Ever wondered why teaming up with a buyer agent is a smart move in the real estate game? There’s been a lot of buzz about buyer agents and commissions lately.
Quick history: buyer agency emerged in response to the real estate practice of the ’90s when listing agents were simultaneously finding buyers directly and using sub-agents. This dual role caused confusion, leaving buyers uncertain about whose team they were on, where all representatives were actually on the seller’s side.
Nowadays, having a listing agent represent both the seller and the buyer is considered dual agency, and is illegal in a handful of states. Even in states where it is legal, like Oregon, there are specific requirements for dual agency, and it is generally frowned upon as a conflict of interest. Having a buyer agent puts a trained professional on the buyer side that is legally obligated to work for the buyer’s best interests.
Don’t think for a second that every bit of that commission is going to ‘line the pockets’ of the broker that earned it.
Buyer agency became a crucial shield against the complexities of the real estate market. Agents offer more than a tag-along service; they provide dedicated representation, ensuring your interests are front and center in negotiations and transactions.
Now it seems people think consumers no longer need these protections. That they’re passe. In lieu of buyer agents, the alternative becomes completely DIY for buyers, or will more likely default to implied dual agency where the buyer is asking the listing agent for advice.
But here’s the kicker – trying to DIY your home purchase is likely to be more work for less money than you want. Not only are you at the mercy of a listing agent, but you are also at a disadvantage of negotiating from a point of expertise. Let’s face it, an agent is more apt to behave poorly with a single customer in a vacuum than they are with another agent in the same community industry, where paths are sure to cross.
Between finding the properties; reviewing, researching, screening, arranging and scheduling showings; helping you find, hire, and sit with inspectors, asking the questions you may not already know to ask, processing escrow deposits, lining up closing, and etc., it’s possible that you may not cross every “t” if you DIY. Especially if you have a different full-time job there’s just a lot to keep track of that agents do all the time for their job.
A good buyer agent can help you navigate the process skillfully, will walk you through the process end to end, and will lend you their experience and their network. You will be confident that your negotiations and transactions are the best they can be, and that you have a skilled advocate in your corner.
Buyer agents provide, among many things:
- Local Expertise
- Market Analysis
- Property Search
- Property Showings
- Negotiation
- Contract Guidance
- Due Diligence
- Navigating Legal Procedures
- Closing Support
- Post-Closing Assistance
Most agents have an extended team of professionals that they work with and can help you find the right match for your need. They will never say you have to work with a particular professional but should always be able to provide several options and some honest insight into each. Real estate brokers are not financial advisors, lawyers, mortgage brokers, or tax consultants: but they can introduce you.
Then there’s all the talk about commissions. Some say real estate brokers are rolling in it and don’t deserve the fees they charge. Remember though, the charged price is almost never the earned price. Don’t think for a second that every bit of that commission is going to ‘line the pockets’ of the broker that earned it. Most brokers drop a huge percentage off the top to pay bills and support their business. You don’t think the plumber at your house is keeping all that cash for themselves, do you?
Reality TV may have painted a glitzy picture, but actually most real estate brokers are putting in the grind at the local coffee shop, not sipping champagne in mansions.
If you want to chat about real numbers without the theatrics, hit me up. Real estate brokers work hard, take risks, and wear many hats to serve their clients. It’s fair to get paid for our hustle. And when it comes to buying or selling real estate, remember – almost everything’s negotiable. Get creative!
