If you’re in the market for a new home you might be asking yourself “should I use a real estate agent?” As an agent who works with both buyers and sellers, here’s a little perspective on why I think it’s important that buyers work with a separate buyer’s agent.
It doesn’t cost you anything
If you frequent many popular online real estate forums you’ll undoubtedly run across a buyer mentioning how much money they plan to save by not using an agent. A buyer does not save any money by foregoing a buyer’s agent. In fact, they might wind up spending more money without someone with their best interests at heart negotiating the deal for them.
When you hire a buyer’s agent, it doesn’t cost you anything. The seller covers the cost of the agent’s fee. Here’s how it works:
When a listing agent is hired to sell a property, they negotiate a commission rate, which is often 5-6% of the home’s sell price. If the agent represents both the buyer and the seller, they are entitled to the entire fee. If, however, another agent brings a buyer to the table, the listing agent splits the negotiated commission with the buyer’s agent as payment for making the deal happen. The seller pays the same commission whether the buyer has an agent or not. Why not hire someone focused solely on your best interest?
You need an advocate dedicated to your interests
As a buyer’s agent, my job is to negotiate a great deal for my clients. This can mean anything from getting the best price for the property to negotiating home repairs or a snazzy home owner’s warranty.
As a listing agent, my job is to get the best possible deal for my seller – which typically equates to finding the deal offering most money and the best terms. Therein lies the rub. While it is perfectly legal for an agent to represent both the buyer and seller in a transaction, it can be challenging to prioritize competing interests. Having your own agent means that you have someone looking out solely for you and what’s in your best interest as a buyer.
Agents have access to a number of additional resources
If you’re not working with a buyer’s agent, you might be missing out on properties that would have been perfect for you. While you may have access to resources such as Zillow, Realtor.com or Redfin, agents have access to the Multiple Listing Service (MLS), which houses the most up-to-date information on homes currently available on the market. The MLS also provides agents with key information on the property that might not be listed elsewhere and puts us in touch with the listing agent so that we can quickly and easily submit an offer on your behalf.
Not only do we have access to tools and resources that buyers going it alone won’t have, agents also have an extensive network of other agents. A strong relationship can be the difference between a listing agent going to bat for our client’s offer and the offer being just one of many in the pile.
The right agent understands the market and can help you make sense of it
As an agent, it’s our job to stay up-to-date on the latest listings in the area. A good buyer’s agent will send you options that are specific to what you discussed and even keep an eye out for homes outside of your initial wish list that might be a good fit based on the preferences they’ve noticed while you’ve been out home shopping.
Additionally, because agents are reviewing market changes daily, they can advise you on whether the home you’re interested in is worth the asking price, how to come up with a price for your offer and strategies to close the deal, based on how the market is performing.
