Though the term buyer’s agent is not new in the real estate industry, most home buyers don’t clearly understand why it is essential to work with one. Of course, many people are familiar with the role of a buyer’s agent in helping them purchase a property. But, not all have the full knowledge of the obligations of the home buying pros and how they operate.
You need a buyer’s agent’s expertise, experience, and resourcefulness to make your home-buying process less hectic. But, it’s crucial to comprehend the purpose of hiring an agent before deciding to visit.
Sometimes, you don’t necessarily involve a buyer’s agent to purchase your home. And sometimes, working with an agent can be your best solution. Some buyer’s agents even double as listing agents, trying to maximize profits at the clients’ expense.
Lack of knowledge of the exclusive responsibilities of buyer’s agents might put you at a disadvantage when dealing with them. For instance, you don’t need to pay a dime to a buyer’s agent. Since you are paying for the property, the seller would pay the agent for the sales.
Now, how would you feel to have paid for a service that is meant to be free? That’s why you need to ask the essential questions before you run to a buyer’s agent. We have helped you compile some of the most frequently asked questions about buyer’s agents to save you from the headache. Click here to read about 6 Essential Questions to Ask When Choosing the Right Buyer’s Agent.
These questions will give you a comprehensive understanding of what a typical buyer’s agent should and shouldn’t do on your behalf. Having read through the answers provided by experienced realtors, you can confidently approach an agent.
Most FAQs about Buyers Agent
Do I need a buyer’s agent?
Before you attempt to purchase a property, it is essential first to determine whether you should go through a buyer’s agent or not. If this question has been in your mind, here is your answer.
Yes, allowing a buyer’s agent to help find your desired property is always advisable. First, they make the entire process less stressful. You wouldn’t have to do anything until the time for inspection.
Before the inspection, they would have gone wide in searching for the right property according to your preferred specifications, location, and budget. After that, they would have conducted the necessary interview to know the condition of the property to avoid some unplanned expenses that may later surface. Read about Buyer’s agent Duties visiting
Every listing agent’s aim is to ensure they get the highest profits. So, it is essential to have a professional agent to work in your interest. They will make an offer that benefits you the most and ensure the purchase falls within your budget. A buyer’s agent will also attend showings with you, provide helpful advice during an inspection and help you draft the contract once you have agreed to purchase.
Who pays the buyer’s agent, and how much do they get?
It is not your obligation as a buyer to pay a buyer agent. Typically they get their commission from the sales. In simpler words, the buyer’s agent would wait until the buying process becomes successful. When the buyer pays, both the listing and the buyer’s agent will deduct a commission from the sales price and share it equally. In most cases, both agents share 6% of the sales.
In rare cases, some buyer’s agents may ask for an upfront fee from the buyer to make up for the legwork and research. Regarding this payment structure, the agent would propose an agreement stating a fixed commission rate that the buyer would pay before the agent moves an inch.
Why do some buyers refuse to work with buyer’s agents?
Earlier in this article, we mentioned that some buying processes might not necessarily involve the service of a buyer’s agent. So, what could ever warrant that? Pay attention to the answer.
It is true that buyers’ agents are rich in market knowledge and can get you the best deal possible. But, a buyer can choose to ignore all that if there’s insufficient money. Although the buyer’s agent doesn’t take more than 6% commission from the sales price, you can dodge it if you don’t hire an agent.
This advice is only for those looking for ways to cut down expenses. But it is not professionally encouraged. You would gain a lot working with a buyer’s agent than avoiding paying commissions.
At what point should I hire a buyer’s agent?
Most people don’t ask this question before visiting a buyer’s agent. Still, it’s one of the most important. Not everyone knows what they had to do before they involved a buyer’s agent. That’s why they pay more than necessary.
You should have researched the home you want to buy before involving an agent. That way, you will spend less time and money. Since most agents will bill you for helping out to find listings, you can cut down expenses if you cover the initial process.
Can a buyer contact a listing agent directly?
It is best f a buyer’s agent negotiates with a listing agent. The reason is that the listing agent can take advantage of your ignorance to overbill you or give you an offer that will only benefit him and the seller without caring about your comfort.
Can a buyer’s agent also work as a listing agent?
No! And, you must be careful not to deal with any buyer’s agent that wants to double as a listing agent. That kind of individual is likely out only for the money and wouldn’t care about your comfort. It would also cause conflict in the process of the home buying process.
On a final note
It’s also part of the responsibilities of a buyer’s agent to prepare an in-house market valuation for you on the home you want to buy. That will give you a clear understanding of the house’s market value and a clue on what to make as an offer.
When you meet with the buyer’s agent, you can ask as many questions as possible. Nevertheless, the above answers guide you on how to relate with buyers and listing agents to get the best result.