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Lenn for all your stated reasons, I will never understand why a Buyer will not agree to representation. I think some Buyers are coming around, but in the commercial world I find a lot of Buyers don't accept Buyer representation. They want to work with several Brokers and think dealing directly with the Sellers agent is more beneficial. When I talk about Buyer representation, the immediate response is, "I don't have to pay you, do I." It's all about education, but a slow process.

Take some time off and enjoy your day. Merry Christmas, and have a happy and prosperous New Year.

Lenn, my parents are coming up from Annandale today and at some point I believe they will sell. they are in their 80s and happy, but I 'm glad to know about you.

Great list Lenn.  NC is also a "buyer beware" state.  Representation by a good buyers agent like your team is essential!

You're absolutely right and a great post to educate buyers (those open minded enough).  Buyers take the same risks in our state and at times it seems impossible to get them to understand the risks.  Sometimes (I mean many times) I think the only way they will learn is the hard way.  Happy Holidays

Merry Christmas to you Lenn.

Lenn - representation buy a buyer's agent is beneficial almost anywhere, but especially in a caveat emptor state. Merry Christmas

Lenn, so true and I can not even speak on this Blessed Morning of Buyers over paying, not dealing with leaky basements on disclosure's without a agent. I'll not go there today, but sufice it to say your list is so true.

It's interesting that Virginia would be a caveat emptor state. I am licensed in Florida and California and both states require the seller to make full disclosure of property condition to the full extent of their knowledge.

Hello and Merry Christmas. It seems that many FSBOS in my area are providing Property Condition Disclosures and as much if not more detail than many listing agents provide. Possibly many buyers feel that they are competent enough and will pay less for the property as commission is not being added in. We even had a local FSBO that disclosed on his flyer what it would cost with an agent, and without.

Lenn,

Good advice, but to heavy for today.

I just stoped to say Merry Christmas!

Bill & Brenda

Boy, I can't believe that the sellers don't have to disclose even latent defects or material facts that they know about concerning their properties like they do in Maryland.  I think something needs to be done about that with the laws in Virginia to protect the buyers more.

Great Post Lenn- love the list. It's so true. Have a wonderful Holiday!

Merry Christmas Lenn!

These tips are important even in a state which is NOT cavaet emptor --  I always recommend that clients seeks representation to protect their interests. 

Certain buyers believe that they'll get a "deal" by cutting out the "middle man" and the mythical agent commission "markup" by fending for themself with a FSBO.  They have no idea that a home that is not listed has no agent to ensure compliance (here in New York there are still instances when submerged oil tanks, illegal sheds, bathrooms and the like pass title because there was no agent to catch it). Everyone thinks that their attorney or the title company will catch those things, but unless they make a personal inspection they risk flying under the radar, saddling the new owner with environmental and code violations that cost. 

Often, the hypothetical money saved is lost with delayed closings, fines, violations, permit fees, and headaches.  People who buy a home once, twice or even 5 times in their life still have no idea what to look for, what questions to ask, or what red flags to watch out for.

And, it's not just Virginia - in Maryland buyers need an agent especially for FSBO properties.  I have a seller who bought her house FSBO without an agent.  So, she didn't have a home inspection.  When she moved in she found out the roof wasn't attached to the house and all the drains in the house were blocked.  The seller also didn't use the right materials to renovate the bathroom so the first time she had a shower the beautiful ceramic tile floor started to crack.  And, the list goes on.  Caveat Emptor for sure.

At convention this year they were also saying that only around 10% of the foreclosures were buyers who used an agent.  Looks like we watch after buyers in more when one way.  Merry Christmas.

Lenn,

Nice summary of key points!!! Even in a 'non caveat emptor' state these points ring clear...conflicts of interest should be avoided at all costs...wearing multiple hats and attempting to advocate for more than one party in a real estate transaction is tantamount to treason in time of war!!! :) Thanks and Merry Christmas to you and yours...Fran!

What is so funny is that for sale by owners will use, in their mind, the savings from not having an agent as an immediate negotiation tool and then deal thereafter.  If they only knew that all buyer's agents know this and come to the table ready to deal off the other side of the commission.  The other oddity is that many are using Zillo as their appraisal.  Just saw one go off the market last week....and it was 20% below the market.  I assume the seller thinks he is the greatest realtor in the world.

In the long run ...when the buyer is not represented by their own agent...they are getting 'ripped off'.  They don't have representation, they are not given proper advice (agent is thinking first and foremost in the interest of the seller) and bottom line...are NOT getting a better deal.

Happy Holidays dear friend...:)

I like buyer beware states. It really does emphasize the need for representation when you get enough buyers who get burned by their lack of information. Usually there is just one way for buyers to learn and that is the hard way. Thanks for the info and Merry Christmas!

I like to call the FSBO an unrepresented seller and the buyer a fool who doesn't use an agent.

Lenn - Merry Christmas! Excellent points to convince the buyers in Ohio, too to use the services of their own representative. I've recently represented the buyer in FSBo transaction. Sellers did not agree to pay for my services, so my buyer paid to my company directly. She never regretted about it. First, we negotiated much better price than she could even dream about. Second, we did a very thorough inspections and sellers made pretty costly repairs. Third, she just felt much more secured and comfortable working with her own agent.

Excellent tips for all states with or without cavaet emptor --  I always recommend that clients seeks representation to protect their interests.  A very good post for localism.

Hi Lenn:

I read Scott's post, your re-blog of it and now this post.  It's just so sad, if only these buyers would listen to their trusted agents, rather than think that they're getting a bargain at a fsbo...

Penny wise / Pound foolish!!!

 

Michael.  I work with a sufficient number of buyers to know that 95% of home buyers do not understand how we work or what buyer's agent even means.

Janice.  Folks in Annandale often keep their homes for many years.  It's a very convenient area and the older established neighborhoods are very popular.

Linda.  Thanks.  I could add to the list, there are so many benefits to having an agent when buying a FSBO, but folks will find out.

Diane.  It's surely important in Virginia.  MD has required disclosures of material defects, but Virginia gives the buyer the opportunity to discover defects themselves and if they pass, or rely on what the sellers tell them, as so often happens, they are out of luck if they close.  Case law supports the sellers.

Mark.  We can only offer our services.  We can't force folks. 

Susie.  Thanks.  Same to you.

Mike.  Indeed.  Some fwould rather play russian roulette with their money than get representation.

 

Paul.  Thanks for stopping by.  Happy holidays.

Joan.  There are so many protections for a buyer that uses a buyer's agent, they are difficult to even list.

J. Philip.  Indeed.  In the case cited by Scott, the buyer got no house and may lose their earnest money.  Not only did the seller have an attorney, the buyer had nothing.

June.  In deed MD buyers need an agent.  I get calls all the time from buyers asking what they can do "after the fact".

Cassie.  I don't believe that they benefit after.  I believe they benefit before and, therefore, go to foreclosure less often.

Fran.  In many ways Dual Agency is worse because those buyers actually believe the the listing agent will not favor the seller.  Hard to believe but it happens.

Tim.  I'm laughing out loud.  The seller using Zillow is likely going to sell low and lose money or not get an appraisal and lose time and money.

Sally.  Right you are.  Have a wonderful holiday.

Kent.  I agree.  I like the laws in Virginia too.  They need to be publicized more. 

Gene.  Funny.  You are, of course, absolutely right.

Svetlana.  I've never had a seller refuse to pay my fee.  If they want to sell, they pay it.

 

 

Rebecca.  I would put this in Localism but nothing has bee posted there since about Dec. 22.  Not a problem.  Google will get it.  I put it on my own blog too.

Toula.  Absolutely.  We have so much experience and can help our buyers in so many ways.  Folks think that they are doing something fantastic when they find a house to buy.  Shucks, that's the easy part.

 

Hi Lenn - your facts are all important points no matter what state someone is buying in.  No one will work hard and look out for the buyer's best interest than someone advocating directly for them.   And no matter what, there will always be some buyers who think they know more, can do things better than any agent could do for them, just because they've 'bought and sold real estate before'.

Merry Christmas,
Ann

Ann.  You are so right.  Of course, I believe that those are folks who always believe that they know more about anything anytime anyway.

 

Lenn, We present our case much as you have in this blog. It seems the buyers either get it or they are far more educated in our line of work to need us (i.e. Ignorance). Maybe I am a bit facetious but I listen for the clues that tell me I am showing homes for a client to see comps only. It is beyond me someone would purchase without representation, a disclosure, an inspection, and the other points you brought up. Lets face it, we all get listing appointments for someone who bought a FSBO and want to sell, but, they CAN'T. OOOPS too late now!

Lenn: Great post.. Scott hit the nail on the head and you have a great follow up.This is true everywhere.

So many buyer don't realize it until after the closing and then it is too late. Great advice.

I'm in awe.  You keep crankin' 'em out.  Even on Christmas Day.  All Good stuff, though.  And, of course, there are lots of us reading and commenting on Christmas Day, too. Whatever did we do before AR?

I've written in my web site and on some blogs hoping to help some of the buyers who just don't have a clue that it's really to their advantage to have a buyer's agent to represent them and their best interest.

Lenn,

I wouldn't want to buy anything as important as a house without someone at my back.

Especially, in a non-disclosure state.

Lenn, great post. I hope buyer read this. It's so important.

We can thank too many television shows and too many articles in USA Today that seemingly have educated folks that they know as much as they need to know to buy and sell real estate without the services of a REALTOR.

I am running into a rash of callers lately that will only call the listing agent because they expect the listing agent to automatically give up the buyers side of the brokerage fee. Oh yes! They make it very clear they are not about to sign anything, not even a Consumer Guide To Agency Relationships.

The worse part of it -  Somewhere and somehow they have probably been taught to think this way that by observing that a REALTOR had reduced the brokerage fee to make a previous sale happen for them.

Review of HUD is critically important, as well as every other item on your list. Lately there are monetary mistakes on probably 50%of all the HUDs! On a recent sale, my buyer could have easily been shorted $900 without a buyer's agent checking each and every line item closing cost.

AMEN.  A great post.

Lenn, great post.  I've noticed that it's harder for FSBOs to lie to me about property condition stuff.  Even in Virginia.

Lenn - you would be surprised to know how many inspections I do that are FSBO and no agent involved!  at the end of the inspection, so often, my client the buyer will ask me questions that are real estate related.  My answer always is, "That's something I really don't know - you should discuss something like that with your lawyer or real estate agent."  Usually there isn't even a lawyer involved either!

Jay.  The fact that the public will buy or sell real property without an experienced agent reveals the total failure of the public relations of the real estate industry. 

In your examples, what is more serious is the number of home buyers who will buy a FSBO without even having a home inspection.

Patricia.  HA!  So true.  So true.  If buyers only knew how easy an experienced agent can get to the true value and condition of a property.

Mike.  Thanks for dropping by.

Jim.  AH!  I have found mistakes on HUD-1 statements that saved my buyer clients up to $6,000.  One of these days I'll write a post about them.  The list will shock the average reader. 

FACT IS:  Too many agents cannot read a HUD-1.

 

 

 

Jim.  I get them from my IDX site too.  They believe that they're calling the listing agent.  They believe that it's O.K. to buy with only the listing agent involved because they expect that the SELLER'S AGENT has to be FAIR.

The public does not know any better.  The NAR has done nothing to change that perception because they protect dual agency.

Robin.  Perhaps one or two will.  I just changed the title to make it more Google friendly. 

Type the new title in Google. 

 

 

Sandy.  So have I, for about 13 years on my web sites and forums and blogs.

Ken.  Before AR, I wrote daily on RealTalk forum and ePROTalk forum published by the Internet Crusade.  I switched to ActiveRain when Maureen Francis invited me to join.  When I saw the power of AR, I made it my #1 blog.  Love it here. 

Terry.  Indeed.  So many buyers don't realize until the basement is flooded, the roof leaks or winter time comes and the furnace doesn't work.

Roland.  I thought Scott's post was priceless.  A real anecdote that demonstrated the value of having an agent to protect the interest of a home buyer. 

Frank and Jodi.  Funny thing about buyer's agency.  Too many buyers think that finding the home to buy is all we do.  They don't know that finding the home to buy is the easy part.

 

That is sooo true....

We can only hope that buyers will read this wealth of knowledge and heed your warnings!

A lot of buyers don't trust agents and thats a problem.  They feel that the buyers agent just wants them to buy and are really on the sellers side becaus that is who is paying their commission.  With a house there are so many moving parts and hidden pitfalls that having an agent on your side is well worth it. 

Frank and Jodi.  Thanks.

Caren.  From your lips to . . . . .

Morgan.  True.  Many don't trust agents.  I suspect that many would if they weren't prejudiced by the media. 

 

A home buyer is at a disadvantage without a competent buyer broker (agent). An occasional purchase, and information gathered over the internet, cannot fully equip a home buyer to make a home purchase without missteps. The questions that I am asked by prospective home buyers affirm this assertion.

Stephen. Indeed.  I get calls from buyer who insist that they know the market and then proceed to tell me that they want "instant equity". 

Which, of course, tells me that they don't know our market. 

 

Buyers tend to think that they can get a better deal without an agent but you are absolutely right....buyer beware!  Most buyers are not aware of how to protect themselves.

Buyers tend to think that they can get a better deal without an agent but you are absolutely right....buyer beware!  Most buyers are not aware of how to protect themselves.

Sonja.  Indeed.  Buyers believe that, if they can find the house they want to buy, that the rest must be easy.