Don’t fool yourself thinking you are going to save if you buy on your own. It is not the case and 99.9% of time never the case. This is the second person who has called me on this issue in the past month and I thought it was important to put out a post on this ASAP.
DO NOT BUY ON YOUR OWN WITHOUT A BUYERS AGENT.
DO NOT SIGN ANY DOCUMENTS WHEN YOU VISIT A PROPERTY, DEVELOPMENT OR OPEN HOUSE.
IF ASKED THAT YOU ARE WORKING WITH A BUYERS AGENT - ALWAYS, ALWAYS SAY YES (even if you have not decided).
These 3 things will protect you and leave all of your options open so you can make a decision later on.
The Scenario: Mr. Buyer (lets call him Jimmy for this scenario), like many of our clients, is a savvy consumer. He used our website along with dozens of other websites, went to numerous open houses and on-site sales & marketing centers for the new luxury condominium developments.
After about a month of searching and touring condo properties, he fell in love with a 2 bedroom unit in a luxury new development here in downtown Boston.
He started the offer process on his own and did not name a buyers agent. Even when asked, “Jimmy are you working with a buyers agent?” he noted that he was not - in hopes to save 2.5% (a typical buyers agent commission).
After a few days of negotiations - they came to a settled price. When that happened, he then asked for an additional 2.5% off because he was not using a buyers agent.
The on-site sales person noted that this was not acceptable and the developer would not agree to this. After a few more days of it going no where - Jimmy called me and explained the scenario.
At this point I tried to hop into the equation, just as a last ditch effort to help Jimmy. I knew the odds were against us, but I tried. The developer who I have done a lot of business with noted that he could not accommodate the request - and I understood.
I told Jimmy this was very common and the developer spends hundreds of thousands of dollars in marketing his project and that he would not agree to those terms. When a developer goes to sell his condominium units he estimates about 50% will be direct sales (like Jimmy) and 50% will be co-broke sales, when a real estate agent or broker like me helps someone find a unit in a new development.
Bottom line is that there is no double-dipping - and that’s only fair!
Bottom Bottom line is that - no matter what - do not give your right up for buyers’ representation.
Not only do we do this everyday and negotiate better than anyone in town - but you receive CASH BACK via our commission refund program.
Jimmy would have got the same deal or better and would have got $11,500 CASH BACK in his pocket from our commission refund! Learn more on commission refunds in Boston.
Take aways:
1. Never waive your right to a buyers agent representation (we work for you and you only)!
2. Every real estate agent and marketing associate ALWAYS works for the seller, even if it does not feel that way, EXCEPT buyers agent who work for you and your private interests.
3. Look at all of your options. For example our company is not just a great buyers brokerage - but we give you cash back - kind of like what Jimmy was looking for!
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