Is Your Real Estate Agent A Spy
Below is a MRR and PLR article in category Finance -> subcategory Real Estate.
Is Your Real Estate Agent a Spy?
Summary
When you’re house hunting, unless your real estate agent is explicitly a buyer’s agent, they're primarily working for the seller. It’s crucial to be mindful of what you say.Understanding Real Estate Agents’ Roles
Unless specifically hired as a buyer’s agent, a real estate agent primarily serves the seller. Many buyers are aware but don't realize its full impact. The agent has a fiduciary duty to act in the seller's best interests. What does this mean for you?
How Agents Could Act as 'Spies'
Imagine you make an offer on a property and mention you’re willing to increase it by $5,000 if needed. The agent must relay this to the seller. Although the agent may assist you throughout the buying process, their loyalty lies with the seller unless formally contracted by you.
Even if you opt for a buyer's agent, bear in mind they also get paid when a purchase is made, potentially affecting their objectivity.
Some agents operate under “dual-agency” rules, claiming to serve both buyer and seller. However, since they earn only when a sale goes through, their inclination may lean towards the seller. Can a single agent genuinely serve both parties without bias?
What Agents Might Not Tell You
Agents often let buyers make assumptions to close a deal. They might suggest that buyers and sellers always split closing fees or imply commission rates are non-negotiable. They may insist on a large "good faith" deposit when making an offer.
In reality, these norms are flexible. I've seen agents reduce their commission to finalize a sale, and either party might cover the closing fee entirely. Sometimes, buyers make offers with minimal deposits or even none, agreeing to pay once the offer is accepted.
Not every real estate agent is an expert. On my first home purchase, my agent didn’t understand when I proposed a financial arrangement that deviated from conventional deals. Despite years of experience, he was unfamiliar with non-standard financing.
Choosing the Right Agent
When selecting an agent, consider their expertise. Many specialize in specific areas or property types. If you’re looking for a particular type of home, check listings online and find an agent with several similar properties.
Remember, a good agent works hard for your interests, but understanding their primary obligations can save you money and stress during your home-buying journey.
You can find the original non-AI version of this article here: Is Your Real Estate Agent A Spy .
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