There's a great article in the September 2008 issue of Consumer Reports Magazine about "How to Protect Yourself in Today's Rocky Real Estate Market."  It explains the results of Real Estate section of the Consumer Reports National Research Center's Annual Questionnaire of readers that included responses from thousands of readers who either sold or tried to sell a home, bought a home, or both bought and sold a home in the past year.  It brought to light some interesting facts that both confirmed and refuted common Real Estate ideas.  I highly recommend that you pick up the issue or read the article online (some parts of their website require a paid subscription) if you're thinking about buying or selling a home in the near future.

The part of the article that I found to be most interesting was the following:

• The 66% of the readers who used a real estate agent in buying a home paid an average of $5,000 less than the listing price
• The 34% of buyers who negotiated their own deals, without an agent, paid close to the asking price

So the buyer's who used a buyer's agent paid less on average than the buyers who chose to go on their own.  And not only did they save money, but in most cases they likely didn't pay a penny of their buyer's agent commission out of their pocket because the commissions were paid by the seller.  How's that for a great deal?  Where else can you get the assistance of a knowledgeable industry expert without paying for their services and save money?

If a buyer is using the Listing Agent (Seller's Agent) to negotiate on their behalf, then they are not having their best interests represented.  The Listing Agent is contractually bound to represent the best interests of the seller at all times, which means they cannot advise a buyer on what price to offer on the house (except the list price) and they don't need to keep any information a buyer reveals to them confidential.  So it's no wonder that the buyers in the Consumer Reports survey that choose to go it alone ended up paying more than buyers who used an agent.

In Connecticut, a home buyer has the right to have an Exclusive Buyer's Agent represent them in their home purchase.  So be a smart consumer and take advantage of the expertise that a Buyer's Agent can offer you on one of the most important (and expensive) purchases you'll make in your lifetime.  But don't use just any agent, be sure to find a Buyer's Agent who will provide you with the information you need to make an educated decision and will work hard for you before, during and after your purchase.  And remember, your Buyer's Agent works for you, so be sure to let him or her know what type of service you expect and don't be shy about telling your agent if they're not meeting your expectations.