A Real Estate Tip That May Save You Thousands When
Purchasing ANY Type of Phoenix-area Property
The total "standard" real estate commission that a property buyer
pays out, upon the sale of a property here in Arizona, is exactly the same,
typically - whether they secure the services of a top-drawer buyer's
agent to protect their interests or not...
Here in Phoenix AZ, the total standard commission paid out to the
real estate agents involved in a purchase transaction usually averages out at
about 6.0%, depending upon the type of transaction involved (the buyer's agent
and the seller's agent share that commission - unless the
seller's agent gets the whole thing).
The seller's agent gets the entire commission, if an inexperienced
home buyer chooses NOT to secure the services of an experienced buyer's
agent, and decides to go it alone, and trust the judgment of the seller's agent to
negotiate a fair deal for both parties. THIS EXTREMELY COMMON, EXTREMELY
COSTLY MISTAKE happens most frequently, in cases where a husband and wife,
for example, see a property online - or while driving around a neighborhood looking
at homes - and they think they really like the home, and they get really excited, and
they RUSH, and they contact the listing agent to go see the property, without first
securing the services of a qualified, experienced, professional buyer's
agent to look out for their interests.
This is a really, really bad idea
in all respects. Here's why -
(Scroll down to continue)
***There are many, many advantages to securing the services of an
experienced buyer's agent, prior to purchasing your next property.
But there are even more DISADVANTAGES you are likely to encounter,
if you don't get qualified, experienced, personal representation...
Did you know that it is the FIDUCIARY DUTY of the seller's agent
to protect ONLY the interests of the seller... this is indeed true... and in many
cases, the seller's agent does not have to disclose certain "issues" that
pertain to the property they are selling...
The seller's agent only has to reveal material facts about the house.
In fact, if the seller's agent willingly divulges MORE INFORMATION above and
beyond the material facts about the house, to a prospective buyer, they can get
into legal trouble with the seller. Their obligation is ONLY to the seller, and ONLY
to the seller's financial benefit. They have no obligation to you, the home buyer.
So it's really important for prospective home buyers to think hard about that...
How can this affect you, personally, if you mistakenly think you can
"go it alone" and get a great deal by negotiating a Phoenix-area
home purchase by yourself?
Well, first of all, unless you are a licensed, experienced real estate agent
yourself, or a licensed, experienced building contractor by trade,
you are stepping outside of your natural element.
A lot of people think that they can handle all the nuances involved
in purchasinga home, even if they have no practical experience in
the matter. And they are completely mistaken. And their
ignorance can destroy them financially...
A classic example of this, is when a potential home buyer deals
with a new home builder, or a sales representative for a new home
community. There are often many hidden INCENTIVES that those salespeople
hold back from inexperienced new home buyers these days, which the home
buyer could benefit from, if they only KNEW about those incentives.
In many situations, a real estate agent who represents a home
builder will have a hidden pool of money and incentives that they
can draw from, and offer to the new home buyer, as an inducement to
enticing the buyer into purchasing the new home. And that salesperson,
or real estate agent, who represents the home builder, is there to ONLY
protect the builder's bottom-line profit, while simultaneously maximizing their
own commission on the deal - period. In most cases, that's all they are there for...
to make money for the builder, maximize their commissions, and withhold as
many hidden incentives as possible in order to maximize
said commission. Interesting, eh? (Scroll down to continue)
In order to maximize their commission, any financial incentives that they
DON'T give to the home buyer, will often go straight into the real estate agent's
pocket. And this is just one example where an experienced buyer's agent will save
you a ton of money. Not to mention the fact that a lot of home builders will steer the
buyer into using a specific mortgage company to finance the home. And in many
cases, they do that because they OWN the mortgage company. And the terms on
that loan, are not always the best terms available. A really good, knowledgeable
real estate agent will have their own lenders at the ready, who
offer the best financing terms possible.
When buying a resale home, the same sorts of things apply. Ignorance
will kill you, once again, here, as well. Oftentimes, there might be certain issues
at play, regarding the home in question, that remain hidden from view. (If you are
thinking about becoming a PROPERTY FLIPPER, or you want to buy a foreclosure
and renovate it, you should stop right now and save yourself a lot of time,
money and heartache, by clicking this link.)
For example, perhaps the home experienced a fire, or a flood,
or an infestation of termites, or any number of things.
And the homeowners decided to attempt to fix the damage themselves, and not
report it to their insurance company. Many times, when this happens, the
homeowner will NOT fix the house up properly, and only
the cosmetic problems will be fixed.
But you won't know that if you don't secure an experienced buyer's
agent to represent you. You won't know that because you will only be dealing
with the SELLER, and you won't have expert, experienced, buyer's agent
representation, and the seller owes you nothing - and neither
does the agent who represents them.
And if you buy the home, you will be in for a face-to-face encounter
with a living, breathing, money pit...(Scroll down to continue)
David Haase is a REALTOR® with HomeSmart in Phoenix,
Arizona. David's wealth of experience as a REALTOR® has given
him a keen eye for spotting superb real estate values. David Haase
specializes in helping his clients buy and sell homes of any type at
all in the greater Phoenix Arizona area. A longtime resident of the
Valley of the Sun, and a successful, licensed agent for many
years, David Haase can help you find your own personal safe
haven right here in the beautiful Valley of the Sun...
call David Haase direct at 602-793-6548.