You think you found the house and the work is over.
Not so fast grasshopper. Who is going to assist you in the purchase? The nice agent that you met at the open house said they would help you? Really, do you want “help” or representation? You see, in the State of Maryland, that nice agent can not represent you and the seller. Maryland is one of the states where an agent (note agent, not broker) can only represent one side of the transaction. Please don’t get confused with Dual Agency, that is an entirely different matter.
What’s the big deal you say?
There is a very big difference between writing down terms that you dictate and explaining and guiding you through an offer. An agent representing the seller can not negotiate for you. An agent representing the seller can not legally suggest the terms of your offer. Those are the facts, period.
But that agent can take a cut in their commission you say. Sure they can, as a matter of fact, why not, they are not doing any work for you. They are not liable for any mistake you make. They weren’t going to get the buyer’s side anyway, so it is easy for them to smile and say no problem.
You weren’t going to pay the buyer’s agent commission either! It is offered through the terms set up by the MLS. It is part of the listing agreement, and the agent may offer to cut the price of the house and still keep the total commission. You will never know, they are not required to tell you and they certainly CAN NOT NEGOTIATE FOR YOU.
The State of Maryland has a fund set up to cover the illegal behavior of agents. If they do not represent you, you will have little luck filing a complaint. The stack of paperwork you signed most likely included a document where you agreed to go forward on your own. Everyone in the industry is well aware that by the time you start signing paperwork, you are more inclined to just sign where indicated rather than read every line. The comforting words, “oh this is a standard form” or “everyone signs this”, do not absolve you from responsibility for what the documents indicate. Within but a moment, you sign or initial and you have agreed that the agent sitting with you represents the other party.
Don’t try this alone
There is a reason that buyer’s agents will do searches, show you property and patiently explain the process. There is a reason that these agents assist you in the preparation of an offer and negotiate for you. Beyond the niceties of their passion for help others… that is what they are PAID to do.
I can not fathom why anyone attempting to accomplish one of life’s most expensive ventures would do it on their own. There is not room in the blog world to go over every challenge your agent must face. There is no way I can share the hurdles you must accomplish. I do know that I do this for a living and I read the same internet advice and I read the same books that claim to make it easy and I promise you….there is nothing as valuable as experience.
If you are in the buying mode and you would like to have your own personal representative, we would welcome the opportunity to assist you. We do this for a living and our success depends on your happiness.
ReMax Realty Centre