A direct buyer in the real estate market is someone who purchases properties without using a real estate agent. These buyers may be individuals or corporations, but they use a variety of funding options to purchase properties, such as personal or corporate cash or Wall Street-backed or venture capitalist funds. The common characteristic of these buyers is that they purchase directly from a seller. These are things you should know about direct buyer real estate Tennessee.
Extensive Real Estate Knowledge
Direct buyers have significant knowledge about the real estate industry and the market they are working in. They typically only work with properties’ listing agents, not buyer’s agents. They also understand how to search the available property listings. They will often search through property databases until they find listings that are of interest. Then, they will contact the listing agent for further details. These individuals tend to pursue their property investments alone, without partnerships with industry professionals, such as brokers, agents or lawyers.
Agents Represent Both Parties
Because they do not use a buyer’s agent, when direct buyers find properties, a dual agency situation is created. This means that the listing agency represents both the seller and buyer. Because of potential conflicts of interest, these agents are required to inform both parties of their dual representation. They may even be required to fill out state paperwork denoting their status. Sellers and buyers must both consent to dual agency representation. If one or both parties refuse to consent, an intermediary may be appointed.
Commissions in a dual agency situation can be challenging. Because these agents represent both the buyer and seller, they may claim both commissions. However, the parties may negotiate lower fees because of the position of the agent. Therefore, sellers should always ask about the agent’s commission in the case of a direct buyer. Any commission savings should also be passed on to the seller.
If you are ready to buy or sell a home, consider learning more about the direct buyer process.