The DIY Buyer
Don’t be duped into believing that, as a buyer, you get the service of a realtor for free. Yes, it is true that the commission for the sale of a home comes out of the seller’s proceeds, but we really need to shift this mentality. NOTHING is free.
Realtors will tell you that buyers don’t pay to have representation. Well, I beg to differ. Buyers pay in negotiating power when they themselves are capable. Let’s break this down.
A seller is going to sell their home and needs to figure out how much they are going to net. Let’s say, for example, that they are listing their home for $300,000. 3% goes to their listing agent.
Then they are told that they also need to pay the agent for the buyer. This is how it works and has always worked. So now they have to offer 3% to their buyer’s agent. The seller is told that this agent is bringing a sale and will handle all the tough buyer things, so it’s justified.
So now a buyer MIRACULOUSLY finds their house without an agent. Maybe they were checking Zillow, Trulia or Realtor.com (SO MANY OPTIONS). They come to look at your house. These buyers make an offer without an agent. How much negotiating power do you think they have right off the top? 3%. That’s $9000 without even asking for anything. That’s a lot of money saved.
Now that you understand that YOU, sweet buyer, are actually paying for representation, let's talk about what is being provided to you (or should be provided to you) for that amount.
Finding you a home
Prior to the internet, a realtor was one of the only resources to know what homes were for sale. This service has dramatically changed since the internet has provided such incredible search engines. Most buyers in the market that I talk to are looking SO MUCH HARDER for a home that would fit their needs than an agent ever could or would. You know what you want, you know where to look and you are probably obsessing over those available homes. So, how much is this service worth to you? At RESCO, we are committed to evaluating these search engines and giving you expert advice, feedback and insight so you don't miss out on what’s available.
Negotiating an offer
This is where a great agent can go to work for you. Buying and selling a home requires negotiating. A good agent can help you get a great price on a purchase. With the right tools and resources, you can learn how to negotiate for yourself. You already do this a lot more than you realize. You should hear how often I negotiate with my 10-year-old. NON-STOP. With some understanding of the real estate transaction and the tools to help you know what you can ask for, I believe you can learn to be a powerful negotiator.
The purchase process
This has always been the scariest one for a buyer. A Realtor will know the purchase agreement and have a template for the necessary disclosures. This has been a protected document that most buyers and sellers have come to believe they could not understand on their own. At RESCO we believe that you can and should understand the purchase agreement and disclosures you are signing. We also know where to find them & how you can get access to everything you need. I have provided a template to break down the timeline of a purchase with timelines that are important. There are a couple of inspections and some buyer requirements that are all incredibly manageable if you know what to do & when to do it.
Our goal at RESCO is to give you the tools to represent yourself and save so much money.
We love that you are a DIY buyer and that you want to save money and do things yourself. We are all about it. So follow along, use the tools and free templates and get to it!