Misconceptions of buying a home alone
Every so often I see a consumer ask questions on a real estate forum asking how to go about buying a home alone, without a Real Estate Agent.
Funny thing, is that they don’t want to use a real estate agent and yet they are asking questions because they REALLY DON’T KNOW WHAT TO DO!
So why are homebuyers trying to buy a home alone?
Home buyers that are thinking of buying a home alone, mistakenly think the price will be lower…which is absolutely, not true. In fact, more than likely they will end up paying more than they need to and receive less favorable terms then if they had just hired a good buyers agent to represent them.
I know that for a fact, because I do get calls from buyers after they are stuck in some sticky home purchase and are asking me to help them “get out”. They are buying a home alone and now wish they had me on their side. Too late.
The only help I can now give them is a phone number to a good real estate attorney.
Why buying a home alone is not good…
A buyer going directly to a seller or to the sellers agent is wearing a shirt that says “Please take advantage of me”. A buyer buying a home alone, has no one to advise them, so they really have no idea of the true value of the property. Not a clue.
Lets say the sellers price tag is $300,000 and the sellers is going to give you, the buyer, a nice discount and let you buy the property for $270,000. Sure you are happy because you THINK the deal is cheap (and of course the seller told you it was a bargain). But in reality, buying a home alone puts you at a disadvantage:
What if the property is really only worth $250,000? Then what? Do you really think you can just back out? How fast do you really think the seller will refund your deposit? Maybe not at all…because maybe the seller already used your money as a deposit on a new boat.
Is your deposit in an escrow account or is the seller already spending it? Think about it. Is buying a home alone really worth it?
What “extras” do you ask for in the contract? ??? Do you request a repair clause and if so for how much? What contingencies will you use? Inspections? Appraisal? HOA documents? What are your “escape” clauses going to be? (you know, so that you can get out of the contract if you need to…) I bet you have no idea. Buying a home alone is not as simple as you think…
Every transaction, regardless of how nice the seller and buyer are, has conflicts. If you close a deal where everything is peachy, that only means one thing: you either did not ask for enough concessions in the contract, or there is a really great buyer agent representing you. Every sale has issues to negotiate after the contract is signed…particularly after home inspections. Well, ONLY if you wrote it into the contract correctly…but you did not think of that when buying a home alone.
What is your argument going to be when inspections reveal that the roof is at its life expectancy and you have an “as is” contract that you signed? And the sellers now says “too bad, the roof is good enough”? Did you protect yourself in the contract? Of course not…because you did not know how to. Is hiring a buyer agent sounding like a better choice?
WHAT AN EXPERT BUYERS AGENT DOES:
- Makes sure that you are aware of all the properties that may be suitable
- Gives you the property value before you make an offer
- Researches the sold data so that there are no surprises with the appraiser
- Makes sure that you are protected under the contingencies in the contract
- Watches the time frames so that you do not void any of your “escapes”
- Makes sure your deposit is in an escrow account, not the sellers personal account
- Attends the home inspections so they can see the problems first hand
- Re-negotiates the contract after inspections so the buyer gets more concessions
- Makes sure that the seller is living up to the terms that they agreed to
- Raises the red flag on any potential problems
- Checks the title commitment for “exclusions” (things not covered)
- Checks the survey for “encroachments” (boundary discrepancies)
- Negotiates in buyers best interest without drama
- Checks the closing statement for inaccuracies or overcharges
Why choose Buyers Broker of Florida to be your Buyers Agent?
Experience. Buyers are their business, their only business. No games, no double talk and no pretending. They are savvy, honest and always know who’s side they are on. Your side. Call 407-539-1053