You’d hire a lawyer for a $500 speeding ticket, so why would you buy a $500,000 home without help?
The real estate industry is a hodge-podge collection of players, fees, and exotic terms. The intention is good, and the industry is highly regulated to protect consumers, but real estate is big business, and everyone has their piece of the pie. Ever wonder why there are so many apartments around town? Renting is easy. Buying is hard. But it doesn’t have to be. The good news is that buyer’s agents (the people who represent YOU in the purchase) are almost always paid out of the seller’s funds. Translation… it doesn’t cost you a dime.
Here’s why… There are always two sides to a real estate transaction… sellers and buyers. When a seller hires a real estate agent to sell their home, they sign an agreement that specifically lists how much the seller will pay the agent to sell their house. The agent gets this fee no matter how they sell the house, and in most cases, even if the seller finds the buyer themselves! This is all set in stone before the home ever goes on the market. Now, when a buyer’s agent represents you in the deal, they are paid from a cut of the seller’s agent’s fee (typically a 50/50 split). You, on the other hand, don’t pay a dime. If you didn’t have an agent representing you, the seller’s agent simply gets to keep the full amount. Good for him, but no help for you.
The seller has someone looking after them… shouldn’t you? And the best part of it is… it’s already paid for!