What is the worst way to buy a home?

<<>> The worst way to buy a home is to allow the realtors to select your home and set your price. Let me explain.

I was looking for a home to purchase. My realtor understood that I was a real estate appraiser. My time frame was limited. Our goal was to look at homes for two days and then I would select the best homes in this area. After looking, we decided to make an offer. Before I made the offer, I told the realtor that I would like to look at sold homes in the area to be sure that I’m not paying too much for the home.

I reviewed comparable sales and decided what I would offer. The realtor told me that we shouldn’t offer $5000 less than asking price, as the owner just purchase the home last year and this would cause the owner of the home to lose money. This is when I learned that even though the some realtors tell you they are working for your, their main motivation is to close a sale.

You see, there is a listing agent. This is the realtor who lists the property in the MLS. There is the buyer’s agent, who is supposed to represent the buyer. The buyer’s agent and the listing agent will split the commission. This is why our agent did not want to lower the price. His thinking is that he will lose his commission if the owners of the home did not accept my offer.

So the worst way to buy a home is to allow your realtors to set the sales price of your new home. After all, you will be the one paying for your new home for the next 30 years.