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Written by Erica Anthony | December 09, 2021
Image “You Are Worthy” by Tim Mossholder, licensed under Pexels
A lot of buyers aren’t impressed with agents finding houses for them anymore, since buyers can do that online. However, your buyer’s agent will also have access to MLS data (beyond what’s available on Redfin/Zillow/whatnot). They can deep dive into researching a particular house, its sales history, its neighbors/their sales histories, properties in the area, give you insights from broker remarks, tax records, etc.
Your buyer’s agent will get you in the door to see properties, along with all the legwork that goes into scheduling appointments and coordinating with sellers, occupants, and listing agents. They’ll do the research to answer your “Can you find out…? What’s the deal with…?” questions. They will point out things in each house that you may not have thought to consider. (Of course, all this is after your agent helped connect you with several local lenders to get you preapproved, and gave you insights on which lenders will look more favorable to sellers in your area, what questions to ask, what to look out for, etc.)
Once you find a house you like, your buyer’s agent will know the right questions to ask the listing agent and how to build rapport. Your agent will find out how to write the best offer terms for that seller. There are so many terms besides price the seller may be looking for, and a good buyer’s agent will uncover those out to help your offer win. They will also be the person the listing agent calls to share that the seller has 3 offers in hand already and has decided to review offers today instead of waiting until Tuesday. Believe me, you don’t want to miss out on that information.
Your agent will put together a comparative market analysis (CMA) for that particular house and help you come up with your desired offer price. They will also help you prepare the rest of your offer strategy (depending on what market you’re in, that could mean conducting a pre-inspection, writing an offer letter, offering more/less earnest money or converting it to a nonrefundable deposit, including or waiving various contingencies, throwing on an escalation clause, offering a rent-back, asking for seller-paid closing credit, having your lender check to see if you qualify for an appraisal waiver, etc).
When it comes time, your buyer’s agent will write up your offer, knowing which forms to include or exclude and the best way to structure everything for this particular property. Is it on sewer? Better make sure you will be allowed to scope the sewer during your inspection. Is it on septic? Better make sure you have the septic contingency for the right county included in the paperwork. Was it built before 1978? Don’t forget the Lead Based Paint addendum! Is the seller foreign? Very important to include that special FIRPTA form for escrow! Before you sign the offer, your agent will walk you through the paperwork, going over the forms in as much detail as you need, and answering all of your questions. The legalese can be difficult to read and you need to understand what you’re signing.
You will have the advantage of having your agent on your side through offer negotiations, inspection negotiations, and appraisal negotiations (if it comes in low). They will be the one to find you inspectors available at the last minute, they know which companies to call for the cheapest sewer scope, they know which companies will come out for free estimates and which contractors to avoid. They will be on-site to meet people and they’ll keep you involved even though you can’t get away from work in the middle of the day. They will spend hours with you on the phone explaining your options, talking you through the process, and using their experience to help you navigate how to proceed.
Your agent will know the best way to structure your inspection response, and what to look out for if the seller is doing repairs. Yes, sometimes they agree to do repairs! Even for new construction, your agent will be there to nitpick the builder (if things come up) so your new home is perfect. It’s super important that you have a buyer’s agent on your side because the listing agent wants what’s best for the seller, which is generally the exact opposite of what’s best for the buyer. Your buyer’s agent also knows your rights as a buyer, so they’ll make sure you have the opportunity to perform the final walkthrough and they’ll help you navigate any unexpected hiccups, like if something goes terribly wrong right before closing (it happens sometimes).
On top of all this, your buyer’s agent has the backing of their brokerage and all of the knowledge and resources that come with that. Many brokerages have relationships with law firms who have real estate lawyers available for consulting if something goes awry during the transaction. Your agent understands the potential liabilities in real estate and will help make sure you are protected – or on the flip side, if the seller does something nasty, they will help connect you to the legal resources you’ll need.
In addition to the above reasons for using a buyer’s agent: The seller has ALREADY signed a listing agreement with their agent. In the listing agreement, the seller has agreed to pay the listing brokerage X commission, and for the listing brokerage to share a portion of this commission to the buyer’s brokerage. Therefore the buyer’s agent commission is baked into the purchase price. If there is no buyer’s agent, then technically the listing agent gets that full amount of commission. You, as an unrepresented buyer, would not automatically be entitled to a “discount” or to keep the buyer’s agent commission for yourself. And even if you do manage to get a small discount, it is never worth giving up the ability to have your own representation.
And maybe the most important reason of all: a good agent will help keep you sane through the process, which can be long, frustrating, exciting, and confusing. They’ve done it before, they know how it works, they will make it easier for you.
Image “You Are Worthy” by Tim Mossholder, licensed under Pexels
A lot of buyers aren’t impressed with agents finding houses for them anymore, since buyers can do that online. However, your buyer’s agent will also have access to MLS data (beyond what’s available on Redfin/Zillow/whatnot). They can deep dive into researching a particular house, its sales history, its neighbors/their sales histories, properties in the area, give you insights from broker remarks, tax records, etc.
Your buyer’s agent will get you in the door to see properties, along with all the legwork that goes into scheduling appointments and coordinating with sellers, occupants, and listing agents. They’ll do the research to answer your “Can you find out…? What’s the deal with…?” questions. They will point out things in each house that you may not have thought to consider. (Of course, all this is after your agent helped connect you with several local lenders to get you preapproved, and gave you insights on which lenders will look more favorable to sellers in your area, what questions to ask, what to look out for, etc.)
Once you find a house you like, your buyer’s agent will know the right questions to ask the listing agent and how to build rapport. Your agent will find out how to write the best offer terms for that seller. There are so many terms besides price the seller may be looking for, and a good buyer’s agent will uncover those out to help your offer win. They will also be the person the listing agent calls to share that the seller has 3 offers in hand already and has decided to review offers today instead of waiting until Tuesday. Believe me, you don’t want to miss out on that information.
Your agent will put together a comparative market analysis (CMA) for that particular house and help you come up with your desired offer price. They will also help you prepare the rest of your offer strategy (depending on what market you’re in, that could mean conducting a pre-inspection, writing an offer letter, offering more/less earnest money or converting it to a nonrefundable deposit, including or waiving various contingencies, throwing on an escalation clause, offering a rent-back, asking for seller-paid closing credit, having your lender check to see if you qualify for an appraisal waiver, etc).
When it comes time, your buyer’s agent will write up your offer, knowing which forms to include or exclude and the best way to structure everything for this particular property. Is it on sewer? Better make sure you will be allowed to scope the sewer during your inspection. Is it on septic? Better make sure you have the septic contingency for the right county included in the paperwork. Was it built before 1978? Don’t forget the Lead Based Paint addendum! Is the seller foreign? Very important to include that special FIRPTA form for escrow! Before you sign the offer, your agent will walk you through the paperwork, going over the forms in as much detail as you need, and answering all of your questions. The legalese can be difficult to read and you need to understand what you’re signing.
You will have the advantage of having your agent on your side through offer negotiations, inspection negotiations, and appraisal negotiations (if it comes in low). They will be the one to find you inspectors available at the last minute, they know which companies to call for the cheapest sewer scope, they know which companies will come out for free estimates and which contractors to avoid. They will be on-site to meet people and they’ll keep you involved even though you can’t get away from work in the middle of the day. They will spend hours with you on the phone explaining your options, talking you through the process, and using their experience to help you navigate how to proceed.
Your agent will know the best way to structure your inspection response, and what to look out for if the seller is doing repairs. Yes, sometimes they agree to do repairs! Even for new construction, your agent will be there to nitpick the builder (if things come up) so your new home is perfect. It’s super important that you have a buyer’s agent on your side because the listing agent wants what’s best for the seller, which is generally the exact opposite of what’s best for the buyer. Your buyer’s agent also knows your rights as a buyer, so they’ll make sure you have the opportunity to perform the final walkthrough and they’ll help you navigate any unexpected hiccups, like if something goes terribly wrong right before closing (it happens sometimes).
On top of all this, your buyer’s agent has the backing of their brokerage and all of the knowledge and resources that come with that. Many brokerages have relationships with law firms who have real estate lawyers available for consulting if something goes awry during the transaction. Your agent understands the potential liabilities in real estate and will help make sure you are protected – or on the flip side, if the seller does something nasty, they will help connect you to the legal resources you’ll need.
In addition to the above reasons for using a buyer’s agent: The seller has ALREADY signed a listing agreement with their agent. In the listing agreement, the seller has agreed to pay the listing brokerage X commission, and for the listing brokerage to share a portion of this commission to the buyer’s brokerage. Therefore the buyer’s agent commission is baked into the purchase price. If there is no buyer’s agent, then technically the listing agent gets that full amount of commission. You, as an unrepresented buyer, would not automatically be entitled to a “discount” or to keep the buyer’s agent commission for yourself. And even if you do manage to get a small discount, it is never worth giving up the ability to have your own representation.
And maybe the most important reason of all: a good agent will help keep you sane through the process, which can be long, frustrating, exciting, and confusing. They’ve done it before, they know how it works, they will make it easier for you.
