Lots of things have changed in real estate over the past few years. It wouldn't take me long to write a long list but I want to tell you about one of the silliest trends we've noticed.
Years ago, if you wanted to buy a property, you called on your local real estate agent. For an increasing number of people this is no longer the way they buy property.
Today, some people employ a buyers agent.
What's a buyers agent? This is a real estate agent who acts for the buyer. In theory they locate the best property for their buyer client, negotiate a really great price and pass on the benefit to their client, the buyer, who then pays them a fee, often thousands of dollars.
I can understand how this trend has come about. After all, real estate agents are trained negotiators. Good agents are excellent negotiators. But we act for the property seller, not the buyer. And because people only buy property once in a while and are not as skilled as real estate agents with the negotiation of property sales many buyers will feel they need to be protected by someone with equal skills.
Sounds like a great theory, doesn't it?
But the buyer's agents we have come into contact with have been useless.
I know that's a bit tough, but honestly, they are terrible negotiators. At least the ones we have met. And in almost 100% of cases they pay too much. For an agent like me who acts for the property seller they are a dream come true. They avoid negotiating by making a great offer to start with which they know our client, the property seller will accept, often with a big grin and open arms.
Great for us. Not great for the buyer they represent who now has to pay thousands for the privilege of paying too much. Amazing!
If you are thinking of buying a property save your money and go direct to your local real estate agent. I could almost guarantee you'll end up much better financially.