Getting a Buyer’s Agent: Advantages and Disadvantages

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According to the National Association of Realtors, 905 of those who purchase a home do so with the assistance of a real estate agent. Different agents represent different interests – for example, a listing agent is not the same as a buyer’s agent.

Viewings of homes may be arranged by both listing and buyer’s agents, but while the former represents the vendor, the latter is devoted to the purchaser’s interests, during the sale process. The buyer’s agent tries to bargain for the best possible deal for the purchaser and also helps him or her with the necessary documentation. A buyer’s agent can help you avoid pitfalls that could ruin a deal.

Sole or Dual Representative?

It is possible for a single agent to represent the interests of both vendor and purchase of a property. Recently however it has become more common for an agent to be either a listing or a buyer’s agent. So the exclusive buyer’s agent has emerged – he or she will not list houses for sale but will direct efforts towards finding the ideal home for a buyer.

If you wish you can hire a dual agent, but one who will exclusively concern himself with your interests is definitely preferable. Be wary if a dual representative shows you a listed property that has been put on the market by agent’s own client; there is sure to be a conflict of interest in such a case.

Who Pays the Agent’s Commission?

Although in theory the agent’s commission of between 2.25% and 3.5% is paid by the seller of the property, in actual practice the commission is often added to the price the buyer pays since the seller takes the agent’s commission into consideration when he or she is deciding on a price for the property. So despite the fact that the commission is given to the agent by the seller, it is frequently the buyer who really bears this cost.

How Do You Find a Buyer’s Agent?

Ask people you know to suggest buyer’s agents whose services they have used. A good reputation is essential and it is a good idea to have a recommendation from a friend. You can also go online to look for buyer’s agents and to check their credentials. You can short-list a few names, and give the potential agents a call or arrange to meet them.

When you do meet with a likely buyer’s agent, you should have some queries ready:

 Are you a resident of the neighbourhood?

How long have you lived here? It is wise to find a buyer’s agent who is familiar with the locality you are considering and knows about market trends in the area, local faculties, possible development plans for the are and so on.

 How many homes have you personally found for buyers in the recent past?
 Would you be able to recommend a good mortgage broker?

A buyer’s agent’s help in finding an honest, efficient mortgage broker will be very useful. Try and find out if your potential buyer’s agent has a humorous side.

After making up your mind and deciding to go with a particular buyer’s agent, you will generally have to put your signature to a Buyer's Broker Agreement with a particular time frame mentioned – say, 12 to 24 weeks. Do ensure that you read the contract thoroughly and that the contract allows either party to terminate the deal without penalties.

Regardless of whether or not you hire a buyer’s agent – you may well decide that this is something you can handle yourself – to help you find a home to buy, remember that it is your opinion and decision that count, so trust your gut feelings rather than blindly following what your buyer’s agent says.