It doesn’t matter whether you’re looking for a starter or permanent home; buying a home is daunting. The good news is that a real estate agent makes it more accessible. You will want to find a buyer’s agent to help you find your dream home. What is a buyer’s agency? How does it differ from a listing agent? This article will help you understand the differences between the two and help you choose the right real estate agent to personalize your home-buying experience.
What is a Buyer’s Real Estate Agent?
A buyer’s agent is a professional who assists home buyers in the purchase of a home. A buyer’s agent is a representative of the buyer in a real property transaction. They have a legal responsibility to protect the buyer and ensure that they get the best deal. Some real estate agents only work with buyers. Most, however, can work as listing agents or buyer’s agents, depending on the transaction.
Buyer’s Agent Vs. Listing Agent
Two agents are involved in a real estate transaction: a buyer’s representative and a listing agent. They are commonly referred to as Realtors or real estate agents. While the buyer’s agent acts on behalf of the buyer. The listing agent represents the seller,
Buyer’s agents will help the buyer navigate the real estate market by finding listings and advocating on their behalf. On the other hand, the listing agent is responsible for selling a property. The listing agent, also known as the seller’s agent, is responsible for looking out for the seller and ensuring they get the best terms for selling their property.
Some buyers prefer to work directly with a listing agent rather than hire a representative. This type of dual agency is possible, but it’s not recommended as it could lead to conflicts of interest. It’s challenging for an agent to be loyal to both sides of a transaction when it comes to negotiation. In essence, buyers and sellers have different interests, particularly regarding the purchase price, and it’s essential to find an agent that will put your interests first. Dual agents in some states are illegal, and you must be familiar with your local real estate laws.
Buyer’s agents will help the buyer navigate the real estate market by finding listings and advocating on their behalf. On the other hand, the listing agent is responsible for selling a property. The listing agent, also known as the seller’s agent, is responsible for looking out for the seller and ensuring they get the best terms for selling their property.
Some buyers prefer to work directly with a listing agent rather than hire a representative. This type of dual agency is possible, but it’s not recommended as it could lead to conflicts of interest. It’s challenging for an agent to be loyal to both sides of a transaction when it comes to negotiation. In essence, buyers and sellers have different interests, particularly regarding the purchase price, and it’s essential to find an agent that will put your interests first. Dual agents in some states are illegal, and you must be familiar with your local real estate laws.
What does a Buyer’s Real Estate Agent do?
As a Buyer’s Agent, a real estate agent is responsible for providing guidance and support to clients during the home-buying process. A buyer’s agent typically performs the following tasks:
- Locating listings: The buyer’s real estate agent will begin the process by asking buyers about their preferences and needs to help them determine their dream home. The agent will use this information to start searching for suitable properties. The agent will also notify buyers of new listings added to the real estate marketplace during this period.
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Scheduling showings. The buyer will look through the listings sent by their agent and choose the ones that they wish to see in person. The agent will coordinate with the sellers if the property is being sold by the owner (FSBO) and set up a time for buyers to visit the property. The buyer’s agent will inform them about any open houses they might be interested in.
- Asking and answering questions: Buyer’s agents will usually accompany buyers to any open houses or showings they are interested in. The buyer’s agent will be at the property and answer their questions. They can also offer their expert opinions about the property. The buyer’s agent can also ask the listing agent (or FSBO Seller) questions to gain more information about the seller’s situation, property condition, taxes, etc.
- Pricing consultation: After buyers have found a property they are interested in, their agent will ask the listing agent whether there are any disclosures (potential issues the seller must disclose to buyers) that could affect the home’s price or desirability. Next, the agent will conduct a comparative market analysis (CMA), which determines the appropriate price to offer for the property. This is based on comparable properties sold in the same area. Based on the analysis of the property and the details, the agent will recommend that buyers make a specific offer.
- Negotiating with the seller’s listing agent/FSBO agent: The buyer’s agent will make the offer on their client’s behalf and negotiate the terms and price. The buyer’s agent will inform them of any counteroffers from the seller and help them decide whether or not to accept them. Agents for buyers will inform clients about possible ways to make their offer better, including adjusting the closing date or eliminating contingencies. The buyer’s agent will begin drafting contracts as soon as the seller accepts the offer.
- Referring other real estate professionals: The buyer’s representative will help guide and advise buyers throughout closing. They may refer other professionals to the buyer’s agent, such as inspectors or real estate lawyers, before closing. This will help protect the buyers’ rights.
Who pays a Buyer’s Real Estate Agent?
The seller usually pays both the buyer’s and listing agent’s commissions. Buyers get the benefit of working with buyers agents free of charge, so it is important to understand how real estate agents are paid. Buyer agents who are unable to find the right home for their clients will not get paid.
Unless otherwise stated in the sale contract (or an exclusive agreement between client and agent), the commission is 6% of the purchase price. It is split equally between listing and buyer’s agents. Technically, the seller pays both agents as their fees are taken from the proceeds of the sale.
If the home’s purchase price is $300,000 then 6% (or $18,000) would be taken from the net proceeds of the seller to pay the agent’s commission. The $18,000 would be split between the listing agent and the buyer’s agent. Each would receive $9,000 and the seller would walk away from the transaction with $282,000.
Can you terminate a contract with a buyer’s agent?
Buyer’s agents are only paid if buyers find and close new homes. Agents may insist that buyers sign an agreement with their buyer’s agent to cement their relationship. The contract outlines the terms of the relationship and ensures that buyers work only with the agent to buy a new house.
Buyers can change agents if they haven’t yet closed on a home after the contract expires. Buyers should carefully read their contracts, as many require that the agreement be automatically renewed after 3 months.
The contract’s fine print will determine whether buyers can end their contract if they and their agent can’t see eye to eye. Buyers may be able to terminate the contract more easily if the agent does not perform the tasks listed in the agreement, however.
To ensure that you are not stuck with an agent who you are uncomfortable with, avoid signing a buyer’s brokerage agreement, or try negotiating a trial period. Although some agents might refuse, you should always ask if you can include a clause in your agreement that allows you to opt out after 30 or 60 days.
How to Find a Buyer’s Agent
Given the free advice and expertise on offer, it’s clear that buyers should always work with a buyer agent. But how do you choose the right agent to represent you?
It is vital to interview several agents and ask enough questions to get a feel for their personalities and past experiences. The ideal agent is someone who can find homes in the price range and location you desire, but also who makes you feel at ease. These questions will help you to find the perfect agent for you:
- What length of time have you worked in the industry?
- How many hours do you work on average, and what hours are they?
- Are you a specialist in working with buyers?
- What number of different sellers and buyers are you currently working with?
- Which experience have you had in finding homes in my preferred location/price range?
- Why should I choose to work with you? What are you able to bring to the table that no one else can?
When you describe the ideal home you want, it is important to consider how well the agents get to know you. You will find the right agent for you if they get you as much as they get the industry.
Buyers Agent FAQ
Why are some buyers choosing not to work with an agent for their purchase?
A buyer’s agent may be a good choice because of their market knowledge. The decision to not use a buyer’s agent is usually based on money. The commission they receive is approximately 6% of the purchase price. The listing agent and buyer’s agent will split the funds. These expenses can be avoided if you don’t hire an agent.
Previously, only home buyers had access to information on homes for sale through real estate agents. Online, you can find information about real estate properties, including sales prices, crime rates, and house listings. Some buyers are now able to search for houses on their own and avoid paying commissions.
When is a Buyer’s Agent Right For Me?
It can help to narrow down your home search before you hire a buyer’s representative. However, it is not always necessary. It is a good idea to hire a buyer’s representative as soon as possible after you have found the right person. This will make the whole process easier and more manageable. No matter how thorough your research is, a buyer’s representative will have the experience and resources of an agent, which can help you to get the best deal.
Can a seller refuse to pay the buyer’s agent?
The seller usually pays both the buyer’s and seller’s agent commissions. A seller may request that the buyer pay the buyer’s agent’s commission. They must reach an agreement with the buyer. Both parties must sign a purchase agreement that outlines who will pay the commission.
Here is our pick for the best Buyer’s Agent in McMinnville, Oregon
McMinnville Real Estate | Doty Team
Established in 1998, the Doty Team from McMinnville Real Estate is a full-service real estate company committed to serving their clients, city, and community by providing a broad range of high-quality services. Dedicated to helping people achieve their dreams of home ownership, all agents excel in customer service and work hard to stay on the cutting edge of the industry’s ever-changing demands.
TOP AGENTS
Dom Doty
(503) 435-9070
(503) 435-9070
Devri Doty
(503) 435-7165
(503) 435-7165
Mackenzie Kauer
(971) 241-2066
(971) 241-2066