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> “There are buyers that aren’t going to know the steps to buy a home,” Davis said. “They have to pay for a down payment, closing costs, appraisals, inspections
by amluto 3y ago
> “There are buyers that aren’t going to know the steps to buy a home,” Davis said. “They have to pay for a down payment, closing costs, appraisals, inspections. If they also have to come up with money to pay for a buyer’s agent, some just won’t and they’ll get in over their heads or they won’t buy at all. Not having representation will make the market less inclusive.”
The entire buyer’s agent system is absurd right now. The buyer’s agent supposedly represents the buyer, but they have an extremely strong incentive to get their client to close on a purchase at all, and a secondary incentive to get their client to pay as much as possible. If anything, it seems to me that this is the wrong kind of inclusive — if anything, it pushes people to buy a house even when they shouldn’t.
There should absolutely be agents of a sort who can represent a person or family who is considering buying a house and for whom buying at all is not obviously the right decision, but the current fee structure does not encourage good representation of this sort.