In short, it is to get you a better deal than you would have obtained otherwise. That’s all there is to it! This includes contacting you precisely what you want, keeping you away from what you don’t want, saving you time and hassle, saving you money, ensuring that all paperwork is written to your advantage, keeping you in control, and ensuring that everything is handled until the sale is completed. What is the perfect way to find the buyers agents?
Having a buyer agent is the equivalent of having a repair manual (viewing homes online) versus having a mechanic. (actually buying one). If you are not in the real estate industry, you will be unfamiliar with the intricacies of purchasing a home. (meaning no offense to you). You’ll also have no idea how to make it work for you.
The listing agent will use this fact to get the seller a better deal at your expense. Just because an agent is friendly and drives you around doesn’t mean he’s working for you! Unless you have a written agreement to the contrary, he is the SELLER’S agent, not YOUR agent, and will work to get the best deal for the seller!
The buyer agent works for YOU to get you what you want and the best deal possible. This also keeps you from being at a significant disadvantage with the seller and realizing six months later that you could have done better.
Is the agent you’re working with looking out for your best interests? If your agent is not also your buyer’s agent, the answer is “NO!”
A buyer agent is trained in real estate and likely works in it daily, so the agent can ensure that everything works for the home buyer, such as:
- Finding a “pool” of homes for sale that have the features the homebuyer wants using the sources of information the Realtor has developed
- Ability to determine which of these homes are also good buys, so you don’t overpay
- Getting a good idea of a house’s condition and any flaws simply by looking at it will save the homebuyer a lot of time and trouble.
- Many real estate agents preview homes for sale, so they have seen them in person (rather than just on a computer screen), are familiar with their condition, and can save you time.
- Understanding what is expected and negotiating the best price and terms for the home buyer can save you thousands of dollars on your purchase.
- Ensure that all the required real estate forms and disclosures are handled and written in your favor.
- Knowledge of different companies that will work best for various situations such as title, inspections, appraisals, surveys, insurance, flood insurance, and other matters handled from acceptance to close.
- I know a few mortgage officers who have proven competent, hardworking, and capable of doing what they say upfront.
- Handling the numerous day-to-day problems that must be addressed for the transaction to be completed and for which most people lack the time, willingness, or knowledge. Some of these problems will delay or even derail a closing and disrupt your plans to move – causing you many problems and costing you money – and your moving van can’t unload until all i’s are dotted and t’s are crossed.
How can you tell if a real estate agent works for the buyer or the seller?
If you do not have a WRITTEN buyer representation agreement with a real estate agent, that agent wil, BY DEFAULT, be working for the home seller and will get the best deal for them. (maybe at your expense.) The typical scenario works like this: The Realtor says that the owner doesn’t want to negotiate on terms.
Why? Because he is trying to get the best deal for THEM, not YOU! Is he showing you listings that aren’t what you want? That’s because he is trying to sell the houses listed with his company ONLY! (I can’t blame him; that’s what he’s paid to do.) Did the sellers learn that you would pay the total asking price? That’s because YOUR agent informed THEM of what you said! (He MUST do this. He’s THEIR agent, not YOURs.) Of course, you wouldn’t go into a courtroom and expect the other guy’s lawyer to look out for you, would you? The same idea applies to real estate agents.
What are ordinary reservations about hiring a Buyer Agent?
1. You want to do it all yourself
2. You don’t want to pay for an agent
3. You don’t want the hassle of dealing with an agent
1. Are you sure you know everything you need to know to get the home you want at a reasonable price and with the paperwork for things to go your way? Are you “in the know” regarding current real estate information? Do you have a feel for the market? Do you know about real estate procedures and which forms to use? Do you want to be a martyr, or do you want to buy a house? The Realtor has already learned all this from the book and through experience.
2. There is usually no extra charge for a Buyer Agent to work for you because the listing agent splits his fee with the Buyer agent. Aside from that, if an agent works for the seller, they both get paid the same amount, and he didn’t even negotiate a better deal for you!
3. A buyer agent reduces your hassle: without one, you will spend long hours looking through ads or online listings, making calls for showings, not getting callbacks, driving out to see houses that turn out to be not what you want, feeling awkward in other people’s homes, spending time on papers, making multiple calls every day to keep things on track, dealing with lenders who need a daily ‘nudge,’ requests for information (and knowing what information they are talking about), coordinating closing, running across town for documents, and doing everything at odd hours on weekends. (Ahhh, the pleasures of buying a home!) The buyer agent does all this and reports the highlights to you.
What it boils down to is that you will be working with an agent regardless of which home you purchase, whether from a private owner selling their house through a real estate agent who represents THEM (not you) or from a builder’s representative (the agent who works in the sales office on the new home lot) who represents the BUILDER. (not you). You can also work with an agent who is looking out for YOU. Which do you like better?
Read also: Creating Exclusive Real Estate Leads By Means Of Specialization