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CAT | Buy without an Agent

Think you can save money with a dual agency?There are many ways to buy a home without the assistance of an agent. First and foremost to be affective at this you must have access to the MLS. Second, you must have an easy way to contact the listing agents to homes to verify the homes are still available and have no pending offers. Lastly, you need to verify whether the home is a short sale or a bank owned property. Depending on whether the home in bank owned or a short sale will give you an idea of how much time you could spend waiting on a counter offer.

Most people are under the impression that they can save money by not using an agent. The fact remains, each home contracted on the MLS are listed with Realtors. Sooner or later, you’ll have to deal with an agent when writing an offer. The listing agent representing the seller would usually be paid 3% of the sales price if you were being represented by an agent, but if you’re not they’re then entitled to 6%. The listing agent should help you write the contract, but what you need to understand is Dual Agency. Anytime you are not being represented by a Realtor in a transaction, you’re in dual agency. Dual Agency means you’re signing a waiver acknowledging the listing agent has a fiduciary duty to the seller and to you. It’s very difficult to represent two people in the same transaction.
On one side, the buyer wants the best deal possible and on the other side, the seller wants the highest price. I’ve seen many occurrences where the listing agent discloses to the seller, ” these buyers are motivated. They want your home so bad. I just know they can pay more.” The best way to protect yourself in a transaction is to ensure you have proper representation. Another good metaphor is showing up to court only to have the plaintiff’s attorney represent you. You wouldn’t do that in court, so why would you do this a real estate transaction?

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