What is the Advantage to Having a Buyer’s Agent?
Buying a home is one of the largest commitments individuals may take on during their lives (outside of running a business, marriage and/or having children). Not everyone has the same amount of knowledge or experience in buying a home, owning one, or maintaining one. As a buyer’s agent, our responsibility is to navigate buyers successfully through that process.
In Real Estate, licensed agents perform many tasks, from showing homes, selling them, representing sellers, to drafting and handling legally binding contractual paperwork. Agents handle many more aspects behind the scenes that most homeowners do not realize.
A buyer’s agent does a lot of the leg work in a sale transaction. From running around town with a buyer to show properties, to negotiating with the seller on an offer to purchase and bringing the sale to closing.
Here are several reasons to hire a Buyer’s Agent in the Real Estate Process
1. Agent Fees
In most cases, hiring a buyer’s agent to represent you won’t cost you anything extra. The way a home sale is typically structured when a home is listed, the commission on selling the home offers a percentage to a broker and agent that finds a successful buyer. There may be rare instances that may deviate a bit, but it’s fairly uncommon.
2. Fair Market Value
A good agent will study the market. We have access to a lot of data, giving us an opportunity to put pretty accurate estimates on the market value of a property. Expires listings, new listings, sold properties, location, square footage, amenities, and other factors go into our reports. In our industry, we call it a CMA, or Comparative Market Analysis.
3. Buyer’s Agent is in your corner
When an agent is working for you, he or she will have your best interests in mind. A good agent will help you buy the property that is right for you. Not the house that the agent may want you to buy. Did you know that if you go to an open house, the agent on duty showing it is working for the seller? If you ask them to write up an offer to purchase, that agent’s priority is representing the seller. The agent will be negotiating against you, the buyer, so bring your own agent into the transaction.
4. Time really is of the Essence
Agents have access to the Multiple Listing Service, also known as the MLS. In addition to getting access to new properties immediately when posted on the MLS, they are also able to network well with many other agents. Getting that information quickly in a competitive market can make a difference. It could be just what gets a buyer to securing a showing and opportunity to buy the right home, before it is already snagged up by someone else with an accepted or pending offer.
5. Ability to Spot Red Flags
An experienced agent will be able to spot many things that need to be put into consideration before making any offers, that maybe a first-time home buyer may not think about. This will help strategize how to draft the offer, given the conditions or circumstances.
Sometimes a home transaction can be a chess game with the seller. An agent may have a good strategy in dealing with negotiations. Not every transaction is the same, and many will have a unique set of circumstances. But being able to adapt to what’s needed at the moment will protect you, the buyer, from possibly making a wrong step in the process.
7. Paperwork – There’s a lot of it
Home purchase contracts can be 10 or more pages. Plus, there may be contingencies that need to be addressed, from inspections to financing. Other documentation may need to be handled, such as an addendum for lead based paint, for example.
8. It’s a legally Binding Contract
When an offer to purchase is accepted, it’s legally binding. Meaning that a buyer just can’t “change their mind,” without repercussions. There are many timeline dates that need to be met to bring the transaction to closing. A failure in just one element of the contract could possibly end up as a suit in breach where the other party is asking to be compensated for damages.
When it’s time to start looking at buying a home, contact a licensed real estate agent and have someone knowledgeable in the industry doing the work for you. Would you attempt to DIY your own dental work, or would you choose to go to a dentist? The decision is ultimately yours, but hiring an industry professional is a smart decision.
There are many other topics to discuss heading into this year, so feel free to contact me and let’s talk about selling or buying a home. Start your search right here on my site.