Buyers Agent, Have One On Your Side
What is a buyers agent? Why should I have one?
Today's article is about why you should always have a buyer's agent. It is important to have someone on your side who represents your fiduciary interests.
Abraham Lincoln said, "a man who represents himself has a fool for a client." Honest Abe wasn't talking about real estate, but he could have been. Buying a home without representation can be a very costly mistake.
Myth: I'll save money.
When a homeowner lists a home with a real estate agent they already negotiate both realtors' commissions. Six percent is pretty standard: three percent for the listing side, three percent for the buyers side. If there's no buyer's agent then the listing agent keeps all six percent. There is no savings. The buyer's agent makes that pre-negotiated fee work for you instead of the seller.
Myth: I can negotiate myself.
Part of my job is negotiating: price, terms, inspections, hand money. I can't just pull numbers out of the air. I have to back up any offer with proof that what I offer is fair and just to be more likely to be accepted. Three weeks ago I negotiated $19,000 off the price of a home, even in this insane seller's market, because I backed up my offer with proof that the listing was overpriced because real estate agents have access to data that the average person does not and we know how to interpret that data.
Myth: Realtors just want to make more money.
Well, this is our job. Would I have made more money if my client spent $19,000 more for the house that she loved? Yes, but a realtor is a fiduciary. A fiduciary is obligated by law to get their clients the best price with the best terms possible. My reward is not making more money, my reward is repeat business and referrals from happy clients. If you don't have a buyer's agent on your side, the listing agent only has an obligation to their clients, meaning that you are most certainly going to get a worse deal.