5 Reasons Buyers Should Use a Real Estate Agent

#1 – Low of Representation

Typically, a Buyer’s Agent is paid through the offer of compensation by a seller. I know that may sounds strange to some of you but when a homeowner decides to list their home, they negotiate and understand that the commission fee they pay includes an offer of compensation to the buyers agent.

The commission is split, per the listing contract instructions and part of it typically goes to a Buyer’s Agent for bringing a buyer to the closing table.

There are some situations (like with for sale by owners, for instance) where the seller may not be offering a Buyer’s Agent commission. In those situations, buyers may pay for their own representation.

If a home is listed on the local MLS Service, the seller is typically offering to pay compensation of the buyers representation.

Again, all of this is completely negotiable and up to the agreement between the seller and the listing agent/brokerage.

Be sure you talk with your agent to see with the terms of service are!

#2 – Your Best Interests

When you work with a REALTOR, they must adhere to the Code of Ethics and are bound by the fiduciary duty to you. This duty includes:

• Loyalty – They are obligated to act in your best interests, above all others
• Confidentiality – They are required to keep confidential any information that might weaken your bargaining position and any information you don’t want disclosed at all!
• Disclosure – They have to disclose to you all relevant and material information that they know or acquire.
• Obedience – An agent is obligated to obey, promptly and efficiently, all lawful instructions from the client.
• Reasonable Care and Diligence – This means using their expertise and knowledge to aid the buyer in finding out any information that would be prudent to purchasing a home.
• Accounting – Your agent must account for all money or property belonging to you/your affairs and safeguard and account for it, if applicable.

#3 – Knowledge & Experience on Your Side

As mentioned in the fiduciary duties section, a Buyer’s Agent will use their knowledge and experience to guide you in the purchase of you new home. This includes:

• Determining Fair Market Value – Agent’s have the resources to help you determine if a homes FMV matches its listing price. Agents don’t want their clients to overpay for a home! They will complete a Comparable Market Analysis to make sure if you decide to offer, you have the knowledge needed to feel good about your decision.
• Keeping the Transaction on Track – An agent has the knowledge of a working real estate transaction. They know when to do what, keep track of contractual deadlines and can help decipher real estate language and contracts so you have all the information needed to make decisions.

Buying a home can be scary, complicated and frustrating. Buyers should use a real estate agent so they can benefit from these and many more attributes so the process is as stress-free as possible.

#4 – Negotiating Experience

There are multiple points of negotiations inside a real estate transaction. Buyer’s should use a real estate agent and their experience to assist them throughout the transactions.

Different possible negotiation points include the offer, personal property, possession, inspection and sometimes, appraisal negotiations.

Most people only buy 2 to 3 homes in their lifetime. Take advantage of someone who makes a living at negotiation. You deserve the best!

#5 – Resources that Help You

A Buyer’s Agent has resources that their disposal that can help you in a lot of different areas of the transaction.

They have built relationships with many vendors that you get the benefit of, such as:

• Lenders – You definitely need a Pre-Approval letter from a lender. Agents have relationships with lots of lenders and can supply you with trusted options to choose from.
• Title Companies – Again, they have probably worked with the majority of local title companies and can help choose one to fit your needs.
• Inspectors – Whole House, Pest, Well, Septic – you name it and agents have vendor recommendations to assist you!

Showings

REALTORS who belong to the local MLS have a showing service they use to make appointments to see the homes you are interested in. It’s an easy, no hassle experience for their clients!

Research Resources

Researching homes, neighborhoods, cities and towns is a lot easier with an agent by your side. Most of the time, they have first hand experience they can relay to you so you can make the best, informed decision for you/your family.

As well, they are in and out of homes in the area you looking all the time. They can share first hand knowledge of homes they have seen with you!

Buyers should use a real estate agent because these resources make you smarter, more savvy than other buyers out there.