Here at Bill Brown Realty we want to provide you with the most current information and resources. We will be featuring current articles and media sources that help explain the current trends.
Today's blog is our first entry and we are excited to start this tradition! We will be adding entries at least once or twice a week so keep checking back. We are also excited to read your comments, so thanks for joining with us as we explore the market and support each other's need to know.
In a recent article in the Wall Street Journal Digital Network the trend of house-hunting without an agent was examined. In her May 5th article, Annamarie Andriotis states, 'Of the buyers who purchased a property through a real estate agent, just 57% had buyer representation, according to a 2010 report by the National Association of Realtors.'
Availability of information online is one of the reason's buyers are choosing to go it alone. Once only available to real estate agents, buyers can now access information such as; median sales prices in a neighborhood, the amount of days a home has been on the market, and how many price cuts it has endured.
But Andriotis reports that experts see the trend as a mistake. 'For one thing, in most cases, a buyer doesn't pay an agent; the buyer's agent splits the commission with the seller's agent, so the services are essentially free to the buyer. Also, a buyer's agent can usually access historical price data for home sales in the area, which means he can recommend a bidding strategy that targets comparable properties that sold for less, rather than the mid-range,' says Andriotis.
She also warns that just working with a seller's agent can be to their disadvantage. Seller's agents are contractually obligated to get the best price for their clients and may even discourage buyer's from getting an agent so that they don't have to split the commission.
Working with a buyer's agent provides many advantages, including suggesting home inspectors and financing companies, looking around desirable neighborhoods for other properties, and watching for red flags once a contract has been entered into.