Buyers looking to purchase a home often start the process themselves. Then when they see a house they like online or while out on a drive, they call the listing agent for information. While there is nothing wrong with that, keep in mind that the listing agent is capturing your name, phone and/or email in order to follow-up with you and convert you to a buyer. The listing agent is charging a fee to the seller which includes BOTH the listing side and buying side commissions. So if the listing agent can “double-dip” the listing, they could potentially double their commission on that one deal.
You might think, “well that’s ok, they are doing double the work!”. Not exactly, I am all for double-dipping. It’s one of the perks of listing the home and spending time and money on marketing. However, it isn’t exactly double the work. In fact, the listing agent (even if they work both sides) are ONLY REPRESENTING THE SELLER in most cases. They have a contract and fiduciary responsibility to get the most money and best deal for their client, the seller.
So here are all of the benefits of using a buyer’s agent when you purchase a home:
Buyer broker services generally are free to the buyer since we are paid by the listing office. If the listing office is collecting 5% or 6% or even 7% from the seller, they typically pay the buyer’s agent anywhere between 2.5% to 3.5%. You could argue that that fee is being included in the purchase price and the buyer could try to negotiate that saved commission for themselves, but most of the time that is not the case. The seller and the listing agent are also looking at those dollars as potential savings.
A buyer’s agent, who has been in the business for a while and has done many transactions, has seen a lot of different scenarios. That experience on how to deal with sellers, their agents, problematic home inspections, municipalities, etc will be incredibly useful to you. That experience totally removes the stress of how to handle unexpected situations.
This probably should be #1 because having a proxy that is legally required to represent your best interests is the best way to ensure that you get the best deal possible. It’s not always about price. Sometimes you need to negotiate terms like the closing date to match your plans. A good real estate agent will know how to handle occupancy rates (the amount a seller has to pay after the closing if they plan to live there for a set amount of town), seller concessions, appraisal issues and home inspection concerns.
A good buyer’s agent will help establish the timeline to close and what to expect along the way. This is probably the most helpful in reducing the stress associated with purchasing a home. Many buyers just don’t know what to expect and therefore are skeptical of everything in the process. That type of thinking causes unnecessary stress and that’s when mistakes happen. Your buyer’s agent is there to show you through the process as well as explain details of the entire transaction
I hope this helps you understand the value of your buyer’s agent and why it makes sense to take advantage of this free service to you. If you have any questions or comments, please feel free to reach out to me directly or visit my YouTube Channel for more tips and information!