Why Have a Buyer's Agent When Purchasing a House?
Buying a house is one of the most significant undertakings you'll make in your entire life. It's not simply about finding the right home for you and your family; more than anything, buying a house is about making the right financial investment on a long-term basis.
Before you even put down your earnest money deposit, an exceptional buyer's agent will have been doing several things for you, including searching for the right property and starting the due diligence process when you do.
There are a plethora of reasons you should turn to a buyer's agent when you start the house-buying process. Below are some of the most essential reasons to hire a buyer's agent when purchasing your next house:
1. It's Free
One of the first things you need to know about hiring a buyer's agent is that it's not going to cost you anything. That's right; 99 percent of the time it won't cost you a dime!
A buyer's agent will be paid by the home seller once the home is sold. Not only is it free, but a buyer's rep will be saving you both time and money. As always, it's essential to have a good working relationship with an agent. In other words, make sure you find one that you feel comfortable working with.
2. Going to the Listing Agent Isn't Smart
For some reason, lots of buyers think they'll get a better deal if they go to the seller's agent. This is one of the biggest myths in real estate and could cost you considerable money in the long run. Quite often, buyers think if they go to the seller's agent, they'll give them back some of the commission. While this may be true, the agent works in the best interests of the seller, not you!
Saving a couple thousand dollars in commission but overpaying on a home by $10,000 works out to a net loss of $8,000! In addition, the agent is going to be doing everything in their power to close the sale, not what's best for you. Avoiding dual agency is something every smart buyer does. Always have your own designated buyer's agent.
3. Professional Experience
A buyer's agent should have the right kind of professional experience in finding the right home for you. Finding the right property is a time-consuming process, and it's easy to find yourself spending hours viewing properties that are not right for you.
It's crucial to have a bit of help, especially if you're a first-time buyer or a very busy person. Having an agent screening the properties for you can save you lots of time. Not only that, but they'll also view properties to make sure they're in good order.
A buyer's agent who has been in the business for a long time will pick up on common problems, such as a damp basement, roofing problems and leaks.
4. How Well Do You Know the Area?
Having a buyer's agent on board when you move to a new town or part of the country is especially vital. After all, you may not know the area that well. Having someone with local knowledge means that you're much more likely to end up investing in a property in the "right" part of town. An exceptional agent that services primarily buyers will know their way around the local area well. They'll know the popular neighborhoods that are appealing to most buyers and those that aren't.
Also, an agent will make sure the amenities that are important to you are close by. Schools and leisure facilities are often on the top of most homebuyers' agenda.
5. Valuation and Finance
Valuing a property is not easy when you don't have a lot of experience. When you're buying your first or second home, you'll need all of the help that you can get. Nothing beats turning to a professional to help you purchase a property at fair market value, or less, if you're lucky. One of the best skills of a buyer's agent is to be able to evaluate the right purchase price for the home.
Financing can be a nightmare, as well. Sure, you may have your mortgage preapproval, but when it comes to buying a home and financing it, there's often a mountain of paperwork to work through. A buyer's agent will help you to do so, and make sure the process stays on track. They explain fundamental real estate terms you might not be familiar with. For example, a significant percentage of buyers don't know the difference between earnest money and a down payment. Understanding the function of each of these things is crucial for a buyer to understand. There are a myriad of others.
6. How Much Time Do You Have for Your Showings?
Not having a buyer's agent can mean you end up at a lot of showings or viewings that aren't right for you. When you contract in a buyer's agent at the start of the process, they'll make sure that they schedule everything for you. It's like having your own personal assistant. Tell them when you're free, and they'll do most of the work for you.
7. The Value of Contracts
Never underestimate the value of contracts when it comes to buying a home. Arrangements are not only about money; timelines are established in the purchase contract, as well. A buyer's agent will make sure you follow through with any necessary responses required under the terms of the contract. This is critical because not doing so could put your escrow funds at risk of loss.
An excellent agent will keep you informed and on track so that you don't lose any of your escrow funds. There's also an abundance of smaller details you need to deal with before you sign on the dotted line. Many of them form part of modern-day contract law. Changing regulations are something else a buyer's agent will help you with.
8. Professional Contacts
Once you've bought your first home, you'll appreciate how many people form part of the buying process. It's not just you and your bank manager. You'll also need the help of other professionals, such as a home inspector. What if the home inspector picks up a problem during the inspection, and you need an estimate for work? A buyer's agent is likely to have the right contacts at their fingertips, and will also be familiar with the process.
9. A Buyer's Agent: Your Negotiator
Many of us don't like to negotiate, and we're not always that good at it. You may like the seller and don't want to upset them. After all, we're only human. It's hard to say "no," or ask someone you like to drop the price or negotiate a needed repair.
Let's go back to that home inspection that picked up a slight problem. Ask yourself if you have the skill, and confidence, to renegotiate the price of the property. It takes both to close a deal. Once again, this is something that your buyer's agent can do for you.
10. Let's Stay on Schedule
Staying on schedule is an important part of the process of buying a home. You may need to get out of your old house on a specific date, or you may have a starting date for a new job. Trying to pack up your old home and keeping the ball rolling is not easy.
Many buyers don't realize that a buyer's agent will keep things going while you focus on moving out of your property or drive across the country to take up that promotion you're getting.
An excellent buyer's agent will have your back at all times. That is perhaps the best way to look at the relationship. They're your fiduciary in the strongest sense of the word. Once it's all over, you'll be glad that you decided to ask for the help of a buyer's agent instead of going through the buying process on your own!
Bill Gassett is a nationally recognized real estate leader who has been helping people buy and sell Metrowest Massachusetts real estate for the past 32-plus years. He has been one of the top RE/MAX REALTORS® in New England for the past decade. In 2018, he was the No. 1 RE/MAX real estate agent in Massachusetts.