What is a Buyer’s Agent?
Many people think of buyer’s agent as the person who opens a door for them when they are looking to purchase a home, but their services are much more than that. A buyer's agent is a real estate professional who works on behalf of the homebuyer to help them find and purchase a property - in addition to helping with the search and selection process, a buyer's agent will act as your fiduciary to act on your behalf for negotiations, inspections, drafting and reviewing contracts, and coordinating the closing process. They will be the local expert to provide valuable insights on the real estate market and help a buyer to navigate any potential issues that may arise during the transaction. Overall, a buyer's agent can be an invaluable resource for anyone looking to purchase a home.
When you use a buyer's agent, you are hiring an agent who will represent your interests and work on your behalf to help you find and purchase the right property. This is in contrast to the listing agent, who is representing the seller and working to get the best deal for the seller.
It's important to understand that a listing agent is not able to represent both the buyer and the seller in the same transaction. This is because there is a potential conflict of interest, as the listing agent's loyalty is to the seller, and they are working to get the best price and terms for the seller. By using a separate buyer's agent, you can have someone who is representing your interests and helping you navigate the process of buying a home.
It's also worth noting that, in some cases, a listing agent may be able to offer a dual agency agreement, where they represent both the buyer and the seller. However, this is generally not recommended as it can create a potential conflict of interest and may not be in the best interests of either party.
Who Pays for the Services of a Buyer’s Agent?
In most cases, a buyer's agent is paid a commission by the seller of the property. The commission is typically a percentage of the sale price of the home and is negotiated as part of the listing agreement between the seller and the listing agent. The listing agent then typically splits the commission with the buyer's agent, with the split being negotiated in advance between the two agents.
It's important to note that the buyer does not typically pay the commission directly. Instead, the commission is paid by the seller as part of the overall cost of selling the property. However, it's always a good idea to clarify with your buyer's agent how they will be compensated and whether there are any additional fees or costs that you will be responsible for.
In December of 2020, I was helping a young family to find their first home. They found a house they absolutely fell in love with in Eagle Mountain, Utah. The inspection report came back with a few repairs that were estimated at just over $8,000. These issues were not listed on the Seller’s Disclosures, and I was able to negotiate for these repairs to be completed as well as another $10,000 in a reduction of the sales price of the home. Had they proceeded with the purchase without these negotiations, they would have had to come out of pocket to make the repairs and had a slightly higher mortgage payment. This is just a small example of how a buyer’s agent’s knowledge of how to handle the odd’s and in’s of a purchase can save a buyer time and money as well as offer additional peace of mind.
How Should You Choose a Buyer’s Agent?
There are a few key factors to consider when choosing a buyer's agent:
Experience: Look for an agent who has experience working with buyers and has a good track record of helping clients find and purchase the right properties.
Expertise: Choose an agent who has a strong knowledge of the local real estate market and is familiar with the types of properties you are interested in. Additionally, an agent should have a good reputation in the Realtor community. If they do not work well with other agents, they could end up sinking your chances of having an offer accepted.
Communication: It's important to work with an agent who is responsive and easy to communicate with. Look for an agent who is willing to listen to your needs and who keeps you informed throughout the process.
Professionalism: Choose an agent who is professional and who operates with integrity. Look for an agent who is a member of a professional organization, such as the National Association of Realtors.
It's also a good idea to get recommendations from friends, family, or other trusted sources, and to interview multiple agents to find the right fit. Don't be afraid to ask questions and make sure you feel comfortable working with the agent you choose.
For further reading, review my article titled Your Realtor Should be THE Secret to Your Success for a more in-depth explanation of the roles an agent plays as your representative in purchasing or selling your home.
Always know, I am here to help you listen and achieve your goals in buying or selling your home. Please feel free to reach out anytime at (801) 885-2558 or email me at brandonrwood19@gmail.com