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In the last few years there has been a shift to a buyer's marketplace in Michigan real estate and many of the agents who focused on listing property have gotten involved in working for purchasers as well. This shift has brought some obvious conflicts of interest that you want to be careful of when you pick out a real estate firm to list your property. If a real estate agent/brokerage lists your home and it sells by way of another office, each company will generally collect about three percent of the sales price depending on the local market customs. However, if the listing office provides the buyer and completes the transaction they typically double their compensation. If they bring in that buyer and direct that buyer to an allied mortgage company, their income may triple because of the income they make on the home loan. The role of a listing agent should be to get your property sold for the highest price and best terms. But if that same agent is working as a "buyer's broker" you are liable to get caught in the middle of their desire to "double dip" or "triple dip" the transaction. That is a considerable motivation for real estate professionals to compromise your interests in the transaction. Just think of the pressure they might put on you to accept an offer from a home purchaser or a request for repairs for a buyer when it may possibly double or triple their income for just a few moments of sales pressure on you. In many markets these licensees/offices even promote their ability to save purchasers money at your expense. Here is an idea: Do an search for the term: savings guarantee real estate home buying You will see dozens of real estate companies who take listings, yet guarantee to purchasers that they will negotiate $5,000, $10,000, even as much as $25,000 off the asking price. How would it cause you feel if you signed a listing agreement then found out later the licensee/brokerage guaranteed some purchaser that they would trim money off your thoroughly researched price? The answer to this issue is straight forward. Before you decide on a firm/licensee to even interview, do an world wide web search for their name and "savings guarantee" and/or "buyer services". See who they are really going to be working for. If they seem focused on working for buyers, find a different brokerage. Selling a home and moving is tough enough, you don't need to have problems with your real estate company. Also, see if their web sites promote a specific home loan firm. If they have a mortgage affiliate it means that they have an added motivation that is not in line with getting you the highest price and best terms for your home. If they pass those two tests and you end up meeting with them, ask them how often their company represents both the purchaser and the seller in the same deal. If they perceive your concern they will often reply with something like "it is better for you if we bring in the purchaser because then we have more control over that buyer". Just realize that implies that tomorrow they will be telling a purchaser that "it is better for you if you buy one of our listings because we have more control over the seller". And that seller might be you. If you are able to avoid these firms and agents that claim to be buyer brokers you should be able to find a dedicated real estate company and agent. And that will increase your chances to have a smooth transaction when you put your home on the market
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If you are interested in buying a home, visit the website of the Ann Arbor Buyer's Real Estate Company For information on Ann Arbor open houses visit Open Houses in Ann Arbor
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