Q:What is a Buyer's Agent?
A: A buyer’s agent is a licensed real estate agent who has agreed, orally, implied or via contract to represent a buyer’s interest in a real estate transaction. By becoming a licensed professional, a buyer’s agent knows how to communicate and negotiate with an agent who represents a seller. When interested in a property, a buyer who has an agent can obtain information about a property and arrange to see it without any pressure or expectation from the seller’s agent. In fact, a buyer with an agent maintains complete privacy and can view and make a decision about a property in confidence. Name, background or personal information, income, history of a buyer are not given to a seller’s agent for any reason. Try calling a seller’s agent to inquire about a property without giving your name, you won’t get much information if any. Other benefits include the ability to determine the type of property you need, neighborhood specs, property value, excellent loan officers, home inspectors and real estate attorneys. If I don’t have an agent, will I lose anything? The answer to this question can only be determined by you personally. It is up to you as a buyer to figure out if you want to take a shot at it alone, or if you need someone to act on your behalf. While purchasing property with an agent takes time, doing the research, writing a contract and determining property value on your own will take more time than you may be willing to invest. Making sure a real estate transaction is handled properly is a full time job. Buyer’s agents are not customarily paid by buyers, they are paid by the commission contracted for a buyer’s agent by the seller. Someone once asked me if in fact someone decides to buy real estate without an agent, if in fact they could deduct the portion of the commission set aside for a buyer’s agent from their purchase price. Interestingly enough, when a seller sets aside money for commission payments, they are bound by contract to pay that amount. When you contact a seller’s agent to purchase a property without an agent, you don’t gain room to negotiate price based on that fact because 1)you have no idea about the amount designated, 2) the seller’s agent will likely have to assist you with the transaction and will therefore become your implied agent and collect the commission for both sides [buyer/seller]. That being said, feel free to determine what would work best for you.
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