A Buyer’s Agent represents an individual that is looking to purchase property. The agent has several responsibilities in this role which revolve around the fact that he/she has a fiduciary responsibility to the client.
An agent should initially evaluate the client’s wants/needs, and how they fit into the individual’s budget. Once it is determined what type of home or property is suitable for the client, and how much they can afford the agent begins reviewing properties, eliminating those that are unsuitable. The agent should find several properties for the client to look at and assist the client while viewing the properties, offering any pertinent advice. Once a property is chosen by the client, the agent should research the property more thoroughly and offer advice as to how much the property is worth in the current market, and how much the client should offer. Ultimately it is always the client’s decision as to whether or not to place an offer on a property, and how much that offer will be. The agent prepares the paperwork for the offer, and presents it to the sellers agent on the buyer’s behalf. The agent also negotiates on behalf of the buyer to secure the property with the buyers best interest in mind. Once negotiations are complete and an offer has been accepted the agent can supply the buyer with qualified referrals for example home inspectors, and attorneys. It is however always the buyers decision on whether or not to use the referrals, or to choose someone on their own.
A Buyers Agent is compensated through a commission split. So basically a seller hires an agent to list their house on the market. The seller and the sellers agent negotiate how the agent is to be compensated, which is based on a percentage of the final sale price of the property for example the two can agree that the seller will give the agent 6% of the final sale price. The buyers agent brings a buyer to the seller and the property is purchased. The sellers agent then splits the commission that he was given by the seller with the buyers agent typically 50-50 so the sellers agent and the buyers agent both get 3% of the sales price. Keep in mind the 6% figure is just an example, the commission rate is always negotiated between the seller and his agent. Now some would say the seller will pass on to the buyer the extra cost of his hiring an agent, which I disagree with. A house is valued at a certain amount due to a number of factors, none of which is whether an agent represents the owner or not. Examples are location, size, amount of land, condition of the house, and similar home values in the area. If a seller over prices his home compared to what it is actually worth because he is making up for hiring an agent then the house doesn’t sell. One thing about listing a house on the market for sale is that it needs to be priced right in order to sell, but we will go over this another time, as we are talking buyers agent here.
What this translates into is that in my opinion buyers should utilize the knowledge and expertise of an agent. The agent will reduce the stress of the home buying process and if you use the right agent leave you confident and satisfied in the purchase you have made.
As always I welcome any questions, comments, and or concerns about what was discussed here. Email me at TheBostonMovesGuy@hotmail.com or firstname.lastname@example.org