Do Buyers Prefer Real Estate Agents?

Have you ever purchased a used car? Did you buy your car from the owner direct or from a dealer? If you bought from a dealer, it is most likely the case that you are not a mechanic and you prefer the security, professionalism and convenience that a dealer provides. If you bought direct from the owner, you are likely mechanically savvy and you found a bargain and did not need financing.

The reason that real estate people exist is because they are in high demand by buyers. Sellers may wonder why its so hard to sell BY OWNER. Its because the mass market of buyers have little mechanical knowledge of homes and prefer dealers to ensure a seamless transaction. Buyers who are mechanically savvy are often extreme bargain hunters who seek bargains from direct sellers.

Buyers prefer to roll all their purchase expenses into one payment. Experienced sellers understand that offering a percentage in sale rebates helps the buyer to buy the home at a higher price. Most buyers want an agent to help them, but don’t want to spend any upfront cash or be liable pay the agent. When a seller offers the rebate, the buyer agent gets paid at closing from the proceeds. Essentially, the buyer gets a higher mortgage amount and the mortgage money pays the agents involved. If the seller is happy with their net sale price, everyone is loving life. The buyer is super happy because they enjoyed the first class services of a professional dealer helping them through the process. They buyer pays for those services for the next 30 years as mortgage payments.

In Summary, the main reason buyers prefer agents is because buyers lack knowledge about the mechanicals of homes as well as the home buying, inspecting, financing and negotiation processes. They would rather pay someone else to know for them.

The truth is that most buyers prefer real estate agents on both the listing side and the selling side. When buyer preferences change, these services will be phased out. The wise seller is smart to consider the statistical nature of the buyers choices when determining how to sell their own real estate.

-Daniel Edward Novak 941-323-8685