Buying Whidbey Island Real Estate
Buying a home or property can be exciting but also stressful. If you don't know all the details of a real estate transaction it can also be confusing. But it helps to have the right professional on your side throughout the ordeal.
Make sure you have a buyer's agent! - Of course we are going to say this; it's what we do. But there is really no reason NOT to have a buyer's agent. It costs the buyer nothing to use a buyers agent. That's right! The commission fee is not built into your closing costs or the cost of the Whidbey Island real estate. It really costs buyers nothing to use an real estate agent.
Here's how it works: When a home owner decides to sell their Whidbey Island home or property they typically enlist the help of a real estate broker to facilitate and market the listing. This agent is called the listing or seller's agent. They market the home on the MLS, probably place print and internet ads and talk to all their buyers and fellow agents about the listing. The seller and this agent negotiate a commission for selling the home. If this agent also brings a buyer, the listing agent receives all the commission. If a buyer's agent not associated with the listing brings the buyer, that commission is now split between the listing agent and the buyer's agent. The seller pays the complete commission for all agents involved. The buyer pays nothing to either agent.
You can see why most listing agents usually want to sell their own Whidbey Island properties but this is usually not the case. Most buyer's agents have their own buyer's that they are trying to find the perfect home for. When a listing comes on the market that fits what their buyer is looking for, that buyer's agent informs the buyer and if the sale goes through, that agent is paid from the seller of the home the buyer chooses. You can see why it makes perfect sense to use a buyer's agent as they are completely working for you and not any particular seller. They truly have your best interest at heart.
Buyer's agents will also help in setting up the right resources such as appraisals, inspections, escrow and repairs. Buyer's agent keep your financial situations confidential and don't reveal anything that can alter a seller's perception of your offer as long as it's legal.
For example: Let's say that a listing agent sits their own open house on a Whidbey Island home listed at $300,000. This listing agent meets a buyer without a buyer's agent. Those buyers tell the listing agent they love the house and are approved for over $300,000. The house has been on the market for several months though and they don't want to offer that much on the house. So they offer$260,000 but really love it and would probably buy it at full price if the issue was pressured.
The listing agent now knows this information and tells their seller (whom they originally had the first relationship with) that the buyers will probably buy no matter what and that they are approved for the full price. The seller's in turn come back with a full price counter offer knowing the buyers will probably buy. If the buyer's had their own agent, that agent would simply put in the offer for $260,000 with a pre-approved letter from the buyer's lender up to the exact amount offered regardless of actual approval amount. The buyer's agent wouldn't mention anything about the love of the property, the actual approval amount or financial situation. Since the seller's know now nothing about the buyer's, they are more likely to accept the lower offer considering the risk that the buyer's may walk or just not be able to afford any more.
You can now see how having a buyer's agent saved this buyer $40,000 on a Whidbey Island homes purchase.