Seller's Agent vs. Buyer's Agent
The other day, I was thinking about some clients that my partner, Scott, and I worked with well over 7 years ago. Our clients said they didn't feel comfortable paying over $1,000 per month and, unfortunately during that time, there wasn't a big selection of homes that they liked in their preferred price range. Imagine our surprise, several weeks later, when they contacted us, rather excitedly, because they'd gone under contract on a home with the listing or seller's agent. They had driven by a home over the weekend that was having an Open House, decided to walk through it, and fell in love with it. The home was priced over $20,000 more than where they told us to do their searches, which was going to take their mortgage payment to $1,200 per month or more. Our former clients, all of a sudden, were more than prepared to handle this higher mortgage payment. So, what happened? The seller's agent did what he was supposed to do - he sold our buyers on his listing.
With the real estate climate being the way it is, I've often wondered how well our former clients were able to handle extending themselves $200 beyond what they said they felt comfortable paying per month. Most buyers decide to purchase a home for emotional reasons - they love the layout of the house, the price, the neighborhood, the amenities, and/or the location. Then, they apply logic to help backup their emotional response. A buyer's agent represents the buyer's best interest, even when a buyer is ready to abandon their own best interest. A buyer's agent is there to remind a buyer of what they said they feel comfortable paying per month, before commiting them to something that can eventually lead to foreclosure. A seller's agent represents the seller's best interest and has been hired to get the home sold as quickly as possible, for the highest amount of money. A buyer's agent researches homes currently for sale, under contract, and sold in the buyer's preferred neighborhood, so the buyer can have the necessary tools at their disposal before deciding on their offering price and terms. A buyer's agent includes contingencies in a contract, such as a home inspection or appraisal, so their client isn't tied down to a home that looked good initially, but isn't as economically feasible later. A seller's agent has ties to the seller and includes or excludes contingencies that best serve their client. In most instances, the seller is funding the cost of their agent and a buyer's agent, so, if you're a buyer, it's to your advantage to have a knowledgeable and experienced agent to represent your needs. It's easy to get swept away when you find your dream home, but that dream state evaporates rather quickly when pitfalls begin to surface and you have no representation.
With the real estate climate being the way it is, I've often wondered how well our former clients were able to handle extending themselves $200 beyond what they said they felt comfortable paying per month. Most buyers decide to purchase a home for emotional reasons - they love the layout of the house, the price, the neighborhood, the amenities, and/or the location. Then, they apply logic to help backup their emotional response. A buyer's agent represents the buyer's best interest, even when a buyer is ready to abandon their own best interest. A buyer's agent is there to remind a buyer of what they said they feel comfortable paying per month, before commiting them to something that can eventually lead to foreclosure. A seller's agent represents the seller's best interest and has been hired to get the home sold as quickly as possible, for the highest amount of money. A buyer's agent researches homes currently for sale, under contract, and sold in the buyer's preferred neighborhood, so the buyer can have the necessary tools at their disposal before deciding on their offering price and terms. A buyer's agent includes contingencies in a contract, such as a home inspection or appraisal, so their client isn't tied down to a home that looked good initially, but isn't as economically feasible later. A seller's agent has ties to the seller and includes or excludes contingencies that best serve their client. In most instances, the seller is funding the cost of their agent and a buyer's agent, so, if you're a buyer, it's to your advantage to have a knowledgeable and experienced agent to represent your needs. It's easy to get swept away when you find your dream home, but that dream state evaporates rather quickly when pitfalls begin to surface and you have no representation.
Posted by Lifelong Realty at 4/6/2010 2:19 PM 
Categories: Choosing an Agent
Tags: buyer agent seller agent
Categories: Choosing an Agent
Tags: buyer agent seller agent
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