Real Estate Conversations with Brenda: I've Always Heard Never Offer Full Price...And Other Home Buying Myths

I've Always Heard Never Offer Full Price...And Other Home Buying Myths

Apparently there's a few myths running around or someone's getting some bad information on the home buying process in the Greater San Antonio TX area on Google or Wikipedia or something.

As your local Realtor® in San Antonio, I feel it's my duty to set you straight on a few things to help you in your home buying journey.Home Buying Myths in the San Antonio TX

Popular Myth #1

"I've Always Heard that you should NEVER OFFER FULL PRICE to the seller and should at least come down $10,000"

Actually, I've heard this before from some prospective buyers a few years back and it wasn't true then, and it most definitely isn't true now.  

Homes are coming off the market almost as fast as the agent can put them in the MLS with mulitple offers, and sellers are getting at least full price for their homes (in some cases, more) and seller concessions are going way down.  

Currently and for the past year or so, the San Antonio TX Real Estate market has been experiencing this type of market and I really don't see it ending soon. 

Buyers with this type of philosophy are missing out on homes that they really want and that's truly sad.  As your buyer's agent for San Antonio, I will help you determine the best buying strategy once we find that perfect home for sale you want to buy.  

Popular Myth #2

"If I, as the buyer, work through the listing agent, I will get a deal...or they will reduce the home price by 3% because I don't have an agent."

NO, NO, NO...I have said this until I am blue in the face.  The listing agent works FOR the seller.  They are under a written agreement or contract, if you will, to provide fiduciary duties to their home seller.  This includes getting the HOME SELLER the best price and the best possible terms.  

NOT YOU.  

IF the listing agent is trying to get you a "deal" then they are breaching their contract with their seller.

Since there is no such thing as dual agency in the State of Texas, the listing agent cannot have a buyer's representation agreement with you (thereby owing you fiduciary duties) and have an exclusive listing agreement with the seller and work the same transaction.  

It's considered a conflict of interest here in Texas.  

What we do have is called Intermediary status and then that listing agent then becomes a middle person who can only pass along documents.  They cannot advise you or the seller.  

The listing agent can certainly write up the contract for you, but dollars to donuts, they are not getting you any type of "deal" so that they can double side the transaction.  They do have to treat you honestly and fairly, but that doesn't mean dropping the price of the home or giving you any incentives.  

Popular Myth #3

"I can work with as many Buyers Agents as I want"

When you call me to see a home for sale in the San Antonio TX area that you found on Zillow or some other source, I am going to ask you if you are working with another agent.  

If you say no, then I am going to start to explain the home buying process to you and meet to have a buyer's consultation.  At that meeting, I am going to want you to sign my buyer's representative agreement.  This will ensure that you promise to only work through my Brokerage with me as your agent.

Why?  Because I will not get paid at the end of the day if you don't work exclusively through me to help you find a home and get you through the entire home buying process.

Most agents will expect you to sign one of these because once you put us to work, there's a lot that goes into finding you a home and getting you from contract to closing.  Agents do NOT get paid until we sell you a home.  

The time that goes into getting you into a home can range from days to months and once we find you that home, it takes about 30 to 45 days for the rest of the process.  

IF by chance, I don't get you to sign my buyer's rep and you as the buyer decide one day to write up a contract with another agent just on a whim, (because they will ask you if you have signed anything), then any and all time spent with you guiding you and helping you goes uncompensated.  

When I become your buyer's agent, I will do my very best to find you the best home, and get you the best price and terms to get you into your home but at the end of the day, I do this for my living and I expect my buyers to work exclusively through me.

Popular Myth #4

"Agents will want me to offer full price or only show me homes that are more expensive so they make more money."

First, see populuar myth number one.  Second, this is not true.  When I become your buyers agent, we will go over what you can afford and what homes are in your price range.  We will also discuss what you are comfortable paying for.  

I will only show you those homes that you want to see, and are able to purchase.  Once we find the home, I provide a comparable market analysis to you to show you what homes are selling for in the area and what the home will most likely appraise for.  

Now, during that we will look at the best offer strategy for you.  If offering full price for the home will get you the home that you want (and will appraise at that value) and the terms you want, we will discuss that, if not then we move on.

The key is that I work for you.  Yes, I do get paid more if you buy more, but it's not about me.   It's about what you want and are willing to purchase and pay for.  Ask any of my previous happy buyers.  I don't ever show them homes they are able to purchase or don't want to purchase.  

These are just a few of the things I have heard buyers say in the past and it's important that if you are looking to purchase a home, that you are as informed as possible.  There is lots and lots of information about the home buying process, or how to buy a home on the Internet.  Much of this information can be misleading or downright false.

If you are looking to purchase a home in the Greater San Antonio TX area and are looking for a buyer's agent that will help you, then give me Brenda Mullen, your local Realtor® in San Antonio TX a call at 210-807-0819 today and put me to work for you today!

 

Brenda Mullen – San Antonio Texas Real Estate Professional

Brenda Mullen Your San Antonio TX Real Estate Agent
 
Selling a San Antonio Texas area home involves many steps and having an experienced  San Antonio  Texas Real Estate Agent by your side will make the transaction run a lot smoother. I would love to be your San Antonio Texas Area Real Estate Professional! I assist both buyers and sellers in the San Antonio Texas area with either the purchase and or sale of residential real estate.
 
As an Accredited Buyer’s Agent, I have received special training to guide and educate you through the entire home buying process. From start to finish, I listen to your needs and desires in what you would like and take the information you give me to find you home.
 
As your San Antonio Texas listing agent I am well versed on the local San Antonio Texas area Real Estate Market. You can expect personalized service that includes a detailed consultation on how to best position your home to be competitive in today’s market with an in depth comparative market analysis, and advice on staging. I use the latest and most up-to-date marketing methods to get your home in front of as many buyers as possible. Being your San Antonio Texas area Realtor® not only involves just finding the home or selling the home, but being your guide, negotiator, advisor and advocate and making sure that your needs and goals are met. Being your San Antonio Texas area Realtor® is one of my truest passions, and “Helping You Find Home” is my number one priority.
 
 
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Brenda Mullen
Broker-Associate/Realtor®, ALHS®, MRP®, ABR®, ePro®

Team Leader The Mullen Group with RE/MAX Access - Helping You Find Home
19115 FM 2252 STE 15

 

Comment balloon 8 commentsBrenda Mullen • March 11 2015 01:33PM

Comments

Hi Brenda Mullen  buyers need a buyer's agent to guide them from start to finish..... the buyer will not get caught in a trap because of these myths....

Posted by Barbara Todaro, "Franklin MA Homes" (RE/MAX Executive Realty ) over 3 years ago

Yes, indeed Barbara Todaro .  Buyers who believe these myths end up either losing the home they want or really end up paying too much by not working with a knowledgeable buyer's agent.  

Posted by Brenda Mullen, Your San Antonio TX Real Estate Agent!! (RE/MAX Access) over 3 years ago

Two of the dumbest "myths" that are out there.   Great ways to lose out on the home you want to buy!

Posted by Fred Griffin, Licensed Florida Real Estate Broker (Fred Griffin Real Estate) over 3 years ago

As long as you have the Clark Howards of the world telling people to ask for a commission discount because you call the listing agent these things will keep happening.

Posted by Tammy Lankford,, Broker GA Lake Sinclair/Eatonton/Milledgeville (Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668) over 3 years ago

I've heard all of these myths and they represent the exact reason people need to work with a great real estate professional.  Every market is different, and each situation within a market can involve a different strategy.  Great post!

 

Posted by John Meussner, #MortgageMadeEasy Walnut Creek, CA 484-680-4852 (Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA,) over 3 years ago

I agree Fred Griffin -

Tammy Lankford -I don't even know who that is lol...perhaps I should.  I gather he is one that thinks we earn too much money or something.

John Meussner -I think so too and thank you :)

Posted by Brenda Mullen, Your San Antonio TX Real Estate Agent!! (RE/MAX Access) over 3 years ago

Brenda, Good list of these myths and unfortuately too many buyers think one or more are fact! The only way to stop this crap is to try to educated them with info like this blog. Thanks for the post and commenting on my blog. 

Posted by Robert Bob Gilbert, Your Katy TX ( West of Houston) Real Estate Expert (Berkshire Hathaway HomeServices Anderson Properties) over 3 years ago

Hi Brenda,  Good blog!   Lots of myths exposed, hopefully many buyers will read and learn.

Posted by Ricki Eichler McCallum, Broker,GRI,ABR, - Your Coastal Bend Home Source (CastNet Realty) over 3 years ago

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