BUYERS AGENTS...WHO NEEDS 'EM?

Buying and selling real estate will always remain a constant. Even in today's market (that is supposedly in a downward spiral) homes are selling. In my St George Utah real estate market, although slower than years prior, it is steady. Now that interest rates have lowered, many prospective home buyers are giving up their warm seat on the proverbial fence...and jumping in to becoming a home buyer. What a great time to be a buyer. In my market, there is a record number of homes on the inventory and sellers are becoming competitive.

So does the average buyer need a "buyers agent" to represent them when purchasing a home? How hard is it to find a home and make an offer, right? You can drive around neighborhoods until you find an area you want to call home. Then you will locate "for sale signs" and begin calling. What you won't know, is that other homes that may have recently expired and could potentially be available to purchase (providing additional inventory). When you enter the home, naturally you will begin making small talk with the owner or Listing Agent. Whether you realize it or not, they will be gathering information to use against you. The seller naturally wants to receive the highest amount they can for their home, and a buyer naturally wants to get the best deal. If you are going in alone, you'll be in the position of interacting directly with the seller or Listing Agent. Read my blog post regarding Limited Agency.

As a buyer, you'll be unlikely to have access to privileged information that can be used to make an offer. You may not realize how long the home has been on the market, or if it had prior listings with other agents. You may not know if they have lowered their price, and if so, how much or how often. You will likely work with the listing agent, and since they are representing the seller, with the intention of netting the seller the greatest amount, will you ever really know what you COULD offer?

Speaking of the listing agent...have they sold anything lately? Another agent will have the tools to discover what the agent has sold, and what types of offers they typically accept. Of course it is up to the seller what to ultimately accept in an offer, however a hungry selling agent can be persuasive to your advantage – chances are you can get the right offer accepted.

Are you familiar with the area? Do you know of the regional issues that may compromise the integrity of the home or neighborhood (such as soil, radon, or mold issues)? Will you be familiar with industry standards of what to ask with your offer? Perhaps you will make an offer that is acceptable, but it's possible the Buyers Agent could have produced comparable home sales which reflect a realistic offer for thousands less, and they will be sure to request a home warranty from a reputable organization.

The job of the Buyers Agent is to locate and negotiate with the client's best interest in mind. The agent will assist you with not only the offer process, ensuring you are paying the best price, but they'll also be assisting with the escrow process. They'll help you find reputable home inspectors and keep you on track with your Due Diligence deadlines.

The Real Estate Purchase Contract is a contractual obligation to purchase the home – are you aware of your rights and the circumstances wherein you can lose your earnest deposit? Will you know the procedure and time lines of what to do, should you uncover a problem during the inspection to avoid losing your deposit? The Buyers Agent will be aware of your rights and will know how to protect you. Best of all, a Buyers Agent is FREE...why wouldn't you allow someone to represent you and advise you, free of charge?? If you are the buyer with the theory in mind that you can save money by NOT using a buyer agent...maybe you can...but at what COST?

I offer Buyer Representation in the St George Utah area. I specialize in residential real estate for St George, Santa Clara, Ivins, SunRiver, Washington, Hurricane, and LaVerkin Utah. If you are interested in enlisting my assistance, Contact Paula Smith.

Date: Sunday, January, 13th 2008 @ 05:10:05 PM
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