Let’s face it: If you’re a first-time buyer or new to the real estate market, the process may be overwhelming (and no, you’re not alone!). Isn’t an agent, for example, an agent? Almost.
To add to the confusion, the sort of agent that assists you through a transaction is referred to by many different names: A listing agent, often known as a seller’s agent, represents the seller, while a buyers agency represents you as the buyer.
While most agents operate as buyers’ agents or sellers’ agents depending on the transaction, others function purely as buyers’ agents. A buyers agency is required by law to represent the buyer’s interests and assist them in obtaining the best possible bargain.
You don’t have to hire a buyer’s agent if you’re a seller. However, in practice, you may discover that a buyer’s agent is a significant benefit, if not a must, for concluding a transaction. Our expert-backed guide delves further into the job of a buyers agency and sets out the benefits and drawbacks of hiring one.
A buyer’s agent is a person who represents a buyer in the purchase of a home.
Let’s start with the fundamentals. Every real estate transaction has two sides: one for the buyer and another for the seller. Although many brokers assist both buyers and sellers with transactions, other agents specialize in one or the other.
Sellers’ agents work on behalf of their clients, who are the owners of the property they are selling. Listing agents are another term for them. A buyers agency represents purchasers in the search for and purchase of a house on the opposite side of the transaction.
What are the responsibilities of a buyer’s agent?
Using their licenses and skills, a buyers agency will advise, assist, and steer you through the process.
- Identifying properties that suit these traits and bringing you or leading you to view them
- Assisting buyers with their wish lists, a realistic collection of home attributes they’d want to aspire for within their budget.
- Choosing a price for your offer, drafting it, and submitting it to the seller’s agency
- Representing your best interests in the transaction, including negotiating price and other terms.
- Managing the transaction throughout the process
- Negotiating repairs or price adjustments that may be possible as a result of appraisals or inspections
- Walking you through the final walkthrough before you get the keys
- Being available at the closing table for any necessary advice and support
- Ideally, handing over the keys with a smile, a warm congratulations, and an offer to take that first photo of you in front of your new home!
Why should you use a buyers agency?
You are not required to deal with a buyer’s agent in order to acquire a house. However, there are several benefits. “There aren’t many drawbacks,” Markarian explains. “They’ll find a property for you, submit an offer for you, make sure the contract is correctly worded, and that you’re insured in terms of responsibility,” he explains. “They help you succeed by putting you in the right environment.”
Let’s take a look at each of the advantages in more detail.
For the vast majority of individuals, purchasing a house is the most significant purchase they will make in their lives. A buyer’s agency is your greatest ally in navigating such a significant purchase (and life event!).
In a competitive market, a buyer’s agent may assist you in keeping up with new properties. Finding a buyer’s agency with local knowledge of the market in which you’re looking for a home is very vital. “Working with someone with expertise and understanding of a local market is critical,” Markarian explains. “People behave differently in various parts of the country, so it’s critical that your agent be familiar with the local market.”
In a hot market, a buyer’s agent understands where and how to find unlisted houses, or homes that aren’t listed on the MLS. These might be “pocket listings” or non-traditional transactions like short sales or foreclosures, which can be even more difficult to locate (and to navigate).
When it comes to negotiating buyer conditions, a buyer’s agency excels. Making the sale is dependent on your ability to get financing, the findings of a home inspector, or your ability to sell your current home before closing on a new one.
Red flags will be picked up by a buyer’s agent. These might include challenges that affect a certain neighborhood in general. They might even be more specialized to property insider information.
A buyer’s agent may bring expertise and knowledge to the table, which is not only reassuring but also advantageous in a competitive market.
When you’re making bids in a multiple-offer scenario, having a knowledgeable buyers agency may help you stand out. They’ll go to bat for you and help you succeed.”
A buyer’s agency is intimately familiar with the transaction from the perspective of the buyer.
You’ll avoid a conflict of interest in dual representation if you hire a specialist buyer agency. That is to say, the buyer’s and seller’s aims in a transaction are inherently at odds: The vendor wants to get the best price possible, while the buyer wants to get the best deal possible. So, if an agent is representing both parties in a transaction, which one wins? Working with an agent that simply represents you in negotiations alleviates this stress.
What are some of the disadvantages of using a buyers agency?
Because a buyer’s agency primarily deals with purchasers, they may not be aware of all current listings on the market.
You must pay them for their services, just like any other real estate agent. This is paid in the form of a commission on the sale of the house. (You will not be charged if you do not buy a house from this agency.) “You could make the case that you don’t need a buyers agency because there’s a commission and you’re going to save the money.
If the seller has any difficulties, your agent may be unable to help the listed agent in resolving them since they are unfamiliar with as many resources as the listing agent is.
That’s all I have to say about the subject. Working with a buyers agent is a big benefit, if not a need, for most individuals when it comes to getting the best offer.
You could do it on your own as a buyer, but many individuals lack the necessary experience, competence, or interest.
“For example, if I’m in court, I want an attorney to represent me, and I’ll depend on their skill and abilities to assist me succeed.” Could I act as my own advocate? Sure. “However, what do I know about the law?” says the narrator.