Purchasing a home can be a very exciting time, whether it is your first time, or even if you have purchased several times before. Whether it is finding a lender, navigating inspections and appraisals, or reviewing contracts, a mistake can be extremely costly.
When a home is listed for sale, it will usually be represented by a real estate agent, commonly referred to as the listing agent. The listing agent works on behalf of the seller and their job is to look out for the sellers’ best interests.
As a buyer, it is very common to hire a buyer’s agent. Hiring a buyer’s agent ensures that you have professional representation and there is someone looking out for your best interests.
Here’s 10 reasons why it’s important to hire a buyer’s agent to represent you in a real estate transaction.
1. Hiring a buyer’s agent is free to you
That’s right, FREE. A commission is typically paid by the seller, who will cover both the listing agents and buyer’s agents’ commission. This means that to be represented by a professional real estate agent with buying and selling expertise, it costs you nothing.
2. A buyer’s agent has a fiduciary responsibility to you
When you hire a buyer’s agent, they will have you sign a disclosure that will state that they are working for you and owe you certain fiduciary duties. They will represent you and your best interests in the transaction. Remember that the listing agent has a duty to represent the seller, not the buyer. So, if you call the listing agent, keep in mind that they do not work for you. It is wise to have your own representation.
3. A buyer’s agent understands the local market
A buyer’s agent works in the local real estate market every day. Studying the market trends, showing homes, writing contracts, negotiating, and building relationships with other agents. They have a firm grasp of what the local market is doing and can advise you on what you need to know. The agent is there to help you determine value of properties and offer their opinion on price based on the statistics. Realtors have access to information that the public does not. You can leverage this knowledge to make sure you are making a sound decision.
4. The buyer’s agent knows what to look for when viewing homes
Real estate agents are looking at dozens of homes every week and they have completed many transactions, with no two being the same. When viewing a home a with a client, the agent knows what to look for as far as potential inspection concerns, appraisal issues, potential mold, evidence of pests, leaks, and more. Remember the agent represents you and is looking out for your interests. If an agent sees something that is a red flag, they may recommend that you have further investigation done.
5. A buyer’s agent can help secure financing and work with lender
Buyers agents work with both buyers and lenders nearly every day. They usually have preferred lenders that they work with and can testify to the quality of their work. Having a buyers agent is a major asset in that they can point you in the direction of top lenders in the area. Agents know the ins and outs of the different mortgage programs and they maintain great relationships with lenders, which helps the transaction move along faster.
6. Buyer agents know how to negotiate
Let’s face it, many of the conversations that need to be had during a transaction can be uncomfortable. That is why you should hire a buyer’s agent. They are used to negotiating and asking the tough questions. A good negotiator knows how to achieve an outcome that is desirable for all parties. Agents are very experienced in negotiating transactions, from price, all the way to minor inspection items. Additionally, many agents will have great relationships with their fellow agents, which makes the transaction smoother.
7. A buyer’s agent knows how to write contracts
If you haven’t completed a real estate purchase agreement before, or even if you have, they can often seem extremely complicated. There are many details that if overlooked can result in major costs or put you at a disadvantage in the contract. Specifically, contingencies and deadlines are where you can get in trouble. A buyer’s agent will also know how to write and present a contract so that it looks favorable to the seller and has a higher chance of getting accepted.
8. Buyers agents can get you access to the property
A buyer’s agent has the ability to learn about homes that are listed the second they hit the MLS. In addition, as agents we often learn about listings before they are active, and we hear about off-market opportunities. A buyer’s agent can get you access to the property when you need it most. In a hot sellers market, homes may see multiple showings as soon as they list, so it is important to get in the home quickly. You won’t be able to access the property without being accompanied by a licensed agent.
9. The buyers agent has access to professionals that you may need
Real estate agents have a large network of professionals that we rely on for different needs. For example, a buyer’s agent can connect you with a loan officer, a title company, home inspectors, and specialty contractors such as HVAC, plumbers, and electricians. The value to you as the buyer is that the agent likely has a good relationship with any individuals they recommend to you.
10. Your buyer’s agent can be your emotional filter
The home buying process can get very emotional as it is a major transaction and life decision. By hiring a buyer’s agent, you aren’t just hiring them to help you find a home. A good buyer’s agent will act as a professional voice of reason at all points during the process. Since the agent isn’t emotionally attached to the property, they can advise on matters and prevent you from making rash or emotionally charged decisions. As the buyer, you will make all final decisions, however the agent can advise you on the pros and cons of different situations.
If you are a buyer or thinking about buying and would like to learn more about how we represent our clients, contact us at Wesley & Co. today at 810-623-4603.
