Why You Need a Buyers Agent When Purchasing a Home

 

 

Key Takeaways

• A buyer’s agent is the one who helps someone who would like to purchase a home or property.
• A seller’s agent or a listing agent are the ones who help people who would like to sell their home or property
• A buyer’s agent helps you negotiate with the sellers.
• A buyer’s agent is paid by the buyers, not the sellers anymore, because of a $418 million antitrust settlement starting August 17, 2024.

If you are thinking of buying a new home and you don’t want to go through the hassle of negotiations, browsing homes through countless websites, and figuring out which one is perfect can be tough.

That’s where a buyer’s agent comes in. Think of them as your personal guide through the home-buying process. They will help you find homes depending on your preferences, such as budget, location, size of the house, bed and bath, and most of all, a fair deal.

If you are still not sure why you need one, then you might want to read more about this.

Buyer’s Agent vs. Listing Agent

First, it’s helpful to know who’s who in a real estate transaction.

• Buyer’s Agent: They work for you if you are the homebuyer. Their job is to help you find the right home, negotiate a price that reasonable, and will even guide you through the inspections, contracts (making sure you aren’t getting scammed), and closing process. Just let them know what you are looking for and they’re on it.
• Listing Agent: On the other side is the seller’s agent, and their goal is to get the best possible price for the seller. 

They also market the property, handle offers, and negotiate in you behalf as the seller of the property while you sit back and relax.

Their main objective if they are the buyer’s agent is to find the cheapest yet best house for you. If they are the seller’s agent, their goal is to look for the highest offer.

Overall, they make sure to keep both sides happy and keep things smooth.

Do I Really Need a Buyer’s Agent?

No, you don’t. You could go house hunting on your own even if you stumble upon a property listed by a real estate agent; the commission is paid by the seller of the property.

It may seem like an easy task, but that is not really the case. The reason why it is also important to hire a buyer’s agent is because they make a lot of difference in making your life easier.

A lot is happening behind the scenes, and you do not want to indulge yourself in it, such as understanding the contracts and managing negotiations.

Without a buyer’s agent, instead of saving thousands of dollars by just hunting houses yourself, without an expert, you may be at risk of spending way more than that because of a simple mistake they could have you avoided.

Here’s where a buyer’s agent makes a difference:

• They are experts in the market. They know the best areas and which areas to avoid.
• They have the negotiation skills you need. If you know you don’t have the necessary negotiation skills to command what you need.
• They will guide you through the compex jargon of the contract so you won't find yourself in the pitfalls of it.
• They will guide you with home inspections, which is crucial when choosing your next home.

 

How to Find a Buyer’s Agent

 

1. Ask Around: Ask people who recently bought or sold a property, or just ask your friends or family if they know someone.
2. Read Reviews: Search on Google ‘buyer’s agent’ or ‘real estate agent’ on Google and make sure to put the state or city you want. Do not forget to look at their reviews.
3. Interview a Few: Don’t settle for the first agent you meet. Have conversations with a few to compare their experience, knowledge, and approach.
4. Look for Local Expertise: Always prioritize the agents who have lived most of their lives in the city or state you plan on relocating.
5. Pay Attention to Communication: You want someone who’s easy to reach and keeps you updated. If an agent is slow to respond, that’s a red flag.

How Does a Buyer’s Agent Get Paid?

You and the agent will enter into a written compensation agreement before your agent will begin touring you with homes. Do not sign if you do not fully understand.

The agreement will comprise of: 

1. Amount or rate as compensation.
2. Compensation should be clearly defined, such as a set dollar amount, flat fee, percentage of the sale price, or hourly rate. It cannot be left open-ended or based on what the seller decides to offer.
3. The agent can't get paid more than what's agreed upon, from any source.
4. There should be a clear statement that broker fees and commissions can be negotiated and are not set by law.

 

Read more: Eaton Realty

Because Home Buying Isn’t Easy

Looking at listings online is fun, but making an offer, handling inspections, and dealing with surprises aren’t

Buying a home involves a lot of steps. You’ll need to work with lenders, inspectors, appraisers, and lawyers. And sometimes, unexpected problems come up, like a low appraisal or title issues.

A buyer’s agent helps catch these problems early. They’ll solve issues, negotiate, and make sure everything goes smoothly until you close on your home.

They Help You Find the Right Home

It’s easy to get overwhelmed by endless online listings. Some homes look picture-perfect in photos, but in reality? Not so much.

A buyer’s agent has the inside scoop on homes that fit your needs — including ones that might not even be listed yet. They’ll consider everything from neighborhood vibes and school districts to commute times and future property values.

Plus, they’ll be honest with you. If a house has hidden issues or seems overpriced, they’ll let you know. Their goal is to help you find a home that feels right — not just sell you any house.

Negotiation

Negotiating can be tricky, especially when emotions are involved. You might fall in love with a house, but without a solid plan, you could end up paying too much or agreeing to bad terms.

Here is an example of negotiation expertise at play:

Mick Duchon, a real estate agent with the Corcoran Group in Miami Beach, spent several weeks managing negotiations between his seller, who owned a 2,700-square-foot condo in a luxury building in Surfside, Fla., and a potential buyer. The property was listed for $14.9 million in August, but the buyer’s first offer was $13.25 million.

“My client was surprised because it was so far below the most recent comparable sale,” said Duchon. “But I explained that since we are in the luxury space, there are not many transactions on an annual basis, so we should consider engaging with this buyer by sending them a message that there was flexibility but that we were nowhere near a deal.”

The seller lowered the price to $14.5 million, and the buyer countered with $14 million. When the seller wouldn’t accept that, the buyer raised the offer to $14.3 million, leaving a $200,000 gap. The seller eventually accepted the $14.3 million offer, and the deal closed in December.

Source: Realtor

 

A buyer’s agent knows how to handle negotiations. They’ll look at the market, compare recent sales, and create a strong offer. 

Especially when an inspection will be conducted and issues are uncovered, then they will negotiate for a lower price proportional to the extent of the damage or the amount for the repairs.

They will also tell you when to walk away when they find out it is a bad deal. And this is worth every penny.

 

Agent’s Connections

A buyer’s agent has built connections with reliable professionals. They’ll recommend people they’ve worked with before; folks who get the job done right. That means less stress for you and more confidence in the people handling your home purchase.

Final Thoughts

We recommend always asking for a buyer’s agent’s help, especially if you do not have the necessary skills or you know you are not capable of doing the things a buyer’s agent can do.

Although, you will pay a hefty amount, that amount you pay will be justified later on. Personally, I would rather pay the asking compensation of the buyer’s agent rather than pay an amount higher than that because of some issues that the agent may have seen if you could have availed one’s service.

 

If by any chance you are interested in buying a property in Okoboji, we can definitely help you with your next ideal home. 

Chat with one of our realtors today!

 

About the Author

Aaron Jones is an award-winning real estate professional, recognized in the RE/MAX Hall of Fame with a Lifetime Achievement Award. As an Accredited Buyer’s Representative (ABR) and Seller Representative Specialist (SRS), he is dedicated to helping clients navigate the home-buying process with confidence. Licensed in Iowa, Minnesota, and Nebraska, Aaron brings local expertise and a commitment to exceptional service.

???? Phone: 712.320.9442
???? Email: aaron@bojihomes.com
????Website:https://www.bojihomes.com/testimonials