One response to “10 Rookie Home Buyer Mistakes to Avoid (U.S. News & World Report)”

  1. Liz Provo

    Interesting article. The lead-in tells the tale of a first time home buyer who uses an agent that is more concerned with his $12,000 commission than helping the buyer find the right home in a good location. The agent helps close the deal on the “money pit” by recommending an easy home inspector. As I read the article I was prepared to learn about the role of “dual agents” and ways to avoid that scenario from happening. Instead, the rest of the article has little to do with the subject.

    I think the author could have done a better job of helping readers understand the role of real estate agents, how to choose an agent that works for him and how to make sure the agent is able to show him ALL properties that meet his criteria, not just those in the MLS. In Section #5 there appears to be the following quote from Ray Boss, Jr., a six-year real estate agent: “Realtors have access to all the homes on the market through the multiple listing service, or MLS” This is not a fact, Ray. I believe NAR stats will prove that only 80% of agent-listed homes appear on the MLS, the other 20% are marketed outside the MLS. Mr. Boss has not included all the properties that are offered exclusively “by owner”. It is believed that 25-30% of all real estate transactions are completed without a real estate agent. While some of these properties may appear in the MLS under an entry-only listing, most do not. Mr. Boss does not appear to be a buyer’s agent and would probably not show a property not listed by a fellow agent as he would have no way of being paid a commission on the sale.

    Too bad the buyer lived in Maryland when it came time for the home inspection. Massachusetts prohibits real estate agents from recommending inspectors. Only a buyer’s agent, one working exclusively for the buyer, may provide recommendations.

    I would have liked the author to spend more time educating buyers on the use of an exclusive buyer’s agent and ways to avoid falling prey to “dual agency” where the lines of representation are blurred. Throughout the article, there appear to be numerous ways in which choosing a “professional” has little bearing on the outcome. If the buyer bears the burden of selecting the best schools, the right location, and a trustworthy home inspector along with how to be financially ready to purchase, just what is it that the agent/realtor is doing on the client’s behalf?

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