Why Should a Buyer Use an Agent?

Lots of buyers wonder why they need an agent to help them purchase a property. After all, you know what you’re looking for. Why do you need someone to help you find it? And besides, agents are expensive – all that commission! Anyway, the house is already listed with an agent. Why shouldn’t you just call that person?

These are some of the questions that many buyers have when they are buying a home. Some of these questions may even be on your mind. So why should you use a buyer’s agent to buy a home?

There are many reasons to use a buyer’s agent. You hire a professional to cut your hair, you visit restaurants with professional chefs, and you go to a doctor who has a professional license. Buying a home is one of the most important purchases you are likely to make. Why wouldn’t you want a professional to help you in that transaction and look out for your best interests? Like a good hairdresser or a great chef, a buyer’s agent will ensure that you have the best experience possible when buying your home.

So what are some reasons you as the buyer should use an agent?

• A Buyer’s Agent Provides Representation for You Alone
  First of all, a buyer’s agent represents YOU, the buyer, and no one else. Your agent has a fiduciary duty to you throughout the transaction. A fiduciary relationship is one of confidence, good faith, and trust. The fiduciary is required to act at all times for the sole benefit of the client. This is why you don’t want to call the listing agent to help you as a buyer. The listing agent already has a fiduciary duty to the seller. He or she is bound to represent the seller in the transaction, and work for the seller’s best interests. Any advice you get from the seller’s agent could be slanted toward getting the best the deal for the seller. You as the buyer need someone in your corner to represent your best interests. Your agent will provide you with loyalty, care, confidentiality, and accountability, and will negotiate the best terms possible for you as the buyer.
• A Buyer’s Agent Provides Free Professional Help and Advice
  In most cases, an agent’s services are FREE for the buyer. The commission in any transaction is offered by the seller in order to find a buyer for their home. There are some circumstances where this is not the case, such as in a For Sale by Owner transaction if the seller does not pay a commission, but these instances are few and far between. Buyers rarely have to pay for representation in a transaction. So you get free professional advice and help when making your purchase!
• A Buyer’s Agent Has Expert Knowledge of the Real Estate Market
  Your buyer’s agent knows the real estate market, and can tell you the good and the bad. Are there a lot of houses for sale? Are prices going up or down? What kind of offer should you make to get the house you want? Can you get a better deal on a similar house in an area you may not have considered? Are there any problems in the area that you should be aware of before buying? Your agent keeps abreast of all the changes in the market and can help you with all of these issues and more.
• A Buyer’s Agent Has Lots of Real-World Experience in Looking at Houses
  As a buyer you have probably been looking online at houses, or going to open houses in your area. You might think you have seen plenty of properties. But as a professional, your agent has seen hundreds of houses. He or she can give you valuable insight into the homes you are considering. Does the home have lots of upgrades that you may not have noticed? What things about the home are desirable? Does it lack anything that may be important? Are there any defects or problems that you might have overlooked that are apparent to a professional? Because your agent has lots of real-world experience, he or she can help you appreciate the houses you are seeing and possibly avoid some problems you might overlook.
• A Buyer’s Agent Helps You Maximize Your Time
  We all have busy lives – work, kids, school, social activities – and there is only so much time in a day. Trying to coordinate looking at houses can be a nightmare for a buyer. You don’t have the time to set up appointments while you are doing other things. This is where your agent comes in. It is your agent’s job to set appointments and coordinate showings to help you maximize your time. Only available after 6:00 pm or on weekends? Your agent will work with your schedule as much as possible to get you into the homes you want to see.
• A Buyer’s Agent Explains Complex Forms
  Unless you are buying a newly constructed home, the property you are looking at has a history. Sellers should inform prospective buyers of that history to the best of their knowledge. They do this by completing a property disclosure statement, which tells you about the life of that property. Has the property flooded in the past? Are all of the appliances in working order? How old is the roof? Is there flood insurance on the property? Is the well or septic system in good order? Is the foundation sound? The answers to these questions can make or break a sale in some cases, so it is vital that you as the buyer understand any issues. Your agent will explain this and other forms to you, and will clarify any issues for you with the seller.
• A Buyer’s Agent Can Help You Find Financing
  Before you start looking at houses, you should know how much house you can afford. There are many kinds of lenders, and they all offer different types of financing to buyers. You should know what these are to help you maximize your buying power. Since your agent is a fiduciary, you can trust him or her with your confidential financial information. He or she can then help you find a lender who offers the types of loans you feel comfortable with. (Local lenders are usually best; they know the market, tend to be easier to work with, and are more likely to be helpful.) Additionally, agents have a lot of experience in dealing with lenders, and can make recommendations as to which ones facilitate smooth transactions. The last thing you want as a buyer is a mortgage broker or lender who will take advantage of you or not give you every financing option available.
• A Buyer’s Agent Serves as Your Negotiator
  Once you have decided on the home you want, your buyer’s agent becomes your voice in the transaction. There are several things that he or she will do for you at this stage. First, your agent will help you decide what you should offer for the property. A seller can ask anything he or she wants for a property, but your agent understands pricing well. Agents know what affects a home’s value, and will guide you in making your offer based on real data, not emotion. Your agent will run a comparable sales analysis (CMA) for the home based on the properties that have sold in the area in the last six months or so. These “comps” will tell you what similar homes have sold for, and give you an idea of what you should pay for the home. You cannot get this type of accurate information anywhere than from an agent. This is real data, not a “Zestimate.” Your agent will use this analysis to negotiate the best deal for you.

  Once you have made your offer, your agent can help you negotiate with the seller if any problems arise. For example, you will likely want to have the home inspected. If significant issues appear after the inspections, your agent will talk with the seller about a credit, price reduction, or repairs on the property before you proceed. Your agent knows how to get you the best value for your purchase. 

• A Buyer’s Agent Helps You Through the Contract Process
  Real estate contracts and paperwork can be confusing and hard to understand, even if you have purchased property before. Having an expert to navigate the paperwork for you can be invaluable. Your agent knows the entire process from start to finish. He or she will write the proper contract and use the appropriate forms for your area. Generic contracts available on the internet may not be appropriate or even valid. Your agent will explain every step of the process to you, ensuring that you understand all of the paperwork before you sign anything.Even in the best transactions, problems can occur. Many of these issues and delays can be avoided or minimized with your agent’s help. He or she will stay on top of the transaction and be on the lookout for possible difficulties. If problems do occur, your agent will be able to figure out what went wrong and suggest solutions to get things back on track. Most importantly, your agent will keep you informed every step of the way, so that you will know exactly where you stand at every part of the process.
• A Buyer’s Agent Will Have the Connections You Need
  There are a lot of people who may be needed to get you to closing, and agents know a lot of people. Instead of wasting your time trying to track these people down, let your agent do it for you. Agents can help you find lenders, attorneys, and title companies. They can set up inspections of the proposed property for termites, pipes, and foundations. Agents will usually have a list of professionals in many different areas that they can recommend for anything you need.Even after you buy your property, keep in touch with your agent. Ask for recommendations if you need movers, landscapers, painters, plumbers, storage units, or other professionals. Remember, your buyer’s agent has been in this business a long time, and can be a valued resource for you for years to come.