Why should we hire a buyer’s agent? When we can just find what we want on the internet and save the commission? This is from a resent conversation with a prospective couple that were looking at one of my listings. This made me think about why a prospective buyer would or should hire a buyers agent to represent them.
Unless the house you are planning on buying is for sale by owner (FSBO) there most likely will be a commission earned and paid on the sale. I have even had FSBO’s agree to pay a commission on the sale of their home.
First let’s talk about where you are looking for these homes for sale. The internet. We consider those sites internet eye candy for real estate or as most in our industry call them real estate porn sites. They tease you with their incorrect calculation of the market value of what you are looking for and giving you the buyer a false sense of what you should be getting for your money. Second they are not up to date on the current market hence you spend your time hunting down that perfect house only to have someone like me tell you “so sorry that house was sold 2 Months ago” or you or your agent discovers that the house you want to see is not in the school district that you want. A good agent will get to the core of what you are looking for and have an understanding of what that is and only show you properties that fit your needs. A buyers agent can save you time, money and emotional energy. Which brings me to my inspiration for this article. The nice prospective buyers who came by my listing asking me why they should use an agent. In my conversation with them I learned that they did not have financing in order, had a home to sell, that they had been looking for Months without success in finding something that worked for them in the school district they desired. My listing was not a good fit for them as it has a steep backyard. A good agent would have weeded out my listing based on their need for a level back yard.
Now why should you hire a buyer’s agent? A buyer’s agent is your representative. Buyers agents have a fiduciary duty to you and you only. They work for you and are only interested in what is to your benefit and what will protect and see you through from finding that dream home, negotiating the best price that will lead to a successful close. A lot can go wrong in this process. There are deadlines that have to be met to keep the deal going. And who do you think the sellers broker is looking out for? I can tell you for sure it is not you the buyer!
Now let’s talk about all that commission you think you’ll be saving by not using the services of a buyers agent. Who decides the commission amount? The buyer’s agent? The seller’s agent? Answer: The seller. Surprised? The seller in effect pays your buyer’s agent to negotiate on your behalf (the buyer.) The seller agrees to pay a percentage to the selling broker to get his house on the market. He is not making a deal with you the future buyer. The agreement is with his selling broker. Then the selling broker decides what he will pay a buyer’s broker out of the agreed amount. What you the self-represented buyer may not understand is that the seller agreed to pay the entire commission to the listing broker. If the you the buyer represent yourself in a sale, the listing broker is entitled to the entire commission and the seller cannot just reduce the commission because you the buyer is not represented. The sellers brokerage keeps the whole amount. There is no agreement with you the buyer.
So now that you have a better understanding of how commission is earned and paid why wouldn’t you hire your own representation and use the expertise of an agent when buying your future home? The service and experience of a great agent can be priceless.
I love my buyers and so enjoy helping them find their dream home. “Giving exceptional service to exceptional clients”, has always been my goal in real estate. I look forward to serving you in your next home purchase!
"Giving exceptional service to exceptional clients!"
Keller Williams North Atlanta