To
buy a home, you don't have to have a real estate broker. The first lesson
you should learn is that real estate brokers are not usually working for
you, they are
working for the seller. Most sellers
will hire a broker to handle the marketing of the home and the search for
potential buyers. In return, the broker receives around 6% of the sale
price. This makes them work hard to sell the house for as high a price as
possible.
You will find that an agent will
never let on to this. As you are driving around looking at homes, you will
feel like they are working for you. Don't let this fool you. Many home
buyers ask their agent how much they should pay for a house or how much
they can afford. This isn't there call. They may use the information to
hurt you in negotiations over the price of a home. And don't feel pressure
to buy a home through a broker because he or she is so helpful and nice.
This is a business transaction. Use several brokers so that you view a
wide selection of homes.
You don't need to use a broker at
all if the owner is selling the home himself. You may find that this gives
you a little more negotiating room due to the broker's fee being absent.
It is fairly easy to sell your house without a broker - it just takes
time, knowledge and work.
Brokers aren't bad. A good agent can
really help you find the home of your dreams. Agents know the area better
than anyone. They can recommend schools, local contractors and mortgage
brokers. They help you through the home buying process by handling a lot
of the negotiations. And remember that an agent's fees are always
negotiable. If you and the seller can't agree as to who will pay to
re-carpet the living room, it could come from the broker fee.
Recently, buyer's brokers have become popular. This
is a real estate agent that
works for you. They
assure that you get the best deal available. They are invaluable if you
are moving to an area that you are unfamiliar with or if you must find a
house immediately.
The disadvantage to a buyer's broker
is that they often require that you use them exclusively for your home
buying for a set time period. That's fine if you trust the broker. But if
you want to use another broker or want to look for yourself, you are tied
up. You have to decide how to pay the broker. Working by the hour can
really add up, but paying a percentage of the purchase price gives the
broker the wrong incentive - the higher the selling price, the more the
compensation.
