What is a Buyer’s Agent?

A buyer’s agent is a licensed real estate professional who represents the buyer during the home buying process. A real estate agent or REALTOR® can be either the buyer’s agent (sometimes known as the buying agent) or the listing agent depending on the transaction.

Keep in mind that real estate agents can represent more than one client at the same time. So you may encounter a buyer’s agent who’s also representing a seller as their listing agent. This could take place at the same time they’re working with you.

Buyer’s agents are legally obligated to protect their client's best interests. They should exhaust every effort to find homes for you to view, submit offers to listing agents and negotiate the most favorable purchase contracts.

Exclusive vs. Transaction Broker

When it comes to real estate transactions, there’s a big difference between having an exclusive agent verses transaction broker. With an exclusive agency, your real estate agent works only for you in the real estate transaction. Their one job is to look out for your best interests.

A transaction broker is when a single real estate agent works for both the buyer and the seller in a real estate transaction. Though not unheard of, wouldn’t you rather have your own representation?.

Some people worry that transaction brokers can potentially lead to a conflict of interest. This is because the agent must work to balance the needs of both the buyer and the seller at the same time. Due to possible issues with conflict of interest, it may be a difficult line to walk.

How Can A Buyer’s Agent Help In The Home Buying Process?

When you enlist the help of a buyer’s agent, you can expect them to assist with several aspects of the home buying process.

Find Properties To View

Your buyer’s agent can help direct you to properties that may be a good fit for your needs. They’ll ask you questions to get a good sense of what you’re looking for then help ensure you don’t miss any properties that may be a good match. Your real estate agent can also give you access to the MLS database, which contains all the homes for sale in a given area.

Schedule Viewings

Once you find homes you’d like to see, your buyer’s agent can schedule viewings with different listing agents. They’ll also inform you of any open houses that may be worth attending.

Submit Offers

When you find a property you want to purchase, your buyer’s agent can help by writing and submitting offers on your behalf. This step in the home buying process involves a lot of paperwork and legal jargon, so having an experienced professional on your side can be a big asset.

Negotiate With The Listing Agent

Often an offer from a buyer is met with a counteroffer from the seller. In this case, your buyer’s agent can negotiate the sales price and any contingencies or other terms in the contract. You should be able to count on your buyer’s agent to have your best interest in mind and give you their honest advice and opinions on your offer and any counter offers you receive.

Manage Your Paperwork

Buying a home means keeping track of a lot of important documents. Your buyer’s agent should stay on top of your paperwork so nothing important gets overlooked. This paperwork can include your:

Make Recommendations For Other Real Estate Professionals

Before you can close on your new home, you’ll need to hire other real estate professionals. Your agent can put you in touch with people in their network including mortgage lenders, home inspectors, terminate inspectors, well and/or septic inspectors, pool inspectors, insurance professionals, maintenance professionals, lawn maintenance people, real estate attorneys (if necessary} and even movers and professional cleaners. If your buyer’s agent is experienced, they should be able to recommend professionals they know to be reputable so you can be sure you're working with people you can trust.

How Does A Buyer’s Agents Get Paid?

You will enter into a Buyer’s Brokerage Agreement before touring homes that outlines the details of compensation. 

FAQs About Buyer’s Agents

Let’s look at some frequently asked questions about buyer’s agents.

Can I stop working with my buyer’s agent?

If you determine that your real estate agent isn’t meeting your needs, you may be able to end your professional relationship with them in favor of another agent.  However, before you do, make sure you aren’t violating the terms of the buyer’s agency agreement you’ve signed.  It is best that any prior relationship is terminated via email or at least via text prior to starting a new relationship with a different buyer’s agent and signing a new buyer’s brokerage agreement.  (This is not legal advise).

What is a buyer’s agent fee?

A buyer’s agent fee is the commission a buyer’s agent makes when they help someone purchase a home. Compensation is outlined in the buyer’s brokerage agreement.

Can a seller refuse to pay a buyer’s agent?

When you buy or sell a home, the purchase agreement outlines who’s responsible for paying agent commissions.  Although all commissions are negotiable, in most cases, the buyer’s agent’s commission can be negotiated into the contract to be paid by the Seller at closing directly through the title company upon successful closing.  The buyer’s brokerage agreement which is required to be signed by the National Association of Realtors prior to your first showing will outline the details on how this works. 

Are buyer’s agents worth it?

As with anything, working with a buyer’s agent has benefits and drawbacks. In most cases, using a buyer’s agent has more pros than cons for home buyers.

The Bottom Line

A buyer’s agent is a real estate agent who represents a buyer during the home buying process. Buyer’s agents can assist with several aspects of the home buying process – from finding houses to view, to scheduling viewings, to submitting offers and negotiating with the listing agent.

Working with a buyer’s agent can be beneficial for home buyers because these experts are highly knowledgeable in real estate, and their job is to look out for your best interests throughout the home buying process.

Agent certifications

There are also separate designations and certifications that allow agents to work with specific buyers (or sellers), or work toward a particular real estate need — similar to how doctors and lawyers have different classifications.

Many designations are affiliated with the National Association of Realtors, and an agent must complete coursework and sometimes an exam to earn such a classification. Some standard designations helpful for buyer agents are:

What will a real estate agent do for me?

You may wonder how a real estate agent can benefit your home-buying experience. Here’s how they’ll help during every step of the process:

Your agent will find the perfect house

Real estate agents are deeply embedded in their community and know about the local housing market. They follow real estate trends in the area and hold access to the MLS database, which is vital in finding specifics on newly available homes.

Most importantly, though, they understand each client’s specific needs and can leverage their network to find the perfect house. Many agents work together to help buyers and sellers. Your real estate agent may learn about a house becoming available and get you in to see it before others. Or your agent may receive details about the market in a specific neighborhood you wouldn’t be able to find on your own.  These are things a buyer would never know by just searching and making the phone call themselves.

Once you find a few homes you’re interested in, your agent will coordinate showings and act as a second set of eyes on the property. They’ll confirm you don’t miss anything, such as signs of damage or pest infestation, and ensure listing agents answer your questions. They will also work with the sellers to get all appropriate documentation, such as disclosures or inspection reports — things you might not have known existed.

Your agent will present a strong offer

You’ve found the perfect house, and now it’s time to move. Here’s where a trusted real estate agent can save you time and keep you from missing out on your dream home.

Before agents write an offer, they will research comparable sales in the area, otherwise known as “comps,” to verify the listing price is fair and to give you a better idea of a good offer. The best way to set yourself up for success in this stage is to ensure the agent has all relevant information from you and the listing agent. That includes your maximum offer price, anywhere you can be flexible, and if there’s any competition on the house.

Once you’re ready to make an offer, your agent will determine if it’s as strong as possible. They will instruct you on every necessary document so you don’t waste any time and they will set the timeline for the entire process. They may also recommend an escalation clause if there might be a bidding war.

If the sellers return with a counteroffer, the agent will be your best advocate, negotiating for a reasonable purchase price.

Your agent will walk you through the transaction

When the offer is accepted and a closing date is set, your agent becomes the first line of defense to get ahead of any potential complications. They help coordinate your home inspection and liaise with the listing agent for any problems in the report. They remain your strongest advocate, making sure the sellers fix any issues — or at least compensate you fairly for them.

While agents aren’t loan originators, they may introduce you to one and help you keep track of how your mortgage loan application is progressing. The financing process can be very confusing and often burdensome. Your real estate agent will be invaluable in answering your questions and ensuring you’re treated fairly. They will also educate you on your home insurance, which you’ll need to secure your loan and point you in the right direction to find the best policy.

Finally, your agent will affirm that you are sticking to the timeline they set when creating your offer. Their priority during this stage is for all parties to meet their deadlines, so you can hit your closing date and move into your home as soon as possible.

Your agent will be next to you at the closing table

Within 24 hours of your closing, your agent arranges the final walkthrough of your new home. This is a final step to ensure the property is clean and that any repairs you and the seller agreed upon are completed. The agent will also check that no new damage to the property has popped up.

On the closing day, your agent will be there for moral support and to answer any questions. The title company handling  the closing will likely explain everything you’re signing, but if not, your agent should have the answers.

Your agent will always be your biggest advocate

We know we mentioned this already, but it’s worth saying again: Your real estate agent will be your biggest advocate throughout this process. If any surprises or issues appear, your agent will break down all your options and then go to bat for you to fix them. If you want to walk away, your agent will explain what that means for your earnest money and how best to do it. If you’re overwhelmed, your agent will answer your questions and help put your mind at ease.

What if I don’t have an agent?

In short, you’ll have to do everything mentioned above by yourself. But here are some specifics.

You may miss out on the right home

There are plenty of websites showing home listings, but they aren’t always accurate. Real estate agents have access to their own network of contacts and the MLS database, which has updated listings.  That means an agent can tell you if a home is already under contract and save you valuable time in the home search. They can also find homes you wouldn’t be able to find yourself and can get you in early to beat the competition.

You’ll have to do all the legwork

There is a lot of paperwork involved in a home transaction, but that’s not even the worst of it. Without a real estate agent, you’ll have to coordinate your showings, reach out to listing agents, write your own offers, find recommendations for inspectors and lenders, know what inspections are needed to ensure piece of mind moving forward and for insurance purposes and negotiate on your own.

If you have a real estate background, that might not seem too difficult. But if you don’t, you might miss specific details or let items fall through the cracks.

You could lose money

If all your I’s aren’t dotted and T’s crossed, that might mean lost money down the road. Maybe you didn’t include an inspection contingency and must walk away after the home inspection. That could mean you lose your earnest money. Perhaps you fell behind on the timeline, and the seller had a “time of essence” clause in the contract.  Again, you could lose your earnest money. Or maybe an issue with your loan application and financing falls through.  Depending on your contract, that could mean the loss of your down payment.

After all, this is someone you will hopefully have a long-term relationship with. According to the NAR, 91% of recent buyers said they would use their agent again or recommend them to someone else.

Once you find your trusted agent, you’re on your way to finding the perfect house. And since you now better understand their role, agents should make the process a little more straightforward and less nerve-wracking.

What is a buyer’s agent?

First, let’s spell out the basics. There are two sides to every real estate transaction: the buyer’s side and the seller’s side. Many agents help both buyers and sellers with transactions, but some agents specialize in handling one party or the other.

Seller’s agents represent sellers — that is, the home the seller is listing. These are also called listing agents. On the other side of the transaction, buyer’s agents represent buyers in seeking and purchasing a home.

What do buyer’s agents do?                   

Buyer’s agents are there to advise, guide, and navigate you through the process using their licenses and expertise. Their supporting role for buyers typically includes:

  • Helping you make your wish list, a realistic collection of home characteristics you would like to shoot for within your budget
  • Identifying homes that fit these qualities, and taking you or directing you to see them
  • Landing on an offer price, writing your offer, and taking it to the seller’s agent
  • Advocating for your best interests in the sale, including on price and other contract negotiations
  • Managing the transaction throughout the process
  • Negotiating repairs or price adjustments that may be feasible as a result of appraisals or inspections
  • Completing the final walkthrough before you get the keys
  • Standing by for any necessary advice and support at the closing table
  • Ideally, handing over the keys with a smile, a warm congratulations, and an offer to take that first photo of you in front of your new home!

 

This is document is for informational purposes only and can change at any time without notice and should not in any way be construed as legal advice.