Why it’s important to use a buyer’s agent when shopping for a home

When you are house hunting, there are a lot of moving parts to keep track of. You’ve got to research home listings and schedule home showings. A real estate contract/purchase agreement will need to be drafted carefully. Eventually, you’ll need to negotiate with the seller and close on the home. Without expert help, these tasks can quickly become overwhelming, especially to a first-time purchaser.

That’s why it’s smart to partner with the right professional, right from the start, in the form of a real estate agent — specifically a buyer’s agent.

“A buyer’s agent is a licensed professional who represents the interests of the homebuyer. This person is different from a seller’s agent, also called a listing agent, who represents the interests of the home seller,” explains Alex Shekhtman, CEO/ founder of LBC Mortgage. “A buyer’s agent works with the purchaser to find suitable properties, negotiate the purchase price and coordinate the closing of the deal.”

Brandon Brown, broker/owner of BayBrook Realty in Southern California’s Laguna Beach, notes that there are several benefits to enlisting a buyer’s agent, particularly an experienced one.

“While it may seem easy to buy a home, there are so many laws, code issues, and pre- and post-negotiations to navigate that if you don’t have a knowledgeable professional on your side, you could end up with buyer’s remorse,” he cautions. “Like it or not, the seller will always be biased toward the sale of their home. That’s why buyers need protection to ensure they understand what they are purchasing and what they should know about the property during the transaction itself.”

The biggest advantage of recruiting an agent is that you have an advocate looking out for your best interests.

“Realtors and licensed agents are trained to negotiate on your behalf and seek out potential pitfalls that often don’t get disclosed but are discovered during the inspection period. Furthermore, good agents know the market’s momentum and can help guide you toward making the right offer on a home,” Brown continues.

Among the biggest perks of collaborating with an agent is their ability to save you time.

“Agents have extensive knowledge of the housing market and can more quickly help you find properties that meet your needs and budget,” Shekhtman adds.

Just be aware that a buyer’s agent will get a commission (percentage of the home sale). Typically, this equates to 5% to 6% of the sale price, but this amount is split 50/50 between the buyer’s agent and the seller’s agent. The good news is that the seller commonly pays the full commission, which means that the buyer doesn’t have to pay any out-of-pocket fees to their agent. However, the buyer may have already built this commission fee into their sales price.

The challenge for buyers is finding the right agent.

“If you ever post on social media that you are looking for an agent, you will likely get hundreds of responses rather quickly,” cautions Abbe Flynn, a broker associate with Ketcham Realty Group in Tallahassee, Florida.

To find the ideal agent, ask your friends and family for a referral to someone they’ve worked with and can vouch for. You can also meet with agents at open house events.

“Look for an agent who has years of experience representing buyers. Choose an agent you feel comfortable with and whom you can trust to have your best interests at heart,” Shekhtman advises. “Partner with an agent who is familiar with the areas where you are looking to buy a property. And be sure to ask your agent plenty of questions so that you understand their process and how they work.”

If their answers don’t make sense, “ask more questions. Some agents are great at talking, but not so great at following up,” Flynn says.

Additionally, be upfront about what your budget is and what your musthaves and wish-list items are for your new home.

“This will help your agent narrow down their search to properties that fit your needs best,” Shekhtman explains.