When it comes to buying a home, a knowledgable buyer’s agent can be worth their weight in gold. Real estate transactions can be complicated, and there are many unknown pitfalls that inexperienced buyers can fall in to. But with today’s myriad of real estate blog and advice websites, is working with a buyers agent really necessary? Here are some essential pros and cons that you should consider if you’re still deciding whether to work with a buyers agent.
Real estate agents must be licensed in the state they practice business. This means that they have passed a real estate education course and an exam, showing they’re knowledgeable about the real estate law and process. Successful real estate agents also require a deep understanding of their local real estate market. Also, the experience they have can be invaluable for you as a buyer. An excellent real estate agent will be able to listen to your needs and answer your questions. This can help you determine the best option out of any potential homes you’re considering.
Work On Your Behalf
Buying a home can be stressful, but an experienced real estate agent can help you smoothly navigate the sales process. When it comes to negotiating the optimal price on your dream home, it’s crucial to understand how the real estate process works. A buyers agent negotiates on your behalf directly with the seller or the listing agent to ensure that you secure the best deal possible.
Working with a buyers agent is especially important if the seller has a listing agent. This is because the listing agent has a goal to secure the highest sales price possible. However, having your own agent working on your behalf is one of the best ways to ensure that you don’t pay over market value for your new home.
Avoid Costly Mistakes
There are plenty of expensive mistakes a buyer can make when purchasing real estate. Common buyer problems include making an initial offer that is higher than the value of the home, and not adequately negotiating credit for needed repairs.
Working alongside a buyers agent can help make sure that you don’t pay too much for your new home and don’t take on a costly renovation job. In addition, buyer’s agents can help you to navigate your real estate contract inspection period. The inspection period allows you to find and negotiate for credit if any previously unknown defects are found.
Buyer’s Agent May Require A Contract
Did you know that some buyers agents require their clients to sign an exclusive buyers contract? Although the particulars vary by state, exclusive buyers contracts can be common. They effectively lock the buyer into a commission contract with one agent — regardless of who finds them their new home. It’s crucial not to sign any contract that make you responsible for an agent’s commission — unless you agree and understand.
Many agents use buyer’s contracts because it gives them peace of mind that you’ll work with them exclusively. It also ensures that they will receive any compensation they’re due for their work. A buyer’s agreement should clearly state the agent’s responsibilities and duties they will perform for you during your working relationship.
You Pay the Buyer’s Agents Commission
When homeowners use a listing agent to sell their home, they decide on the sales commission that will be offered to the agents in the transaction — this includes the buying agent’s commission too. Both agents split the total sales commission and it is paid as part of the sellers closing costs.
Although this means that buyers pay nothing upfront for representation, the commission cost is considered when setting the sales price. Put simply, both the listing agent and the buying agent’s commission is often rolled into the final sales price — transferring the expense on to the buyer.
If you’re thinking about buying a home, consider interviewing local real estate agents. Finding a buyers agent who understands the local market can save you a lot of time and money in the long term.