What is the best way to buy a house/comdo? Dealing with a real estate agent or just calling the phone number on the for-sale sign? what's the difference? What's the difference cost-wise also?
There is no difference in cost to the seller. If you hire a buyer's agent that agent is paid out of the commission the seller has likely already obligated themselves to pay. If you use the seller's agent that agent will receive all the commission themselves. The seller's agent is obligated to get the best deal for the seller they can possibly and legally do. A buyer's agent is obligated to look out for your best interest. A buyer's agent may be able to negotiate a better price or better terms for you, and will make sure you get the home inspected and other things that will protect you.
A seller's agent (listing agent) always works for the seller first, and think that is true even in a dual agency where the agent is supposed to fairly represent both sides. As in: you called off the sign, you use that agent to represent you. The seller is paying the commission and as a listing agent myself, it's very challenging to NOT feel the seller is my client first. So I typically turn down dual agency deals to avoid any potential conflict of interest. And to protect myself from a potentially confused buyer. The greatest misconception I see in the real estate world are buyers who think they are going to pay a higher purchase price because the seller has to charge a higher price to afford the buyer's agent. The commission is negotiated ahead of time between seller and listing agent. It's a certain percentage of the sales price. If the listing agent represents both sides, they'll get the whole commission. And maybe, just maybe, you haven't gotten compelling representation from someone who is only looking out for you. Because the listing agent can't only look out for you. Listing agents work for the seller. Remember that. A seller of a property should actually welcome a buyer's agent, since that deal is more likely to finish out well, with the buyer in particular pleased because they had their own neutral advisor. Bottom line, there is zero cost difference to you. If a seller wants a higher price, it's not because he or she is upset you have your own agent. If you're comfortable with someone who earns more the higher the sales price of the house (commission is a percentage of the sales price), then use the listing agent. Harsh? Yes it is. If you prefer an agent who will tell you point blank what the house is really worth, and represent you all the way down the line to handing your new keys to you, then find someone you like and trust to find you a place. He or she can call on that sign for you. Good luck!
