“Some people just don’t like working with agents. Other buyers go without them thinking they can negotiate a better deal on their own by working directly through the listing agent. Often they think that by working on their own, they are entitled to a discount on the sales price equal to what the buyer’s agent would have received as commission. But the payment structure doesn’t work that way. In that situation, the seller’s agent just keeps the whole commission.”

The absolute top properties have the most competition to obtain them, and in my 20+ years experience, that means that property is a smart one to buy, for tomorrow it is very likely to still be a hot commodity!

What a buyer needs in order to ‘win’ in a multiple bidding situation is a smart agent, their own advocate, someone who is on the buyers side. Cautious Buyer, your very name choice indicates you probably won’t be a buyer who chooses to go after and win a home in a multiple bidding situation (ie, ‘bidding war’). We don’t call it a war for no reason !

What does a smart agent do for their buyer client, in multiple offers or otherwise?

** advise you on what price NOT to go over. Help you pick a line, draw it in the sand, and don’t cross it. You didn’t ‘win’ if you pay far too much for a property, keep that in mind.
** advise you on how to structure your offer in ways that will be strongly appealing to the seller and the sellers agent. Price, terms, fast closing date, short inspection timeframe, things like that.
** writes a clean, crisp offer. NO LOOSE ENDS, NO SLOPPINESS.
** Personable – if the seller hates your agent because they are too pushy or whatever, your offer isn’t likely to be the winner. Your messenger counts for a lot.
** Consider too, is your agent well known to other agents, and well respected? That also can be the reason your office gets accepted. If the sellers agent can say to their seller “gee, I’ve worked with this agent before, and they do a really great job”, that’s going to help your offer. A lot.

And there are other things, but Cautious Buyer, don’t be too cautious with choosing to work with an agent. Find one who comes highly recommended, allow them to help and guide, and teach you, and educate you. Once you feel educated, you’re not going to feel like your agent is working against you, you’re going to feel like you have a real advocate to learn from, and to lead the way towards owning your first home.

What you qualify for is going to be up to you and your lender – not your agent. And, your agent certainly will have some excellent lender contacts. Talk to those people too.

The right buyers agents priorities are definitely aligned with yours. Once you pick your agent, hopefully, you will have a great experience, and want to work with that agent every time you buy or sell in later years.

That’s one reason to ask friends and relatives for referrals – and if they used the same agent for more than one transaction, I’d sure recommend meeting that agent.

I for one am worry about whether a “buyer’s” agent’s priorities are aligned with mine. Since they are paid when they close the deal, would they really advise me to walk away from a bad deal if they thought they get me to buy? It could mean a lot more work for them. I am sure some agents would and some wouldn’t, but even with references and interviews with multiple agents, how do I know which category mine falls into?

Also, I am OCD enough that I will try to double check everything an agent tells me (or should tell me) about my $4 x annual salary purchase, so I am wondering if I really need a “full service” agent. I will do much of the research myself regardless.

(BTW, it apparently has nothing to do with the new law, but just something they’re doing since the form is being amended for other reasons.)

** Supply of homes is good.
** The great ones still get multiple offers.
** Interest rates are excellent.
** FHA is a great way to buy today.
** Call your lender. There are lots of very favorable loans out there, and you DO NOT always need a 20% down payment.

In a few months will prices be lower? I don’t know.
In a few months will interest rates be higher? I think so.

Do you need to have your own representation, agent or attorney? I say yes. Get your own representation.

Learn the nuiances of a multiple offer situation, most of the time the listing agent will not be thrilled having you ask to have them be a dual agent, nor to have your offer be from an attorney.

Buyers or Sellers, if you want to be competetive? Then learn what you’re doing, and get yourself the very best agent or attorney you can.

No…it left them with the property in a multiple offer situation. This buyer lost the last two properties she wanted. Didn’t get them at all. She has a 3% cushion. Maybe she would have gotton the house for 1% less if she used Redfin, but that was the agent’s 1% and not hers. So it didn’t cost HER 1% more…it cost ME 1% more

“In light of the system of compensation”, the buyer bears some of the burden of real estate commissions through the sales price –whether a buyer’s agent is involved or not. The USDOJ & FTC have expounded in great detail; and, that is why they are such advocates of rebates.

However, if a listing agent agrees to cut out the buyer’s agent and surrender the 3% to the buyer, then one must ponder my aforementioned questions.

One can research the home buying process to a great extent and still miss many beneficial opportunities to save; only experience can extrapolate these opportunities on behalf of the buyer. That is why the prevalent consensus is “caveat emptor” — buyer beware.