Although there are fewer realtors in the business these days due to current real estate market down turn, there are still plenty of Beverly Hills real estate agents in the industry. In case you are contemplating buying a house, there are many options with regards to Realtor’s representation — from your aunt or uncle to your friend that’s in the business to the friendly Beverly Hills realtor you’ve seen on signs throughout your area.
Home buyers normally have a lot of concerns and mostly want to get a head in the game and do something that would benefit them. And of course real estate agents and Realtor’s community has always been trying to educate, influence, guide, argue (or whatever you may think) the home buyers the necessity of having a realtor on your side that has your best interest in mind. Here are some of the concerns:
The most likely initial concern is the commission/money component. (Regardless of the facts that home buyers usually are not responsible for their Realtor’s commission). But here are some of the things that I personally hear from people calling me:
I want to work with the listing agent that has the property so I can get a better deal since he/she is making more money. Or I want to work with the listing agent so I can get him/her to reduce their fees and credit me the buyer agent share for the price.
The dual agency or representing both parties in a transaction is something that most reputable and honest brokerage firms are handling very delicately due to potential conflict of interest issues and there are few real estate agents that can handle it in a professional and balanced manner. I’ve read both buyers and realtors arguments about this and to be honest with you, it really depends on the person. It also depends on the realtor and how much he or she values her work, time and principle. And once again, there is no right or wrong with individuals’ values as everyone can do what they want to do. But here are some things to consider.
I think it depends on the specific market but I was told that most listing agents, when signing up a listing, they charge a reduced fee if the agent represents both sides. I doubt that’s the case for most Beverly Hills homes but with this incentive already negotiated between the sellers and listing agents, there is no value or credit given to the buyer. The seller is expecting to pay less in fees so buyer gets short end of the stick. Of course I doubt that good and reputable Beverly Hills Realtor or Pros would agree to this agreement. Some don’t even represent buyers since they really want to serve the seller.
Now as far as getting a better deal, based upon my personal experience, most Beverly Hills real estate owners are generally more sophisticated and business minded that average sellers through Los Angeles. They learn and know about the comparables and recently sold homes and they know what to expect to net in selling their properties. Some sellers are also firm on the price they want to get regardless of the comparable properties and they’d rather not sell than sell it below what they want. So I think it’s really rare should be expecteda listing agent to get you a much better deal or below market price on a Beverly Hills homes for sale because the sellers are ultimately the ones that choose to accept or reject an offer.
The other thing that buyers should realize is that you as buyer have no contract or obligation to get a home from the listing agent. There is absolutely no assurance that you will do business with the listing agent and you won’t pay the agent for trying to get you a deal. However, the seller does have a contract with the listing agent which makes the seller more of “a sure thing” for listing agent to earn income. So do you think you can expect that agent to push the seller to get you the below market price or terms and conditions you want without damaging his or her relationship with the sellers? Do you think that the listing agent can be your loyal advocate? The bottom line is that there is a contract with the listing agent and sellers and I’d say good number of the agents would stick to their sellers.
Besides the price negotiations, most buyers do not realize that there are a lot of negotiations and issues that need to be handled during escrow. For example, once you do your inspections and there are complications with the house that should be addressed by sellers. You need to negotiate with the seller to address the issues and believe me when you get your inspection reports; you see all the problems that you didn’t know could have existed. So do you think you may expect the listing agent to fight for you and get the seller to credit you for repairs or reduce the price for you? That does not mean that it won’t happen but this is something you should consider because most buyers don’t know about how are you affected after initial contract negotiations. But remember, if the escrow falls through which happens more these days, there is no guarantee that you will do business with the listing agent. However, he or she can put the property back on market and sell it and no real estate pro will jeopardize his/her agreement with seller.
Finally, at the end of the day, you can choose whoever you want to handle your case. Of course Realtors might also choose to work with you, reduce their fees, rebate you part of their commissions or listing agents could be greedy and unprofessional and push the seller to get you a better deal because he/she makes more money that way. The purpose of this article is not to judge anyone and there is no right or wrong.
