Los Angeles Buyers, Get Your OWN Representation!
September 29th, 2008 Categories: For Buyers
I just got off the phone with a very nice gentleman who thought he and his wife would buy a house without an agent and they entered escrow a couple of days ago. You know, he’s an attorney, they know the neighborhood, why would they need an agent?Well, let me first off explain to you that what is going to follow is just not my opinion because I’m a real estate agent.  There’s a few important reasons why you’d want to have your own agent.  Here it goes…First of all, they weren’t even planning on getting a physical inspection. Do you realize what a costly mistake this could be? This is the FIRST inspection you get. The second you get acceptance on an offer, book your physical inspection.  And there are other inspections you should get after that.  This is a time that you would talk with your agent about what inspections they’d recommend. Each property will be different.Second, if you don’t have a good agent negotiating on your behalf during the initial negotiations and then DURING the escrow, you are really shooting yourself in the foot. You may think that you’ve just saved a bunch of $$$ (I’m not sure how exactly) but how do you know that you didn’t just give it right back to the seller because you didn’t get the price you could have landed IF you had an agent? Do you realize that you should renegotiate during the inspections if something unexpected comes up? Third, how did you even figure out the price to settle on? Did you look at home sales on AND off the market? In Los Angeles, many many homes sell off the market. I hope you’re factoring those into your sales price. Did you look at how the market has changed each year and work that into your sales price? How about your price per square foot compare to where the sales trend line is headed? Did you go through the Property Profile to make sure there aren’t any liens, loan or title issues? It really doesn’t matter what the seller is asking.  Please make sure you’re not overpaying, especially in this market.Fourth, if you don’t have an agent, you may be told by the listing agent that you don’t need an agent. BEWARE!  They know full well that you would be in a much better situation if you had your own agent looking out for your interests alone.Last, how about all the fees and closing costs that you’re going to be paying- agent or not? If you had a good agent, they could also negotiate those down for you and get you some money back in your pocket. How about all the repair costs that are going to surface during your inspections? Again, your agent can negotiate those costs down for you.Real estate is a different ball game from any other business. Anyone can write an offer. Whether or not it’s a good offer that is truly protecting you is another story.  If you don’t have someone watching your back, you’re flying blind on probably the most important purchase you’re ever going to make.  To review, if you used your own agent, you’d have someone guiding you through the entire process, looking out for your interests.  You’re also most likely going to get a better deal because that agent will get you a better price.  You’re also not paying for it, commission has been decided long ago by the seller and the seller’s agent. Why WOULDN’T you use your own agent?Â
Noelle,
Thanks for hitting the proverbial nail on the head. Real estate has more twists and turns than a mountain creek and there is something new to learn at every point along the way. Keep saying your peace - it matters.
Michael
GWSleptHere.com