Okay, today, I'm mad at CNN. No, not because I'm a huge Fox News supporter. No, not because I don't like Barack Obama. No, not because of Wolf Blitzer's beard. I'm upset because of an article I read last night on their Real Estate page.
Here's the title:
Is your realtor on your side?
Make sure your agent gets you the best house at the best price.
By Stephen Gandel, Money Magazine senior writer
Okay, so it was written by a guy at Money Magazine. Well, then, let me be mad at them too.
"Why?" you ask. "Dan, calm down," you say. Yes, the title sounds innocent enough. This article has a good premise or good intentions, but it does not deliver the way it should.
The intent of the article is to make homebuyers aware that they need to be careful when dealing with Realtors. Yes, that's true. Just as in every profession, there are some excellent Realtors, while at the same time, there seem to be quite a few who are just in it for the money. Good thing Cuba Gooding, JR's "Jerry McGuire" character isn't your Realtor. "Show me the money!"
The article discusses how since this is a tougher market than in the past for sellers, that sellers are now offering incentives to buyer's agents. For example, there are a lot of listings on the market today that haven't sold in over 6 months. Those listing agents may now be offering buyer's agents an extra $500 for a contract. The incentive may even be greater than $500. It may be $1000. It may be a gift card to the Olive Garden. Who knows. Whatever the case, the article is trying to make buyers aware of this. That's good. Thanks CNN and Money Magazine. You're looking out for homebuyer's best interests.
But if you have a good, and above all else, ethical Realtor working on your behalf when buying a house, that Realtor should disclose the incentive to you. An ethical Realtor should ALWAYS disclose everything to the buyer, and ALWAYS put the needs of the homebuyer first.
The reason I'm so upset by this article is because of what came at the conclusion. One of the solutions for homebuyers to consider is "GO IT ALONE."
Wait! What?!?!?!
Why would a buyer buy a house without the help of a Realtor? If a buyer suspects their Realtor is in it for the money or is sacrificing their needs, GET A NEW REALTOR. But please, don't "go it alone."
As a buyer, it's free to use a Realtor. A Realtor will negotiate for you. A Realtor will know of many more properties for sale. A Realtor has access to a lot more information on those properties than a buyer. A Realtor is trained and licensed in contracts and the law. DON'T EVER "GO IT ALONE!"
That may be Money Magazine's solution, but unless you know real estate law like the back of your hand, please use a Realtor.
I don't care if you don't use me as your Realtor. I know there's billions of people in this world. Many of them will move, but let's say 99.9% of them won't use me. That's fine. Just please use a Realtor. Any Realtor. Someone you trust. It's in your best interest.
And that's what I am looking out for.... YOUR BEST INTERESTS.
But evidently Money Magazine thinks your best interest is not only to "go it alone," but also "be alone" when you run the risk of making a mistake in the contract or miss out on the perfect house and settle for a less desired one.
Dan Hamilton
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