Why Have a Buyer’s Agent When Purchasing a House

Hiring a Buyer’s Agent is Beneficial!

Why Should I Have a Buyer’s AgentLots of consumers wonder why they should have a buyer’s agent when purchasing a home. They ponder whether there is going to be any value. If you are planning on buying a home, it only makes sense to hire a buyer’s agent.

There are multiple reasons to do so, many of which we will cover here. The fact is buying a home happens to be one of the most significant purchases you are likely to make in your lifetime.

Having a professional on-hand to look out for your best interests is essential. A buyer’s agent will help ensure that you get the best possible results—and will make it more likely that you can achieve the outcome you are seeking.

Unfortunately, some uneducated buyers think that going directly to the listing agent gives them a leg up on a purchase. Wrong! The listing agent works for the seller. They have an allegiance to the seller throughout the transaction. Their goal is to get the seller the most money possible. A seller’ agent can give you ZERO advice.

Quite often there are agents who practice dual agency – frankly a horrible situation for you and the seller. The real estate agent becomes a neutral party and cannot give either the buyer or the seller any advice. Completely moronic! When you are buying a home, there is incredible value in having someone working for YOUR best interests.

Here are 13 reasons why having a buyer’s agent is a must when purchasing a home.

It won’t cost you a dime.

That’s right. In most cases, hiring a buyer’s agent won’t cost you anything. No, buyer’s agents don’t work for free. But they also don’t get paid by the buyer. They get paid by the seller. Typically, the buyer’s agent and the seller’s agent will split the commission on a home sale.

The only situation where you might be expected to pay the buyer’s agent is if the property is FSBO—For Sale by Owner—and the owner refuses to pay the fee for the agent. You can generally avoid such situations, though, just by verifying that any FSBO home you look at is being sold by an owner who has agreed to pay the buyer’s agent.

Your agent should explain how commissions work in instances like this one. Keep in mind there might be a great for sale by owner out there that fits your needs perfectly. Part of your buyer agents job is to find one of these properties for you, should they become available.

If a for sale by owner won’t pay a commission, you can always deduct that amount from what you offer the seller. This is one of the many reasons why for sale by owners rarely save money.

The fact you won’t be paying any money out of your own pocket should be a significant reason for having a buyer’s agent.

Your agent will have a finger on the pulse of the market.

The real estate market is in constant flux. Unless you are a professional real estate agent, it is difficult to be fully aware of everything that is going on in your local market. That is why you hire a buyer’s agent—because he or she will have the market knowledge you need to get the best results from your purchase.

The agent can advise you on what kind of offer is likely to get you the home you want. Your agent can give you an informed opinion on where they see the local real estate marketed headed. Are prices rising or dropping? Are inventory levels going up or down?

Are you likely going to be involved in a bidding war because there are so few homes on the market? If that’s the case how can you put yourself in the best position to win?

The agent will take care of coordinating showings.

You only have so much time to spend looking at homes. Coordinating showings with sellers and their agents can be a juggling act, one that may become frustrating when inventory is tight, and homes are selling fast. An exceptional buyer’s agent will be flexible with getting showings coordinated. They will work around your busy schedule as best they can.

Your agent will figure out how to get you to the showings you want most when you want them. There are times this will be difficult like when the seller insists the listing agent attend.

A buyer’s agent will research the area and neighborhood.

A Great Buyer’s Agent is More Than a Taxi Cab DriverLots of buyers put a lot of focus on the home they are excited about buying but forget about their surroundings. How is the neighborhood? How is the city or town to live in? Are there any known problems nearby that may give a buyer second thoughts?

The best buyer’s agent will have a pulse on the local market. They will know the best attributes along with the worst. As a buyer, you may not be comfortable purchasing a home that was near a toxic waste dump. Tree Service A buyer’s agent will research issues such as this one and give you the lowdown.

A significant role of a buyer’s real estate agent is to perform due diligence on the house you’re interested in. They are there to protect you. A real buyer’s agents role isn’t to be a glorified taxi cab driver. If this is the kind of agent, you are working with FIRE them!

Your agent should be researching the house itself.

In most states, homeowners will fill out what’s known as a seller’s disclosure statement. Daytona Gutters In this document, the seller will tell a buyer what they know and don’t know about the property. An outstanding buyer’s agent will review this form with you. They will advise on anything that may need further clarification or possibly investigation.

For example, some sellers are notorious for not getting required building permits for remodeling work they have done in their homes. This is a big no-no that could cause problems for a buyer once it’s time for them to sell. A buyer’s agent will research at the local town building department when there are suspicions that permits have not been pulled.

Your buyer’s agent will advise you on what to offer.

One of the essential roles of a buyer’s agent is to advise you on what to offer on the home you’re interested in. There should be a detailed analysis done on what to offer. The conclusion should be based on comparable sales data of other similar properties. The focus will be on what sold.

The best real estate agents understand pricing well. They know how various amenities in a home will impact the ultimate value. When it comes down to it, this will be one of the most critical tasks a buyer’s agent will provide. The value will be based on real science, not some phony Zillow estimate. If you need to sell your home, we buy houses Winter Haven Fl.

You will live with what you pay for the home for years to come.

Your buyer’s agent can advise you on financing and even help you find a lender.

Buyer’s Agent Will Help Get a Reputable LenderThe agent you work with should have extensive knowledge of different financing options. He or she can put you in touch with lenders that will meet the financing criteria you are looking for. Understanding how to choose a lender is an essential aspect of the home buying process.

The agent will likely have one or more mortgage brokers that he or she likes to work with as well. So you can discuss your financing options with the agent and ask for recommendations on mortgage brokers.

One thing to keep in mind about financing—it is typically best to work with a local mortgage company when possible. Local companies know the market you are in better than those without any local presence. They tend to be easier to work with and more likely to be helpful.

Here are some helpful questions to ask the lenders you are interviewing. The last thing you want is a mortgage broker or lender that will take advantage of you.

Your buyer’s agent serves as your professional negotiator.

You may be great at negotiating, or you may dread the prospect. If you are a good negotiator, you know the importance of knowledge when it comes to getting the best results. Your agent knows homes and the market and can use that knowledge to negotiate effectively on your behalf.

If you don’t like negotiating, having an agent solves the problem. You discuss your offer with your agent, discuss terms, etc. They become your voice. You have the ultimate say, but can rely on the agent to do the talking and negotiating for you.

One of the most vital aspects of negotiating will likely come into play after the home inspection is done. If there are any significant inspection problems, you’ll want your real estate agent to help negotiate either a credit, price reduction or repair. Negotiating after an inspection goes with the territory for a buyer’s agent.

The agent will help you navigate emotional territory.

Real Estate agents are often associated with being therapists on the side. With so much riding on the line, it is normal to get emotional over a home purchase. You may really want the home. You may be stretching your finances to buy it. You may find the attitude of the seller irritating or even infuriating.

Business deals are best done with a cool head, so you need to avoid letting your emotions get the better of you.

Having an agent as a go-between is excellent for an emotional filter. Vent to the agent, and then move forward with razor focus.

Your agent has extensive experience looking at houses.

There is nothing that replaces real-world experience. While it is vital for you to do your research in the home buying process, you can only absorb so much information and advice. Fortunately, with an agent, you have someone who has viewed probably hundreds of homes. He or she can give you valuable insight into what a home lacks and what it has that is desirable. Sell my house fast Boca Raton Fl

They should be able to tell you what resale value will be like in the future. Will the home appreciate well or be a laggard.

The agent you work with will understand how to navigate real estate contracts.

You may be quite familiar with buying homes, or you may be brand new to the process. But even if you have done this seven different times, you are still going to benefit from having a professional guide you through the contract process.

Real estate contracts can be confusing and difficult to understand, which is why having a representative looking out for your best interests—who is not going to be baffled or overwhelmed with the contract process—is ideal.

Your agent will know about the various possible contingencies that can show up in a real estate contract—both those the seller might try to include and those that you might want to have based on your circumstances.

The agent can also write a proper contract on your behalf, which will make you look like a desirable buyer to sellers and their agents.

A buyer’s agent will have the connections you need to get through the purchasing process.

Skilled Buyer’s Agents Have ConnectionsThere are a variety of professionals that may be needed to complete your transaction. Instead of having to spend your time tracking these people down—like home inspectors, real estate attorneys and mortgage originators—you can leave the task to your agent.

He or she should have a list of trusted professionals that are known to be excellent to work with and can connect you with them immediately. The agent can be a fantastic resource for so many things before, during and after your purchase. Maybe you need a landscaper, painter, plumber or mover?

The best buyer’s agents will have connections and be able to provide you with a list of trusted contractors.

Your agent will ensure that the transaction remains on schedule.

While some delays in a home purchase can be unavoidable, many potential delays can be spotted and avoided before they occur. But detecting the problems early on requires awareness of how things are supposed to go, which only comes with experience.

Your agent will pay close attention to the transaction and remain on the lookout for possible issues. He or she is just as interested in making sure things go smoothly as you are, and should be well-equipped to keep things on track.

When delays do occur, which can happen, having an agent will help you minimize the delays. Your buyer’s agent will be able to identify where things went wrong and determine potential solutions based on prior experience.

You Should Hire a Buyer’s Agent

In the end, you have every reason to hire a buyer’s agent and no reason not to. Take the time to interview a few agents and take your pick. You will be happy you did. Here is a summary of what a buyers’ agent does for their clients. Look for a real estate agent who will do all of these things for you.

Additional Real Estate Resources For Buyers and Sellers Worth a Look

Don’t go to the builder’s real estate agent when buying a new home – see why you should never go to the builder’s representative when purchasing new construction. Hire a buyer’s agent!
The best steps to take when selling a home – take a look at some excellent guidance from real estate pro, Lynn Pineda, on the how to get your house sold quickly.
Does it make sense to sell my home now? – Petra Norris takes a look whether it makes sense to sell your home this year or not. What are the most important considerations?
Have a look at each of the above resources from other real estate professionals for more sound real estate advice.

Real Estate Branding Lab: Create Your Brand

Starting a career in real estate can be very rewarding. But it’s a popular occupation, and that means you’re bound to face some stiff competition. To help agents stand out from the crowd, we’ve created a 3-day Branding Lab. Each day you will be given a topic, a short tutorial video, and some quick homework assignments that can help you develop an eye-catching brand.

Let’s get started!

What is a Brand?
Simply put, a brand is a name you recognize. Think of a famous company. What stands out to you is what we define as branding. It may be their logo, a slogan, a mascot, even a theme song. Most importantly, all of these brand elements make you feel something—ideally, a sense of familiarity, affinity, and trust.

To illustrate, try this exercise: jot down the names of five brands that you use every day. Then, next to each company, write down whatever pops in your mind: a product, an image, a feeling, etc. When I think of Nike, for instance, I instantly picture the “swoosh” logo. When I think of Dunkin’ Donuts, I assure myself that “America Runs on Dunkin.” And when I see an ad for Nationwide, I instantly sing, “Chicken parm you taste so good.”

Our goal during this Branding Lab is to help you build your own brand that inspires the same reaction from your audience, making them instantly feel something positive and unique when they see or hear your company name.

Why Is Branding Important?

Branding is not new. We as humans have a natural inclination to gravitate to places that have a great brand or reputation. It’s why we choose to go to a local coffee shop (“My friend recommended this place”), or why we go to a mom-and-pop diner (“They have the best Italian food”).

However, something happened in the past 20 years that elevated the importance of branding: Digital marketing. The rise of the internet has enabled us to discover and experience brands more quickly and easily. We no longer have to visit a brick-and-mortar store and speak to someone to learn about a product. Instead, we can do it all from our computer or mobile phone.

As a result of this shift, your brand must also be accessible everywhere. Whatever makes you unique and special should come across wherever and however someone interacts with your brand. Whether it’s a website, social media account, or digital ad, your brand must establish the same emotional connection with your audience as you could through a one-on-one conversation. Today, most people won’t wait to speak with you in order to make a decision. Instead, this decision usually happens the instant they interact with your brand for the first time.

How to Create your Brand

Even if you’re a new real estate agent, you already have some kind of reputation. This may come from your first few customers, or how your friends and family view your real estate business. Start by asking everyone you know point blank what they think you do well, and what they think you do consistently. Once you have an initial sense of your reputation, you can build on that foundation to create a more cohesive brand.

After you get that feedback, you need to define your niche. A niche can be centered on a specific geographic area, property type, transaction type, or subculture. Whatever you choose, it should be something that you are an expert at (or aspire to become an expert at). Once you become an expert at something, you can differentiate yourself from everyone else and stand out to the people seeking out that expertise.

When defining your real estate niche, it’s important to focus on something very specific.. Many agents are hesitant to narrow their focus, fearing that if they say they’re good at one thing, the market will assume they aren’t good at anything else. But that’s not how branding works. Once you establish what you are really good at, the right clients will flock to you, and you’ll experience a ripple effect that allows you to transfer that perception of excellence to other areas.

Create Your Brand Homework

Now it’s time to create your brand. Complete the steps below to come up with a brand that you want to be known for.

Define your Niche

Read through our How to Find Your Real Estate Niche guide. Don’t be afraid to get specific. After you define your niche, do a litmus test. Run it by past clients, family members, friends, and co-workers. Make sure that it’s believable. If the people closest to you can’t picture that niche for you, then prospective clients will have a hard time being convinced.

Take our Brand Positioning Exercise

After you define your niche and pinpoint your specialty, run through our brand positioning exercise. This will help you create a concise internal message that will serve as the basis for all future messaging. Each time you or your team creates something consumer-facing, you will read it against this brand positioning statement to make sure it’s “on brand.”

Tomorrow, we’ll explore ways you can share your brand with your audience.