Are you in the market to purchase a home? As you embark on this exciting journey, it’s crucial to consider the role of a buyer’s agent. These professionals are real estate experts who work on your behalf to help you find and negotiate the best possible deal. By uncovering the benefits and weighing them against potential drawbacks, you’ll gain valuable insights into a buyer’s agent for your next home purchase.
What Is a Buyer’s Agent?
A buyer’s agent is a licensed real estate professional who represents the interests of the homebuyer during the purchasing process. Unlike a seller’s agent, who works on behalf of the seller, a buyer’s agent is solely focused on advocating for the buyer’s needs and preferences. They have a deep understanding of the local real estate market, possess expert negotiation skills, and are well-versed in the intricacies of the home-buying process.
What Does a Buyer’s Agent Do?
A buyer’s agent assists with various tasks for the home buyer. They are summarised below:
- Assess your preferences and requirements for a home.
- Aid in searching for properties within your budget.
- Arrange property visits and tours.
- Review inspection reports together.
- Negotiate with the seller on your behalf for the best price.
- Handle the majority of the home offer paperwork.
- Ensure deadlines are met during the escrow process.
- Assist with the loan application, if needed.
- Streamline the home-buying experience and support you throughout the process.
How Does a Buyer’s Agent Get Paid?
Buyer’s agents are compensated by the home seller, as a part of the initial listing agreement with the seller’s agent.
Roughly half of the commission is allocated to the listing agent who represents the seller, while the other half is designated for the buyer’s agent who assists in finding a buyer for the property. Therefore, you can enjoy the benefits of a buyer’s agent’s services without incurring any additional costs.
Real-Life Benefit Examples of Using a Buyer’s Agent
Besides not costing you a dime, having a buyer’s agent can save you substantial money when making the biggest purchase of your life. A good buyer’s agent has the experience to ensure that you don’t end up with a home that will cost significantly more than you expect.
“A young first-time home buyer fell in love with a home in Lafayette, California, a charming little town about 30 minutes outside of San Francisco,” says Scott Orich, a real estate agent with Flyhomes in San Jose, California.
The inspection report showed the floors were not level – at some points by nearly 5 inches – and repair costs were estimated to be around $250,00 “or nearly 10 times what the seller’s report claimed.” A long construction process would also delay the family’s move-in date, Orich recalls.
“The seller’s agent wasn’t from the area, though, and the report wasn’t from a contractor I was familiar with either, so I insisted my clients bring in an independent structural engineer to get a second opinion,” Orich says.
The couple decided not to make an offer and instead found a similar property in the area that required only basic repairs to be move-in ready.
“Had they proceeded with an offer on the original property they could have very easily found themselves with a home they’d be unable to sell at market price,” says Orich. “Moreover, they did a great service to prospective future buyers of that property because, in California, the law requires that all commissioned reports be disclosed to anyone interested in purchasing a particular home.”
How to Choose a Buyer’s Agent
When selecting a buyer’s agent to assist you in your home-buying journey, there are a few key factors to consider. First and foremost, look for an agent who has experience and expertise in the local real estate market. They should possess a deep understanding of the neighborhoods you are interested in and be familiar with the current market conditions. It is also important to find an agent who is a good communicator and listener, as they will need to understand your specific needs and preferences.
Additionally, consider their availability and responsiveness, as prompt communication is crucial during the home search and negotiation process. Seek out an agent who is a skilled negotiator and has a proven track record of successfully closing deals. Lastly, don’t hesitate to ask for references or read reviews from past clients to gauge their reputation and level of satisfaction. By carefully evaluating these factors, you can choose a buyer’s well-equipped agent to guide you through the home-buying process and help you find your dream home.
