I like this blog as it illustrates why it is important to work with a buyer's agent when looking for a home. Also, here in New Jersey there is no cost to the consumer for having a professional agent in your corner and representing your interests.
Via
Harry F. D'Elia, Investor , Mentor, BD, Radio Coach, REO Expert, Networker (HomeSmart International):
I AM SEARCHING FOR A HOME BUT I REFUSE TO WORK WITH A REALTOR
I received a call from one of my many listings in Phoenix, Arizona. Personally, I put my cell phone number on every listing so people are able to call me directly on the weekends to receive the correct information on that particular listing. Hopefully, they will be writing an offer on that house. Anyway, this buyer quickly informs me that she has decided not to work with a Realtor and to find a home on her own. She continues to tell me that she has been looking for a over a year. Meanwhile, I quickly jump on my computer to look for listings in that area. I find out that she has been approved for FHA loan at $131,000. My listing was over that price point. She asked me if my seller was willing to go down in price. I told her to put in an offer and I present it. She later informs that the house might be out of the school district of her choice.
How many other buyers are out there just like this one? They think all they have to do is find the right house and put in an offer. She will be eaten by the sharks if she is not careful when purchasing a home. I was on the phone with her for about thirty minutes. She allowed me to send her a list of nine homes that match her criteria. It seems that I was beginning to earn her trust over the phone. I told her that I live in the area and I know other homes available that are not on the MLS. Perhaps, she would be interested in viewing the homes. She said she would be open to that suggestion. She has many options but needs to find the professional Realtor to find her a home.
I have decided to take on this challenge this week to find her a home. I want to regain her trust in the name behind Realtor. I will keep you informed of my progress this week.
Make the Call, Set the Plan, Do the Deal$!
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Michael- In WI, the consumer may owe a commission to their buyer's agent. I know agency is so different in each state, though. I also 100% agree with your statement that a buyer really needs a buyer's agent to represent their interests. I do find it strange that you used an agent that was talking about speaking with a buyer that had called about his listing to make that point. A buyer needs an agent that is looks out for the buyer's interests and those interests alone. As a listing agent, that would not be possible here in WI.
Jen, thanks for posting. I edited my intro to state in NJ there is no cost to the buyer for a buyer's agent. I think the fact the buyer was spinning the agent's wheels illustrates the point just fine: they were looking in the wrong price range and in the wrong school district. Add the fact they called the listing agent, who doesn't represent them.
Michael- That makes sense:) The Harry's post definitely illustrates the mistakes a buyer can make when going it alone. Thanks for clarifying!
Why Buyers decide NOT to use the services of a Realtor is beyond me. Thinking that they somehow will end up paying more for a home because they are represented is screwy for sure. I hope you are successful in taking her under your wing and finding a great new home for she and her family. Good luck.
Quite frankly, I have run into buyers who weren't ready either. It sounds like this buyer is not ready to buy. Does she assume she gets paid her "commission" by finding her home herself?