Are You Better Off Buying Through A Realtor Or On Your Own?
One of the fundamental misunderstandings that many buyers have is that it is somehow beneficial to circumvent a Realtor's services in a real estate transaction. Perhaps they may believe that they will be able to personally negotiate a more advantageous deal directly with the seller's agent or the seller themselves; or they may think that cutting out the Realtor will save them money in commissions. These fallacies can actually cost the buyer a significant amount of money as the price they will likely end up paying will be much higher than a Realtor could have negotiated for them, and the contingencies that the buyer will fail to place into the offer can be deal-killers!
Negotiating directly with the seller's agent or with the current owner of the property without the professional experience earned through conducting hundreds or even thousands of successful real estate transactions is not advantageous at all. A typical real estate transaction today involves a myriad of different details and the participation of a considerable number of specialized professionals, not to mention a complex and convoluted set of laws and by-laws which have to be scrupulously adhered to. Entering into this legal and logistical minefield is not for the uninitiated as just one error borne of inexperience can cost many thousands of dollars.
The alleged saving of commission is also illusory, as the seller is responsible for the payment of the commission to not only his agent but to the buyers' as well. That is why it is of foremost importance to ensure that the Realtor who is representing the buyer's sole interests is a seasoned professional with years of experience. The real estate business is unique in that the commission structure for a brand new Realtor with the ink still wet on their licence is the same as for the Realtor with decades of experience who can act as a wise and insightful guide through the labyrinthine of a real estate transaction. That is why it is to the buyer's best interests to ensure that the Realtor they choose to represent them is a proficient career agent with a sterling reputation in their community. Choose the best, it costs no more!
It is absolutely imperative that the buyer has a clear comprehension of the structure of the real estate transaction and the precise positions and loyalties of the Realtor(s) involved. In many instances it is a profound error to select the same Realtor to represent both buyer and seller. The buyer should have their own professional Realtor whose only goal is to negotiate and implement the best possible deal for the buyer. There is a great deal of information exchanged between buyer and Realtor and it may not be advantageous to the purchaser's position in the negotiations to have every word be repeated into the seller's ear. If a buyer stumbles into a situation where they are not absolutely clear on whether or not their Realtor is acting as a sub agent and thus also representing the seller's interests, the buyer should always make sure to ask. A Realtor is bound by a stringent Code of Ethics to fully explain their position and loyalties.