process of buying a home. When a buyer likes a house and wants to put in an offer, we roll up our sleeves and really get to work. What does that mean?

It means we (1) search for comparable sales (2) review the history of ownership for the property, (3) analyze all data for recommended valuation (4) advise on negotiation strategies, (5) structure the offer for maximum benefit and explain key components of the contracts, (6) negotiate on the buyer's behalf, and (7) advise the buyer on relationships with key parties involved in the deal (lenders, title companies, building inspectors, and more).

Don't discount the last item (#7). Given the massive impact of toxic, or so called "suicide" mortgages in Colorado and the high level of deception/fraud in the lending industry (read Dan's blog for more details), finding a lender you can trust and one that offers you a great deal is far from easy. We work with lenders every day and can help buyers get the best deal.

I recently took a continuing education class with real estate legal guru Oliver Frascona. He shared a story of a Latino family that had been duped by their lender into paying obscene fees on a loan with a ridiculous interest rate, and that carried massive prepayment penalties. How did they choose this lender? He was of the same ethnic background, spoke their language, and so they trusted him. They're now in foreclosure.

As buyer's agents, we act as advisors and work to help a buyer get maximum value, minimize risk, and reach their goals. When you pick up the phone and call a listing agent, as Dan rightly points out, you are dealing with the seller's representative. The listing agent is the one who (as Dan writes),

will use high pressure tactics, convince them (the buyer) that this property is the one they want even if there's better stuff out there cheaper, and trick them (the buyer) into signing on the dotted line
Do yourself a favor and consider a buyer's agent who thinks like Dan and works from the perspective of a true advisor, not a salesperson. You'll save time, money, and maybe even from making a big mistake.

If you have comments or questions, or would like to know more about how we work with clients as buyers agents, feel free to call me at ph: 303.746.6896.

p.s. while you're on Dan's site, be sure to check out his archive of articles. Great stuff.

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The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties.   We strongly recommend conducting rigorous due diligence and obtaining professional advice before buying or selling real estate. 

Please Note

This document contains forward-looking statements. You are strongly cautioned that investment results are subject to business, economic and other uncertainties. There are no guarantees associated with any forecast and the opinions stated here are subject to change at any time. Always consult your financial advisor before making an investment decision.