Buyers are not market experts
Most buyers who
aren’t working with an agent present an offer that is either far too low
or just a little bit high, expecting the seller to counter.
Unfortunately for these buyers, current market conditions combined with
new digital marketing channels often mean that many sellers are
receiving multiple purchase offers. If you miss the exact right value
coming in, then a better-informed buyer will get your home. Unguided,
inexperienced buyers often lose their dream home to an individual
working with an experienced buyer’s agent
In the end, the buyer winds up having to settle for a different home or ends up paying more than he or she planned.
Listing agents want to please the seller
Unless
a homebuyer works in the real estate field daily, it is unlikely that
they possess enough knowledge about local housing market trends and home
values to make a sound offer.
Buyers should understand those
listing agents have their sellers’ best interests in mind, meaning they
work to maximize profits for the seller and ensure the seller receives
the best terms possible in the transaction. Negotiables such as closing
costs, home warranty fees or repair costs can work in the seller’s or
buyer’s favor. And you already know for whose the listing agents are
working.
To help sellers further, listing agents may imply to
potential buyers that there is high demand for a home to drive up the
offer price. Without a knowledgeable real estate agent, homebuyers
usually have no way of knowing precise market demand for a particular
house. So, they often end up overpaying due to fear of loss.
This
overpayment undermines the buyer’s intent in forgoing a buyer’s agent
in the first place. Since sellers won’t have to pay the buyer agent’s
commission fees, homebuyers working without a real estate agent are
hoping to have the seller lower their overall asking price. While some
sellers might agree to this, the homebuyers may still overpay if the
initial asking price is not representative of actual market value.
Modern Market Realtors advice to you is to work with an agent
who will use their knowledge of supply and demand in your specific
niche of the housing market to help you understand the real market value
of the home you wish to buy.
Have a great day Shannon and Jim
FargoHomeSearch.com
