The point of not using a real estate agent would be to save money, right? Otherwise, why turn down professional assistance in finding a home to the buyers’ liking without their own effort and dealing with negotiations and the many attendant home-buying duties? However, it’s unlikely that both the buyer and the seller will reap the benefits of not paying real estate agent commissions. It works like this: An owner selling on his own will price the house based on the sale prices of other comparable properties in the area. Many of these properties will be sold with the help of an agent; therefore, the seller profits in getting to keep the percentage of the home’s sale price that might otherwise be paid to the real estate agent. Buyers looking to purchase a home sold by owners without an agent may believe they can save money on the home by not having an agent involved and so look solely at FSBO houses. Unfortautnately, home sellers choosing to sell on their own often do not price their home accurately. So you could be overpaying without even knowing it. Or the seller working on his own, prices the property thinking he will net a higher sale prices than his neighbors because he doesn't have to pay a commission. They don't necessarily reduce the asking price to compensate. The buyer offers less than the asking price thinking the seller should negotiate since they don't have to pay a commission. Unless the buyer and seller agree to split the savings, they can’t both save the commission and often a stalemate ensues. Here’s a short list of the advantages that using a real estate agent can bring to your buying experience:
• Education and experience • Agents are buffers • Neighborhood knowledge • Price guidance 6
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