Home shopping: Should you use a buyer's agent?

By Josh Smith

After you decide to buy a home, or at least decide to start the long process of looking at homes, your next decision is whether or not to use a buyer’s agent.

A buyer’s agent is a Realtor that works for you, the buyer, instead of the seller. These Realtors are just like the selling Realtor’s and many times also sell homes themselves.

Rather than trying to help you get the highest price, a buyer’s agent will help you get the best deal on a new home. The good news is that you don’t have to pay for a buyer’s agent, in most cases the agent is paid out of the commission paid by the sellers.

Why a Buyer’s Agent is a Good Idea

• Finding Homes Fast – If you want to know about homes as soon as they come on the market, perhaps even before they arrive on the nationwide listing platform (MLS), a local Realtor can help. This could be a new listing they had heard about, or one being listed with their agency.
• Knowing What to Look For – A buyer’s agent is an experienced homebuyer, which means she can help you identify potential issues with a property that you might never have considered.
• Provide Guidance – A buyer’s agent can help you know when to contact, and who to contact, when you need a home inspection, title and help you find a lender if need be. Expect to receive several recommendations from which to make a choice.
• Scheduling Showings – Rather than spend you time trying to set up showings and track down real estate agents, your buyer’s agent can do all of this for you, which is a major time saver.
• Pricing Information – If you need help, the buyer’s agent can help fill you in on pricing trends in the area and help you figure out if a home is overpriced. He can also help you come up with an appropriate offer.

Things to Watch For

You’ll want to make sure that you have a good agent, because they are paid based on a percentage of the final sale price. This could influence an unscrupulous agent to suggest a higher opening bid to pad his or her pockets.

How to Find a Buyer’s Agent

The best way is to ask your friends, family and coworkers for recommendations. If this fails, you can search online or by visiting a local real estate agency. Find an agent you click with before signing an agreement.

Buyer’s Agent Agreements

When you pick a buyer’s agent, you may be asked to sign an agreement that you will use a select Realtor as your source for finding a home.

This contract will often allow you to quit your Realtor if he or she is not performing, but it prevents you from cutting out your agent for a backdoor deal on a new house. These are in place because Realtors spend a lot of upfront time on helping you find a home before getting paid.

Should you use a buyer's agent?

 

If you are a first time homebuyer, a buyer’s agent will definitely provide you with additional information and help that will make the home buying process smooth.

For home buyers who are buying for the second or third time, a buyer’s agent may not be needed to navigate the waters, but can still help you with finding properties fast, scheduling showings and more.