Tennessee Real Estate
Nashville Realtor

The reason that this is important is because you have a right to be represented. Many people just don't realize how important this can be. To illustrate lets say you are driving down a street and you see a house you like for sale. You then call the agent listing the house and discover the house is listed for $150,000. You set up an appointment to see the interior. The agent opens the house for you to see and points out lots of neat little features. You are overcome with love for this neat little home and must have it. The agent helps you write a contract, find a mortgage and close the sale. The agent gets her commission, lets say 7%, and you have your house.

Now lets take a different scenario. You're driving down the street and see a house you like. You note the address and call a realtor to represent you. Usually an ABR (Accredited Buyer Representative) is preferred. An appointment to see the inside is made and you and your realtor view the home with or without the listing Agent. During the showing your Agent examines the home closely. Your agent also shows you similar properties in the area. After all the showings you are still interested in the first house. Your agent then performs a CMA (Comparable Market Analysis) which shows several similar properties selling for about $5.00 a square foot less than the list price. He also goes in to a program that pulls up courthouse records on the property. He discovers that the home was purchased 15 months prior for $135,000. After requesting a property disclosure on the listing he finds that some improvements, about $2,000 worth have been performed.

It is now time for you and your agent to formulate an offer based on acquired knowledge. Together you decide to offer $138,000 with a contingency that it passes a home inspection. The home seller counters at $143,000. After negotiations you settle on $141,5000. Your agent helps you find a loan, home inspector and closing attorney. During the home inspection a defective hot water heater is discovered. As per the contract your agent wrote the seller is required to replace it. The cost is $500. Closing proceeds and the agents split a 7% commission. The buyer is $8,500 better off plus they now have a new $500 hot water heater.