Two Pieces Of Home Buying Advice You Should Ignore
When you announce you want to buy a home, everyone in your social circle will suddenly become real estate experts who have mounds of advice for you on the process. While it may come from a good place, the advice you receive may not always be the best and may even hurt your chances of getting a good home at a great price. Here are two pieces of home buying advice you should ignore.
Have the Listing Agent Represent You
Most people who proffer this advice want to help you save time and money. Their reasoning is you won't have to pay the realtor's commission (since it's usually covered by the seller), and there's only one person you have to go through to negotiate with the seller. Additionally, some people think that using the listing agent will provide some type of leverage when it comes to getting a good deal on the price.
However, no matter how great the listing agent is, it's hardly ever a good idea to have that person represent you in the transaction. You wouldn't have a lawyer represent both you and the plaintiff in a personal injury case. It's the same concept. The listing agent's duty, first and foremost, is to the seller. If you want to make sure you're not buying a lemon and really get a good price, it's best to hire your own real estate agent whose sole duty is to protect your interests.
Start with a Low-Ball Bid
Another common piece of bad advice new buyers hear is to submit a low-ball offer. The idea is to give yourself more room to negotiate a good price on the home. There is also the unspoken idea that maybe you'll get lucky and the seller will be desperate or ignorant enough to accept it without quibbling over the number.
While these may seem like valid reasons, submitting a low-ball offer will most likely backfire for a couple of reasons. First, sellers represented by real estate agents will already know what the home is likely to sell for. So submitting a low-ball offer may make you look unreasonable and someone they probably don't want to deal with. Second, the seller won't even bother looking at your bid if there other people offering more upfront.
It's best to work with a real estate agent to come up with a reasonable offer to give yourself a fighting chance to get the home you want.
For help finding the right house for you or assistance with negotiating with sellers, contact a local real estate agent. He or she will help you evaluate the homes for sale to get the best one for your needs.