The biggest mistake home buyers make is hiring a listing agent. It may sound odd, but there are more drawbacks of hiring an agent than benefits. If you are the buyer of course. In a dual agency, the agent represents both the seller and the buyer. Here are the top 4 risks when a buyer deals with the listing agent only.
1. Conflict of Interest
After watching the listing, people get in touch with the agent to buy the house. This may benefit the agent to ask double than the normal price. The agent represents the sellers, so he or she will charge a fee for it. Most of the agents won't compromise on it. They will do anything to squeeze more money out of your pockets. If an agent spends the most time with the sellers then they will get all the benefits. This creates a conflict of interest. An agent will offer benefits to only one client, either the seller or the buyer. You can't guarantee to get an unbiased service in a fiduciary relationship.
2. The Power of Money
Don't trust the listing agent even if he or she have done business with you. If you make an offer as a buyer, your offer can get rejected, accepted, or you might receive a counter offer. Sellers often pay more to the listing agent to convince you to buy the house at a higher rate. During a real estate transaction, the seller has to pay the Realtor fees. The seller has more chances of making the deal go in his or her favor. Entering into a dual agency situation leaves the buyer hanging by the tree.
3. The Spin of Information
If you have signed a contract with the seller, then the next step is to hire a home inspector. Your listing agent may recommend a few names for a home inspector. After observing the house, the inspector will give you the list of the damages that needs to get repaired. But, the agent may deny or give you excuses for it. They may spin the information around so the seller won't have to pay anything. The agent will encourage you that it isn't a big deal or lose the house is a mistake. This is a difficult situation, especially for buyers.
4. Lingering Skepticism
As a buyer, you may become doubtful when dealing with your agent. Complex scenarios may create skepticism in your mind, even if the agent is doing his or her best. After trusting the agent, you will receive the Home Owners Association documents. The documents will give you a clear picture. It will tell you about the appraisals or disclosures. If the contract mentions that you can't park your car in the driveway overnight, then this can be a problem. You might cater out-of-town guests on weekends, so the parking dilemma needs to be resolved. These are the things which can put off the whole deal and leaves a bad taste.
Make sure you stay vigilant when it comes to checking home listing in Irvine. Reach out to us to find real estate in Irvine who can help you get with mortgage or rental properties.
Keywords: real estate in Irvine
By: April Lavine
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