subject: Why Direct Buyers Are Preferred Over Brokers [print this page] A real estate broker refers to a person or entity who serves as an intermediary, or middleman, between sellers and buyers of real estate, and is the person who initiates or attempts to find property sellers and buyers.
A real estate broker and his accompanying sales team in the US housing market will assist sellers in promoting and selling their property, usually negotiating for the highest price or rate possible, and under the best terms. A person is required to obtain a license first in order to receive compensation or a commission for services rendered as a licensed real estate broker and this is standard practice in the United States.
Unlicensed real estate activity is considered illegal, but buyers and sellers who act as principals in the sale or purchase of real estate are not required to be licensed. In some states however, lawyers are allowed to handle real estate sales, and are paid fees and commissions without the need to be licensed as brokers or agents.
Marketing their home for sale by themselves and also carrying the weight of the work on the side of the buyer is something that quite a few buyers as well as sellers are comfortable doing. What unrepresented buyers or seller would do is an equal amount of work as agents or licensed brokers.
An unrepresented seller more than often approaches a listing agent for a property they represent. If somehow the home seller convinces the agent to give back the "buyer's agent share" to him, it is not as if the listing agent is not going to be picking up the slack for the work the seller does not do or is inexperienced in doing at.
Directly offering his/her property to a buyer by negotiating deals directly and haggling over the best possible price and payment method is what the unrepresented seller is doing at most. On the other hand, a home owner would not have to cut profits with established brokers agents, and would not find the need to dole over a substantial amount of commission to the agent is actually a good thing when dealing with direct buyers over brokers or agents.
In case a home or property owner would decide to sell his asset on his own and not avail the services of a licensed broker, then it is essential that they be ready to prepare all necessary papers describing the property for advertising, pamphlets, open houses, and others. Advertising a property is often the biggest outside expense in listing a property, and a home seller should readily shoulder the expense for this.
Holding an open house to show the property would be a rather inexpensive venue for the home seller to show off his property in some aspects. The seller should always be available to answer any questions about the property and to schedule showing appointments to prospective buyers because that's what it means to be a contact person.
by: Katharine Benjamin
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