Pros/Cons on using a BUYER'S AGENT? (RE agent, commission, contract)
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I wasn't aware there was a difference between a buyer's agent and a real estate agent. Typically Real Estate Agents are licensed agents who can either be the agent for the buyer, seller, or both.
So I suppose if you could go into more detail about exactly what it is you're trying to find out, we could probably give you a much more beneficial answer.
I am confused too. A buyer's agent or real estate agent doesn't cost you a dime. It only cost the person selling the home. That is how they make their money. So, if they are telling you it cost you money to buy a house, then they are wrong. Go with somebody who has a license and is registered w/ the Realtor Association.
We recieved a flyer with our relocation package from an The Buyer's Agent stating their agency does not take listings and represent buyers only so there is no conflict of interest.
Here is a link to National Association of Exclusive Buyer Agents:
National Association of Exclusive Buyer Agents | NAEBA (http://www.naeba.org/index.htm - broken link)
I would say if you know the area well (schools, crime, sales history, etc.), and know how to negotiate, then you probably don't need a buyer's agent. If you are new to the area or state and are unfamiliar with local practices, it might not be a bad idea. It shouldn't cost you either way, as the seller pays the commission to your agent (YMMV). They may know something about the builder or area where you are looking that will give them an edge at negotiating, or know what things to ask for that you're more likely to get.
Cons? You get a buyer's agent who doesn't know how to qualify a buyer (figure out exactly what it is you need) and shows you 100 homes in one weekend.
A buyers agent is a large advantage in making sure the contract is prepared correctly and you are protected.
If you want to go in without an agent, because you're going to ask the seller to deduct the 3% (ranges) commission from the sales price, then that is another way to go.
Keep in mind the sellers agent can become your agent without you specifically authorizing it, at least as far as the commission goes. So if you intend to represent yourself, state that right away. Then you can negotiate to remove the buyers agent commission from the sales price, in essence getting a cheaper deal.
Another possibility is using the sellers agent, as the buyers agent. This creates a double commission for them, should they sell to you. They will be motivated to do so.
Personally I think it's always best to have your own agent representing you the buyer. Especially if you have not already found a specific house you want. You're unprotected without an agent, unless you have a solid base of experience about home buying, contracts, and what to protect yourself from.
I have just begun to research about Buyer's agents since I also did not there was a difference, it sounds like a good idea (in theory) so will keep it in mind.
My husband and I are contemplating relocating to another state and are not familiar with the city (Asheville). We plan on taking a trip late October only to see if we like the area and to check out neighbourhoods. If we do in fact think this is where we would like to be, then our next trip will be much longer.
I know what you mean about 100 homes in a weekend! Our first realtor where we live now (FL) showed us so many homes in one day we could not remember which was which, plus he kept showing us the same basic style of house. There are more stories about this guy, he sucked the big wahzoo!
My husband and I are both real estate appraisers. We are relocating to Huntsville, AL from CA and didn't want to go it alone, as we are not yet up to speed on local builders, neighborhood valuation levels, local RE laws & customs, etc. We're using a licensed RE agent who has her ABR (accredited buyer's representative) designation, so while she does list and sell homes, she will be representing OUR interests when we find a home to buy. We don't pay anything; she'll split the commission with the seller's agent. I wouldn't go into a new location without one. She's already given us valuable info only a local pro would have.
I think the poster wants to know about the difference between a EBA (Exclusive Buyers Agent) who never takes a listing and a Traditional Real Estate Agent with a buyer agency relationship (contract) with a buyer.
I am a Trad. I list sellers and help buyers. I have my share of desingations.
I think that my training and experience in listing homes helps buyers buy better and in selling homes helps sellers understand what buyers want in a property.
EBA's big beef with Trads is the potential for conflict of interest. Having a buyer who is listed with the brokerage, want to buy a house that is listed with the brokerage. EBA's can have two listed buyers interested in the same home.
Anyway, REP's argue about that and procurring cause a lot...there are no right answers, only good information.
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I'm using a buyer's agent now...
