Some buyers think that if they do not have a buyer’s agent, there is one less person between the buyer and the seller and they will have a financial advantage.
Wrong, and a big mistake!
Below is the explanation why a buyer should always act via a buyer’s agent.
Let's take a look at how it works in Hawaii:
If a property seller (S) wants to sell a property, S hires a real estate agent, who lists the property in MLS and takes care of marketing and selling the property. The agent is called seller's agent (SA) or listing agent. SA represents seller and protects seller's interests. SA has a contract with S, that if the property is sold, a percentage of the property price will be paid to the brokerage of SA. The percentage is a fixed number that the seller will have to pay. If some other agent BA finds a buyer for the property, SA brokerage will pay a part of this percentage to the BA brokerage (BA stands for buyer's agent).
Example:
Let’s say S wants to sell her house. She signs a contract with SA that states: “in case the house is sold, the brokerage of SA will get 6% for selling services” Now, there is a buyer B who has a BA. BA finds this house for the buyer B. In Hawaii, buyer does not compensate BA. The brokerage of SA will pay 3% to the brokerage of BA for finding the buyer. What is important to understand is that no matter how many agents are involved in the transaction, the seller has to pay the same percent (6% in the example above) for the selling services.
Even if there is no BA. So, the seller DOES NOT CARE how many agents are in the middle. It is a fixed percentage.
What does it mean for the buyer?
Some buyers think that if they do not have an agent, there is one less person between the buyer and the seller and they will have a financial advantage over someone, who has a buyer’s agent. Or they think that the buyer or the seller will save more money if there is one less person.
Wrong!
As you can see, the 6% in the contract is a fixed number. If there is no buyer’s agent, the 6% will simply be paid to the SA brokerage.
However, the buyer without buyer’s agent will lose:
Now, when you understand that buying a property in Hawaii without a buyer's agent is like jumping without a parachute, may we suggest you an experienced agent?
Not only will you get to work with a highly trained professional working for a reputable company and guaranteed by this website, but you will also get a chance to access the password protected parts of this site and create your own custom searches, which will make finding your dream place much easier. We are highly selective in chosing our agents and want to provide you with outstanding experience in your real estate related business. We will do our best, so that you recommend us to other people who you know.
Please contact John or email for more information.
If you would like to use all or part of this article, please refer to John Waln and this website.
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