Why Use a Buyer’s Agent?
Everyone wants to save money, so what’s the harm in not using a Buyer’s Agent?
A friend of mine called from Florida the other day and explained that she saw the home of her dreams and had to buy it. She drove by and the listing agent happened to be outside. My friend stopped to speak with the agent.
The Listing Agent told my friend that he could most likely get her offer approved if my friend worked with the Listing Agent directly. Additionally, he mentioned that he could save her money on closing costs.
Hmmm, that is not only false, but unethical! The role of the Listing Agent is to provide a fiduciary duty to their client, the seller. Unless specifically expressed in writing, the Listing Agent has no loyalty to the buyer and thus, the full commission amount will go to the listing agent. Essentially, the buyer loses.
A seller enters into a listing agreement with the listing broker for an agreed upon amount or percentage. Once the property is listed in MLS that fee is shared with the agent, if any, that sells the property (Buyer’s Agent). If the listing agent sells the property…they keep 100%. That means not only do you not get a discount equal to the shared fee, but you also are letting the seller have an advantage in the negotiations.
The role of the Listing Agent is obligated to inform the seller of the buyer’s financial abilities, the willingness to pay more, any vulnerabilities and weaknesses, and is obligated to get the best terms and highest price for the seller. The Listing Agent can only provide marketing and other data to justify the seller’s position, terms and price.
If a Buyer who does not have a Buyer’s Agent believes he/she is also being represented by the Listing agent (also known as dual agency), any information confided to the Listing Agent can and most likely will be used against them. For example, you let the Listing Agent know that you are willing to pay $550,000 for a home, then guess what, you will pay $550,000 and not a penny less.
Buying a home is one of the largest financial decisions one will make in their lifetime. As such, a Buyer’s Agent provides an invaluable protection and does not cost the buyer a cent. Why? The seller customarily pays the full commission amount. So, why would you not hire a Buyer’s Agent?
Number one, it does not cost the buyer any out of pocket expenses. But could cost the buyer the deal if they don’t use one. The role of the Buyer’s Agent is to provide a fiduciary duty to you, the buyer. The goal is to really listen to the needs of the buyer. It’s all about you, not me! The Buyer’s Agent assists you in negotiation in your best interest i.e finding you the home of your dreams while getting the client the best price, as well as continuous updates on all available homes that meet your criteria.
Additionally, the Buyer’s Agent negotiates the lowest price, best terms and favorable conditions on your behalf, keeps your personal negotiating points private and informs you of facts about the seller’s position, can provide you with construction specifications, cost estimates, and consulting for custom homes, and most important, owes loyalty to you, not the seller!
If you are considering the purchase of a home, call Ashley today- she’s here to listen to YOUR needs! 858.414.8594 firstname.lastname@example.org