Buyer's agents only need to open a few doors and fill out some documents to earn a hefty commission. There is so much information online nowadays!
I beg to differ. These are attention-grabbing headlines, and also a myth.
*** Settle in with a beverage of choice, this is going to be a long one. ***
I'd argue that there is too much information online, or it's inaccurate, or conflicting, or outdated, or missing crucial pieces.
Just research any property on different real estate websites and you'll get value estimates that can differ by tens of thousands of dollars. Why that is, is a topic for a different blog.
Would you, the seller, entertain an offer from an unrepresented buyer who just picked the lowest of all, or would you rather negotiate with the buyer whose agent pulled the most relevant comps from the Multiple Listing Service, compared location and upgrades and educated their buyer about the true value of your home - which, if your agent did their homework, is around or above your list price?
A dedicated buyer's agent invests (a lot of) time and effort upfront - often over several months - before a contract is ratified.
Before I show houses to a buyer, I schedule several consultations. During these consultations, I go over my role as an ABR® (Accredited Buyer's Representative), find out about the wants and needs the buyer has, get a sense of their financial readiness, and either come up with a gameplan to improve said readiness, or refer to one of my trusted lenders. I'll verify with the loan officer that all information has been reviewed and we discuss different loan scenarios, how much a condo would lower purchasing power compared to a single-family home, and the time it will take to close. The best lenders will also do all possible legwork upfront to avoid surprises later.
Next, my buyer client and I will review market conditions and set expectations. We'll identify the neighborhoods that best suit my buyer's needs and budget. I'll also send them a set of offer docs for review and then go over it all to make sure the buyer has a clear understanding about their responsibilities, deadlines, and contingency options before writing their first offer.
Maryland has relatively small counties, all of which come with their own set of disclosure requirements and laws. While my main service area is between DC and BMore, I have helped buyers purchase in Frederick, Montgomery, Carroll, Howard, Baltimore, Anne Arundel, Prince George's, and Queen Anne's counties. Many buyers will also consider purchasing in two or more counties which means explaining the different addenda and contract options and requirements.
Only after my buyer has their preapproval in hand and has been educated about the process and documents required will I start "opening doors". As mentioned above, it can take weeks, months, or sometimes even years until we get to this point. A buyer may not be ready when they first start thinking about buying, life events can take precedence, or we have to deal with market conditions that make buying a difficult task.
FYI, I have not been paid at all for my time and efforts at this point. I get paid once I sell *your* house and, in a combined effort with the listing agent, lender, appraiser, title company, inspectors, and insurance agents, facilitate a successful closing.
I'd like to argue that I am doing just that, I am selling your listing. When you get an offer from my buyer then it is because we've identified your house as one of the best choices for my buyer. We've compared it to others on the market and investigated the neighborhood. We may have already done a pre-offer inspection to make their offer more attractive to you. My buyer is aware of any upgrades they' may have to make in the future, or which appliances are nearing the end of their lifespan. We've reviewed your required disclosures, pulled county records, and poured over the comps. I've touched base with the listing agent to find out what is most important to you. Can we accommodate a rent-back? Do you have a preferred closing date? Do you need to treat it as a 1031 exchange?
When my buyers' offer is presented to you, the seller, you can rest assured that they are as educated as possible and in the best financial position to close on the purchase. I don't like surprises, or contracts falling apart, or any ambiguity - and neither should you.
Sure, occasionally we get lucky with a ready, willing, and able buyer who just sort of falls out of the sky and has identified a property they want to buy. More often than not, however, that is simply not the case. These buyers are either repeat buyers and we've done the work in years past, or buyers who were referred to us because we've done the work with somebody else in years past. More often than not, it takes time, and sometimes even 28 home tours and 7 offers.
And, yes, I do have to mention that not all agents have the same work ethic, years of experience, knowledge, tenacity, and passion to see you succeed. That's why you should research prospective agents, ask friends or family about their experience, and ask qualifying questions. When it comes to choosing the right-for-you agent, you have a choice, whether you are buying or selling.
When I represent sellers in Maryland, I cannot - nor would I want to - also represent a buyer at the same time. Dual Agency is limited to the brokerage, meaning, the broker can designate one agent to represent the seller and another to represent the buyer. It is a very fine line to navigate, however. I very much believe that it is in the best interest of all clients to have a designated - and dedicated - REALTOR® representing their respective interests while cooperating to drive the transaction toward a successful settlement.
A buyer who is well-prepared and well-qualified benefits both parties, buyer and seller, and eliminates potential contract hurdles from the get-go. A smooth transaction is what we strive for, with as little stress as possible for all involved and on-time settlements. Let's not underestimate and undervalue the role the buyer's agent played in doing just that.
This is my point of view as a REALTOR® who is passionate about this industry and the services and value we provide to consumers. I enjoy and thrive in both roles, as a listing and as a buyer's agent - but never in the same transaction. Licensed since 2004, I have plenty of stories from the Real Estate trenches and will be sharing a few over the coming weeks that show just how valuable buyer representation is. Stay tuned.
#2 The value of a buyer's agent: the forgotten storage unit.
#3 The value of a buyer's agent: the pet policy dilemma. Exhausting all options.
#5 The value of a the right buyer's agent: presenting a clean offer. I wrote this post in February of 2023 but it fits right in with this series.
#7 The value of a buyer's agent? But buying a house is so easy!
Comments(12)