Welcome back, WiseMove subscribers!
I hope everyone enjoyed that nice cool weather we had at the end of October. I understand Voodoo did not disappoint, and we all know Halloween is an absolute anomaly with parents just giving candy away. All in all, October just rocks. I trust that everyone had a great October, but November is here.
Let’s talk some real estate.
This month’s newsletter is dedicated to BUYERS.
We here at WiseMove are about to debunk the biggest MYTH in the real estate industry: that the seller pays the buyer’s agent.
On the surface, that may have some truth to it; but let’s put on our boots and gloves and dig through the bullshit.
First thing, I guarantee you that you could get a lower price when buying a house if “the seller doesn’t have to pay a buyer’s agent.”
Maybe you want your own agent/advisor to help you through the negotiations, banking, and title work. Maybe you want an agent/advisor who is working for your best interest when buying a house. THESE ARE VALID REQUESTS WHEN PURCHASING WHAT IS PROBABLY YOUR LARGEST ASSET!
So when you hire the agent/advisor to assist you in the purchase of probably your largest asset, you may ask him or her, “What do you charge to represent me in the purchase of a new house?” Their answer is usually, “You don’t pay me; the seller pays me when you purchase the house.”
Let’s think about this answer, “The seller pays me.”
When everyone is at the real estate closing, who brings the MONEY to the table? Let me help ya out…it is the BUYER who brings the bag of LOOT to the table!
That money (that is supplied by the buyers) gets chopped up and spread to the title company, the mortgage company, the insurance company, the agents, and then the seller.
When ya look at it, the buyer is the one who pays everyone.
Should the one paying everyone be able to decide what everyone gets paid?
The buyers can get quotes on everything, except his or her own agent; because the industry has fooled the buyer into thinking that he or she doesn’t pay his or her agent. This is the biggest MYTH in the industry.
The buyer does pay for his agent; he or she amortizes that agent’s fee over the lifetime of the mortgage. That is something no one will tell you. They’d rather you think that the agent works for free, until you see how much they get, when you read the closing disclosure.
The moral of this story, ladies and gentlemen, is nothing in life is free. The sooner you realize that fact, the better off you’ll be.