Buying Real Estate in Franklin TN
Buying real estate in Franklin TN will be the largest purchase you will ever make. You want to make sure you're protected during this transaction. The best way to do that is to hire a Buyer's Agent.
What is a Buyer's Agent?
In the late '90's real estate laws changed to protect buyers from the common-law practice of caveat emptor ("let the buyer beware"). Prior to this change, all real estate agents worked for the seller, even if, they were using an agent other than the listing agent. While sellers benefited from this arrangement, buyers began to question whether their financial interests were being protected. Buyers demanded accurate, factual information, as well as, objective advice. Their demands resulted in a change to agency law and the Buyer's Agent was born.
Can I Call the Listing Agent?
While Buyer Agency was created to protect the fiduciary interests of home buyers, many still contact the Listing Agent when purchasing a home. Primarily, because buyers think they will be able to negotiate a better price for the home if they use the Listing Agent. Actually, that is rarely the case.
The Listing Agent has been hired by the seller to represent the seller's fiduciary interests. The Listing Agent's commission is negotiated at the time the Listing Agreement is signed. It is common practice for the Listing Agent to split that negotiated commission with the Buyer's Agent. However, if a buyer contacts the listing agent directly without his own agent, then the listing agent receives the full commission or both sides of the deal. The only person who benefits financially from this arrangement is the listing agent, not the buyer.
Buyers mistakenly think that commission split will be passed on to them. It is not. Even worse than that, a buyer may actually pay more for a property by using the Listing Agent. Remember, the Listing Agent works for the seller. His responsibility is to get the highest sales price for the home. The listing agent may try to coerce you into to paying more than you should.
Many buyers do not realize that when they sit down to write an offer using the Listing Agent, he will ask them to sign a Confirmation of Agency Status. This document is written notification to the buyer that he is about to enter into a legally binding contract without representation. Is that what you want to do when making the largest financial purchase of your life? Do you really want to be an unrepresented buyer? That's what you will be doing if you use the Listing Agent to purchase a home. You don't see sellers doing that. They have an agent to represent their interests. And they even pay an agent to make sure you will have representation as well. Take advantage of what the seller is offering to you and hire your own agent.
What About Purchasing a For Sale By Owner (FSBO)?
Many for sale by owner (FSBO) sellers are happy to pay a buyer's agent. A Buyer's Agent will provide a Competitive Market Analysis to help you determine the best price to offer. Additionally, there are many disclosure forms that FSBO sellers neglect to provide. A Buyer's Agent knows the importance of having full disclosure. He will make sure that these documents have been completed appropriately to protect you during the transaction. Most importantly, a Buyer's Agent will assist you during the negotiation process as well as outlining contingencies that will protect you.
Should I Use a Buyer's Agent for New Construction?
Absolutely. Builders know and understand that the majority of their home sales come from real estate agents. They have priced their homes with this in mind. Many buyers think that when they go in without a Buyer's Agent that savings will be passed on to them. Nothing could be further from the truth. When a buyer comes in with a real estate agent, the builder/seller recognizes right away that this agent will show the buyers a lot of different housing options. Depending upon the market, this may mean that the builder will be more negotiable.
Remember, the on-site agent, while friendly and knowledgeable, works for the seller. It is her job to get the best sales price for the seller who is this builder in this case. As such, anything you discuss with this agent can be used against you during the negotiation process. It is best to have the help of a Buyer's Agent so you don't diminish your negotiating power. A Buyer's Agent may be able to negotiate a better deal on a new construction home purchase often saving you thousands of dollars.
What Can I Expect From a Buyer's Agent?
Every Buyer's Agent is different and the level of service they provide may be different as well. The Buyer's Agents at Franklin Homes Realty are dedicated to provide you with unsurpassed service to help you buy your home at a fair market price, in the shortest time, with the least amount of inconvenience to you. We promise to:
- Explain real estate agency relationships.
- Analyze your property needs and desires.
- Orient you to current market conditions.
- Provide helpful community data.
- Explain local real estate practices and procedures.
- Provide information on lenders and financing alternatives.
- Search the local Multiple Listing Service (MLS) for suitable properties.
- Coordinate appointments and show all properties of interest, whether they are our listings or not.
- Provide relevant market data as to fair market value of homes.
- Disclose all known adverse conditions of the property.
- Explain the offer process.
- Deliver required Tennessee Property Condition Disclosure form.
- Carefully explain and prepare all Offer to Purchase forms.
- Present all offers to Sellers in a timely manner.
- Strive to obtain the best possible price and terms for you.
- Explain post-contract activities and responsibilities.
- Coordinate all home, termite and radon inspections for you.
- Follow-up on all post-contract activities with lenders, inspectors, appraisers, title agencies and listing agent.
- Maintain communication during the term of our agreement.
- Keep all correspondence between us as confidential.
All of this service is provided to the buyers at no cost. The Buyer's Agent represents the buyers but he is paid by the seller's brokerage company.
While many for sale by owners will gladly pay a Buyer's Agent, you should discuss this with your agent prior to viewing a home. Make sure your agent makes all inquiries to a for sale by owner seller.
Join Us for Coffee!
We like to sit down with you over a cup of coffee at one of the local establishments to discuss your home buying needs, This Buyer Consultation is very informative to you. We view our role as that of educators and consultants, not salesmen. Just click the link below and indicate that you'd like to meet for a Buyer Consult.
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