Many people new to the real estate industry have no idea that there are usually two agents involved in every transaction. There’s the listing agent that originally listed the property and then the age of the brings the buyer, usually called the buyers agent. These agents split commission set forth in the listing contract by the homeowner or seller and their listing agent.
The same agent can conduct both sides of the transaction but there is a conflict of interest since the agent originally started working with the homeowner and not the buyer. You can see that if the listing agent also represents the buyer, there might be some confidentiality breaches and that agent is certainly not working in the best interest for the buyer. Remember, the goal for that agent was to sell that property, not necessarily to help the buyer get the best home.
#1. It’s FREE for buyers
Most people don’t even realize this but the buyer’s agent gets paid on half of the commission of whatever home the buyer chooses so it doesn’t matter which home you buy, your buyer’s agent will get paid and not by you. But yes, they are still working for YOU.
#2. They have key negotiating skills.
When an agent works just for the buyer some confidential information can be used as leverage in negotiations. For instance, if the buyer can afford a property but wants to offer less than full price because the home has been on the market for a while, the buyer can submit a preapproval letter for exactly how much they are offering. If the seller knows the buyer can afford more, they may not accept a lower offer but since they are unsure of the buyers financial status, they may be more likely to accept the lower offer. And this works in just about any negotiating strategy. There are things that the buyer knows that does not need to be revealed to the seller but can be used as leverage in negotiations.
#3. They may know something you don’t.
Just as a listing agent probably know something about the sellers and the house that you won’t, the buyers agent may know more about the area, the neighborhood, or the market than you do. This is very advantageous for you because if the agent thinks the home is overpriced for similar homes in the neighborhood, you can negotiate lower, or if they fill the home is underpriced, you might be getting a great deal but don’t know it.
Read More: Top 5 Things to Look for in a Realtor®
#4. They can find what you’re looking for.
The general public does not have access to most MLS databases like a licensed real estate agent does. Not to say that every listing will be on the MLS, but not every national real estate website like Zillow, homes.com, and Realtor.com will list all the properties depending on how they were entered. A real estate agent will have access to every single listing in the database and maybe even potential for sale by owner properties. This gives you access to all of the properties that might fit your search criteria. They can do the searching for you and then send you listings that match what it is you’re looking for.
Read More: 3 REAL Keys to Buying a Home
There is nothing like the qualified advice from an experienced agent. We’ve seen all types of homes, inspections, appraisals and reports and can offer our advice as to how to proceed. Navigating a real estate transaction can be frustrating but with someone there to guide you and help answer any questions along the way, you can feel more in charge and in control so you can make a wise and informed decision.