When buying a home having your own buyer representation is crucial to getting the home you want at the price you need.
Did you know that most first-time homebuyers use the listing agent of the home they want to buy to facilitate the transaction? The problem with this is that that agent is working for the seller first, not the buyer. The seller is the number one client, which means that the listing agent is trying to get the most profit from the sale of the property and create negotiations in terms that benefit the seller, not necessarily the buyer.
If you genuinely want your interests, needs, and budget at the top of an agent’s priority list, and who doesn’t, it’s imperative to enlist the help of your own representation. A buyer’s agent works solely for the buyer helping them facilitate the transaction, work on their behalf, and negotiate for the buyer’s terms and price. One of the best things about a buyer’s agent is that they get paid from the commission of the sale of whichever property the buyer chooses, so there’s no partiality and the buyer pays the agent nothing out of pocket.
A buyer’s representation can actually save a buyer thousands of dollars. For instance, the seller and the listing agent don’t necessarily need to know all of the financial situation and confidential negotiation strategies implemented by the buyer and their agent. This puts the cards in the buyer’s hands rather than the seller and because sellers and their agents cannot see the entire process, they gives leverage to the buyer and allows for better negotiations.
Who pays for the buyer’s agent?
You’re probably thinking that someone is paying for their representation, right? Yes! But it won’t be the buyer. When a seller decides to sell their home, they negotiate a listing contract with a real estate agent. The commission to sell the property is typically split between a buyer’s agent and the listing agent. If the listing agent also brings the buyer and represents both parties, that agent receives the full percentage of commission, so you can see why listing agents want to be the buyer’s agent as well. However, while this is legal, it may not always be ethical. The commission that the seller decides upon will be split between the agent that brings the buyer, and the agent that lists and markets the property. A buyer’s agent will typically get paid regardless of which property the buyer chooses so there’s clearly no hidden agenda on the buyer’s agent’s behalf.
Would love to offer buyer representation services for our area the next time you purchase a home, condominium, townhouse, or vacant land. Contact us below to learn more.