Buying A Home? Who Is Representing Your Best Legal And Financial Interests?
Thinking about investing in a home? Who's likely to represent your very best legal and financial interests? In case you are counting on the true estate agent to ensure you do things right, you better stop and reconsider. Why? Because realtors legally represent sellers rather than buyers and several home buyers are either ignorant of the fact or ignore it also it costs them money if they realize it or not.
But think about buyer brokers you ask? Buyer brokers certainly are a scam create by the true estate industry to fully capture commissions on both sides of the equation. Agents get listing contracts and commissions from sellers once the home sells and buyer representative contracts and commissions whenever a buyer buys, according to the language of the customer contract. What's wrong with this particular you ask? Here's what's wrong with it: This is a conflict of interest. There is absolutely no way a realtor or agency can both list homes under contract to represent the very best legal and financial interests of a seller and a buyer simultaneously. Which is particularly true whenever a realty agent and their realty company is both listing and selling exactly the same home.
It is theoretically impossible for a genuine estate company or their agents to represent the "needs" of both buyers and sellers because of the nature of contract law. Whenever a home seller enters right into a listing contract with a realty company, the true estate agent and company includes a legal or "fiduciary" duty to represent owner. If exactly the same company also enters into contracts with buyers to represent their "best interest" this automatically creates an inherit conflict of interest. Why? Since it is virtually impossible to represent the "needs" of both parties under "contract" when contemplating issues like disclosure of financial along with other proprietary and confidential information. The act of negotiations mixed up in transaction requires the disclosure of certain strategic information from the customer to the buyer-rep. Which information could be easily divulged between agents minus the buyer's knowledge. This is also true when contemplating that the agents will receive a "commission check" from this type of transaction. The commissions check (typically paid by owner) and regardless, will create a computerized bias in the agent toward a transaction which will create a commission check with their benefit. Human nature dictates this bias will have a tendency to impact the representation of the transaction in a few capacity leading to optimum commission and only the agent and their company. This can be a conflict of interest.
The only exception to the rule is IF the customer broker property Company will not list virginia homes with sellers and represents buyers exclusively. And also then, you need to use great caution.
Buying a house may be the single largest investment of an eternity for most in fact it is a large business deal made up of people, emotions, contracts and cash. They are all of the ingredients for legal and financial pain unless you know what you do & most people don't.
Here's something agents won't let you know: Before you sign a purchase contract (or any contract), be sure you write, above your signature, "at the mercy of buyer's attorney's approval" then, sign the contract. In so doing, you will get from the deal if it's not in your very best interests.
Remember realtors are LICENSED in property and been trained in property principals, practices, law plus some financing... just how much property training perhaps you have had?.