Why don't consumers understand the benefits of a buyer's agent? What can I do to impress upon them the importance.?

Asked by Deborah Garvin, San Diego, CA Thu Aug 4, 2011

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Leah Henders…, , Columbia, SC
Thu Aug 4, 2011
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I wonder about this issue as well. But there is definitely a sub-set of buyers that fall into this category. They mirror the home sellers that are FSBO's. I think that people really like to look for homes on their own. They drive neighborhoods then go contact that agent for each and every home. It's a feeling of being independent. It's a trait deeply intrenched in our psyche "rugged individualism".
These buyer's don't want to feel obligated to anyone. They want to drive their home search without using a buyer's agent. As a mortgage broker these buyer's are hard to convert in my opinion. The things that you can convey is mainly during the search phase they should interview agents who share their proclivities for home search. Also, that using an agent will give them access to homes they cannot find on their own doing "drive by". Also, maybe you can tell them that they can do their own search but at least take advantage of the "free commission" payment. The other commission is money they are leaving on the table and not using. This is money they can hire an agent to negotiate on their behalf. It's money they are due. It's theirs to utilize.

Although I greatly respect this individualistic mindset it really does the buyer a disservice in the long run. Every buyer truly needs a buyer's agent to represent them in the transaction.
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Deborah Garv…, Mortgage Broker Or Lender, San Diego, CA
Fri Aug 5, 2011
@Chris, Thank you for the link...nice post. I do think, however, that most buyers have heard the arguments you present (and many have proffered) and they still are determined to take their own route...only to lament the process down the road.

@Leah, Thank you for the insightful viewpoint. I like your approach of "free commission" left on the table and I think you are on to something. I do not agree with the oft proclaimed motto of many agents of "hire me, you don't pay me...the seller does"; because (frankly) an inept agent who does not know how to negotiate the best deal for the borrower is actually COSTING the consumer XXX number of $$$ over the life of the loan. Your concept of "free commission" brings a 'you are in control, consumer' attitude and really properly conveys that they (the consumer) are really hiring their team (you and I) to represent them in the home buying process. Great job!
1 vote
Christopher…, Agent, Methuen, MA
Thu Aug 4, 2011
Try blogging about it! Here is one of my blogs about the benefits of using a buyer's agent. Let me know what you think about my blog post.
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