Many people don’t understand what buying a property using a buyer’s agent means. In most cases, home buyers believe buyer’s agents will only complicate the buying process and make it longer.
Generally, home buyers try to avoid the buyer’s agent fee. Therefore, they prefer dealing with selling agents personally to negotiate a purchase price. Meanwhile, sales agents seek novice home buyers to take full pricing advantage.
Most home buyers are ignorant of the current market value. Hence, they may not purchase properties at the right price unless they use a buyer’s agent. Amusingly, a prudent selling agent might convince a prospective buyer to avoid hiring a buyer’s agent to save time. But that could be the wrong advice.
What are the roles of a buyer’s agent?
Whether an owner-occupier or property investor, you need a buyer’s agent to help you find suitable properties and secure the purchase. Buyer’s agents can help a prospective buyer in several ways during the buying process.
To begin with, the right resources to search for suitable properties in the local market. They can also use their local knowledge of the current market value to set the right purchase price and negotiate the best deal. A buyer’s agent can also help property investors to find off-market properties with excellent market value.
Off-market listings involve properties that were only listed for private sale. Though those properties are not listed for sale to the public, a good buyer’s agent knows how to find them.
No doubt, buyers’ agents’ is all you need to buy the right property at the right price. They don’t just help you to find properties; they will assist you throughout the entire buying process from start to finish.
Truly, tens of thousands of prospective buyers understand the role of buyers’ agents in the purchasing process. However, not many of them know whether it is best to use a buyer’s agent.
Are you also at that confusing juncture? We have helped you to list out the seven most frequently asked questions about buyers’ agents to help you decide
Most Frequently Asked Questions on Buyer’s agent
1. Why Must I Use A Buyers’ Agent?
It’s simple. You need to hire a buyer’s agent to get the best deal possible in the local market.
Typically, real estate or selling agents are out there to ensure sellers get the most profit from every property sale. They already have the wits and strategies to maximize profit for the sellers and themselves. And they are looking for the next novice buyer to enter their traps.
That is why you need a buyer’s agent to work in your best interest throughout purchasing. Have you ever wondered why buyers’ agents are also called buyers’ advocates? It’s because they represent the best interest in the real estate market.
Buyers’ agents are licensed to help you secure the best property purchase possible. To deliver a perfect job, they work hand in hand with other licensed buyer’s agents to ensure you get the perfect property at the lowest sale price possible.
A prolific buyers’ agency works with other real estate professionals such as real estate attorneys, home inspectors, appraisers, and more to ease the buying process.
Since buyers’ agents are buyers’ advocates, they will represent you excellently at every stage of the purchase process. As a result, they will help you save time and money while getting you the right property.
2. How Do Buyers’ Agents Get money, And How Much Do They Charge?
Buyers’ Agents operate on one of the two fee structures – a fixed fee or commission based (i.e., a percentage of the purchase price). Each buyer’s agent has their preferred payment structure. Before signing the buyers’ agents’ agreement, you must discuss it with them.
Whether your prospective agent prefers a fixed fee or commission based, they will likely charge you an amount upfront as an ‘engagement fee’ before they could commence the property hunt and be reimbursed for the time, with the payment due when the contract goes unconditional.
3. Who Pays The Buyers’ Agent?
The buyer pays the buyer’s agent. They act as the buyer’s advocate. As discussed earlier, depending on the initial agreement, the buyer’s agent may request a fixed fee or commission on the property purchase.
The buyer’s agent fee applies regardless of whether the property is sold privately or through a licensed real estate agent.
4. Can A Buyer’s Agent Contact The Actual Property Seller?
The buyer’s agent can only contact whichever individual is advertising the property for sale. Of course, it could be the actual property, but in most cases, it is the responsibility of sales agents.
Real Estate Agents are licensed professionals qualified to represent owners who want to sell real estate properties. The buyers’ agent will negotiate with the real estate agent in charge of the property sale on behalf of the vendor.
If the property owner wants to advertise and sell the property without engaging in a licensed real estate agent, the buyers’ agent will have no choice but to relate directly with the owner.
5. Can buyers’ agents Conduct Appraisal or Valuation?
It depends. Typically, buyers’ agents work hand in hand with other real estate professionals like appraisers, home inspectors, and more. Hence, they will contact them when the need for the services arises.
If you work with a buyers’ agency, the firm would have some in-house market appraisal. In other instances, the buyer’s agent will prepare a detailed market appraisal for property buyers regarding the property in view. That will ensure buyers know the property’s current market value without relying on the seller’s price expectations.
A buyer’s agent can attend a valuation. However, there is no requirement for that activity.
6. Can A Selling Agent function As A Buyers’ Agent?
The answer is NO.
It’s a red flag if the buyer’s agent you are about to hire also doubles as a selling agent . the reason is that a buyer’s agent that works for vendors will not negotiate with the buyer’s best interest at heart. And that may cause more money than necessary.
Whether you want to buy a home or investment property, a buyer’s agent working as a selling agent will not find you a suitable property. The best is to look for property buyers’ agents that only advocate for buyers.
7. What Do Buyers’ Agents Bring To Closing?
Buyers’ Agents can negotiate the lowest sale price possible on a property due to their experience in negotiation and auction bidding. In addition, since they are professional and unemotional, they will prevent you from falling for the tricks of real estate agents.
Finally
A Buyers’ Agent will work with you with due diligence to assist you in purchasing a property that suits your needs. In addition, they will conduct pest inspection activities to ensure they complete all the necessary checks before you sign the sales agreement.