Tip #14: Going Direct

Going Direct in a Transaction

Negotiating both sides of a Real Estate transaction can be quite challenging. Often times it is very difficult to represent both the buyer and the seller. A Broker or Agent must disclose to both parties if they are negotiating for both sides.

Here are some reasons why going direct to a Sellers Agent may do more harm than good:

• Fiduciary Responsibility – The Sellers Broker has a fiduciary role to the the seller. His job is to look out for the seller and represent them in the fullest capacity
• Purchase Price – In this market, prices are going over asking price. You will not save money by doing a direct deal. You may also lose favorable contract terms such as contingencies and other important criteria if you are working with a sellers agent that is looking out for the seller
• Brokerage Commission – Real Estate Brokers and Agents are still collecting full commission the majority of the time and are not discounting their services for a direct deal. This has become standard in the industry regardless of whether there is a cooperating Broker involved or not
• Your Own Representation – Its important to have a Buyers Broker that looks out for and provides honest investment advice. A sellers Broker is trying to sell the property they are marketing regardless of the pitfalls. Exclusive representation should provide you with an honest look at the property you are considering and alternative properties that may be a potential fit
• Board Application – You need the right person to construct and submit your board application. If the job is done incorrectly, the board may fail to approve your purchase. As stated in a previous article, a board application process can be quite arduous.
• Vendors & Resources – Having the most experienced and well vetted resources provided by someone you trust is critical. A Real Estate purchase is a very large decision and you deserve to work with the best parties in the marketplace

As stated in our previous article, we highly recommend having your own representation when purchasing and selling if you are able to find a Broker that you can trust to handle your transaction.

For further information or assistance with purchasing or selling, please contact garayrealestate@gmail.com