Many Albuquerque home buyers don’t understand how real estate agents work, and they make a common mistake by calling on yard sign after yard sign or by thinking that they have to contact the listing agent of every house in order to see it. This is an outdated way of looking for a house from the 1950’s and 1960’s and it’s just not a good idea.
What is a Listing Agent?
The listing is the agent who puts the sign in the yard and the lockbox on the front door of the house. They have a contract with the seller of the property to market and sell the property and to negotiate to get the most money and best terms possible. They’ve already signed a contract in which they promise to represent the sellers best interests.
If you contact them and schedule a showing they are going to do everything possible to sell you that house, just like a car salesperson does when you walk onto the car lot. That’s because if you love the house and decide to buy it, they will get paid twice as much as usual!
You see, here’s how commissions work and how the agents involved in an Albuquerque real estate transaction get paid. The seller pays the entire commission to the listing agent who then splits it with a buyer’s agent – if there is one. How it is split is written into the listing agreement. Frequently it’s split 50/50. However, if there is no buyer’s agent there is no one to split the commission with and so the listing agent keeps it all.
It’s Called Double-Ending a Deal
When that happens it’s called double-ending the deal and it’s cause for great celebration around the water cooler back at the real estate office! That’s because instead of making half the total commission, the listing agent gets paid the entire commission!
They get paid double what they usually do, and you’re left with no one protecting your best interests.
It’s like you were being sued and had to go to court but the person suing you told you they already had a lawyer, so why don’t you use them too?
No way, that’s crazy, right?
Well that’s essentially what you are doing when you call the listing agent on the house.
If you were actually going to court you would want to have your own representation, wouldn’t you? You’d hire your own lawyer and expect them to represent your best interests.
Well you should do the same thing when you buy a house. Get your own representation. Find yourself an Albuquerque buyer’s agent.
What is a Buyer’s Agent?
You see, a good buyer’s agent won’t be like a car salesman trying to sell you one of the cars on their own lot. A good buyer’s agent is like your personal shopping guide who takes you from one car lot to another, trying to help you buy the right car for the right price. Wouldn’t you like to have that kind of help buying a car?
A good buyer’s agent will explain how the home buying process works, help you find the best loan program and will help you locate the best priced properties to buy. A good buyer’s agent will negotiate the best possible sales price for you, not for the seller.
Do you know the best part of hiring a buyer’s broker and having them work for you besides having them represent your best interests in the purchase of your first home? It’s free.
All you have to do is find a good buyer’s broker like me.
by Albuquerque Real Estate agent Rich Cederberg, eXp Realty, (505) 803-5012