According to the Wall Street Journal, U.S. Consumer Reports, Money Magazine, State Supreme Courts, and many leading consumer groups…A buyer who relies on the listing or seller’s agent does not receive the same degree of legal protection as that afforded by an agent acting solely on behalf of the buyer.

For argument’s sake, suppose you see a Salt Lake property that is “just perfect” and you don’t have an agent yet. Do you make an offer with the listing agent to save the money of not having a buyer’s agent or to negotiate a better deal with the seller?  (No, I’ll explain in a moment – nothing is saved)

Most Utah real estate deals have two agents involved. The listing agent markets the house and represents the seller. The buyer’s agent represents the buyer. The seller pays the same commission to the listing broker REGARDLESS if there is a buyer’s agent.  If only the seller’s agent is involved (that is, he or she finds the buyer and represents the seller) then such an agent gets 100% of commission instead of 50%.

Listing agents who show you homes don’t represent your interests. They work for the seller, and their object is to sell the house at the highest possible price. If you haven’t figured out the trick by now, I’m telling you that you do not save money when you go through the listing agent.

Before the home is listed for sale, the seller has already contracted a fee with the listing agent.  This fee is not reduced if a buyer decides to not have representation and use the listing agent to make an offer.  Not hiring a buyer’s agent may cost you thousands. If a home was priced at $250,000, you may be overpaying by $25,000 or more on a typical sale if you use the listing agent! You pay nothing for my services as a buyer’s agent. Remember, the seller has already contracted a fee with the listing agent. The listing agent will split part of their fee with me.

When a buyer goes through the listing agent to purchase a home, this is called limited agency.  What is limited agency?

A Limited Agent represents both seller and buyer in the same transaction and works to assist in negotiating a mutually acceptable transaction. A Limited Agent has fiduciary duties to both seller and buyer. However, those duties are “limited” because the agent cannot provide to both parties undivided loyalty, full confidentiality and full disclosure of all information known to the agent.  For this reason, a Limited Agent must remain neutral in the representation of a seller and buyer, and may not disclose to either party information likely to weaken the bargaining position of the other; such as, the highest price the buyer will pay or the lowest price the seller will accept.

If you accept a limited agent, you are accepting you do not want the best price on a property.  In Utah, it is common for buyers’ agents to negotiate price/terms at 5%-10% less than list price.  Do you want to be limited when negotiating?   In simple terms, the sales commission to be paid has already been agreed upon in writing when a home is listed with a broker for sale.  The sales price has yet to be determined.  Why have a limited agent handle your side of the sale when they cannot disclose the lowest price the seller will accept?

Why should a buyer have their own representation?

* No-cost to the buyer.

* To negotiate the best terms and price on your behalf.

* For your protection.

What are your rights as a buyer? What does the seller warranty? What if somebody else makes an offer on the property as well? How do you get your earnest money back if things go wrong? Under what circumstances can you get your earnest money back? What if the home inspection reveals unpleasant surprises? What if your lender can’t get your loan together on time? When can you legally take possession of the property?

Don’t leave money on the table and go through the buying process without representation.  Hire a Zoom Real Estate buyer’s agent today.  “You can’t have partial loyalty. An agent either works for you or works for someone else.”

What should a home buyer do?

Speak to a Zoom Real Estate buyer’s agent BEFORE you go out looking at homes.  Secure your representation first, and you won’t have to concern yourself with accidently being represented by a listing agent.  We have buyer’s agents ready to represent you in all areas of UTAH.   If you are looking to buy real estate in Logan/Cache Valley, Ogden/Davis & Weber county,  Salt Lake county,  Utah county or even St George give us a call.

Contact me today to discuss hiring me to represent you as a buyer’s agent.

Call Kris/ Zoom Real Estate (801) 792-5040