3 Things Home Buyers do not know
1. What is the property really worth?
Home buyers have no clue what a property is worth, which is why home buyers should never buy a home alone or a FSBO (For Sale By Owner) without a good buyers agent.
Zillow cannot help either, which is why their value opinion is called a “zestimate” instead of an appraisal.
When home buyers look at a property of interest, they incorrectly assume that the seller expects to discount the property by lets say 10% or more. Nothing should be assumed. If in doubt, ask your buyers agent.
Lets face the facts:
- How well is the property priced?
- Did the seller price it at rock bottom for a speedy sale or multiple offers? If so, the property may be a bargain at full price.
- Did the seller start with what they originally paid and add into it every penny that was spent on maintenance and upgrades?
- Or did the seller just ignore what the listing agents said about value and pulled a price out of thin air, so it is overpriced.
A good buyers agent looks at the value and compares it to what the seller is asking. The asking price can be low, just right, or way too high. Home buyers should not assume that the listed price is always the right price. A smart buyers agent can give you a realistic price.
2. What will the seller take?
Many times listing agents will say something like ” The seller will take…$$$” ….and they are rarely correct.
NO ONE REALLY KNOWS what the seller will take until your write-up an offer and submit it to them. It may even depend upon the sellers situation of the week or their mood of the day. A seller may turn down a really good offer and the following day regret it and then accept a different lessor offer. Sellers situation may change as does their motivation to sell.
Home buyers should not try to figure it out…if interested, just put the offer in writing.
3. Who is working for home buyers?
This is the best kept secret in town. Usually no one is truly representing the home buyer.
Unless you are working with an Exclusive Buyers Agent that only represents home buyers, it is best not to say anything you don’t want the seller to know. Listing agents are obligated to work for the seller and any information they glean from you will be used for the benefit of the seller.
Real Estate agents do not like to tell home buyers that they do not represent them, so they avoid discussing it. Transaction brokers on the other hand, claim to “represent” but offer no loyalty, confidentiality or full disclosure…which still translates into no one on your side.
Smart home buyers do their homework and then choose to hire an Exclusive Buyers Agent who will tell them what the property is worth and how to formulate a offer. They will also guarantee in writing that they will represent only the home buyer 100%. For the ultimate in home buying care, call Buyers Broker of Florida 407-539-1053.