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I never heard the term until I came on this board. I thought it was for someone moving a long distance but apparently not?
I've bought 2 pieces of land, 3 rentals, and 5 single homes. (sold most but that's not what I'm asking about).
All in NE PA, total 3 different counties. Never used a buyer's agent.
Why use a buyer's agent? What's the advantage? Why use one?
The question is why NOT use one?
It costs you absolutely ZERO and *should* end up saving you something.
It certainly makes the lookie- loo phase simpler.
Just choose them well and (more importantly) get an attorney first.
okay, now I'm confused. People are talking (posting) about paying the 3%.
That's not free!
My approach has been walk into a real estate office, say I'm looking for a house-going to be working at the hospital.......etc.
I get connected with a realtor.
Granted, they're working for the seller but working for the seller means finding a buyer.
Using a buyer's agent will definitely cost you money, come on. it isnt free!
The reason people prefer using a buyers agent is for time, convenience and knowledge. Some areas, I agree, are easier than others - buyers can just shop around on their own using Zillow, redfin, etc - but other areas where there are tons of properties and multiple agents/realtors - a new buyer can feel intimidated and be more prone to getting fleeced by unscrupulous sellers..
We are buying a new home in the near future, and we are debating this issue right now. Both of us have bought homes before, so we are familiar with the process. For us, the value of using an agent is simply to help us access market comps so that we can feel confident about making an offer on a home based on what the appraisal will likely be. In my area, we have a lot of homeowners selling their homes for high asking prices, and if someone not familiar with the area assumes the asking price is fair - they may be paying too much. We dont want to be in that boat. One of my realtor acquaintances offered to be our agent for a 4% fee (we were told in my town, the standard fee is 5%).
The seller's agent always works for the seller, so they will never have the buyer's interest at heart. Some agents can act very shady - resort to playing games like "there is a higher offer on the home already from another buyer" just to get you to bid higher. With an agent, I think there may be more of a chance the seller will not only take you more seriously but will understand that an agent can access certain details about the listing/property history than the buyer can't. The buyer's agent is there to basically hold your hand when you see properties, make offers and negotiate the price. All the agents get paid at or after the closing. I agree its all about your personal preference, you can do fine without one - but when it comes to making a huge purchase like a HOUSE - wouldnt you want some piece of mind knowing an agent can go to bat for you through the process?
Using a buyer's agent will definitely cost you money, come on. it isnt free!
The reason people prefer using a buyers agent is for time, convenience and knowledge. Some areas, I agree, are easier than others - buyers can just shop around on their own using Zillow, redfin, etc - but other areas where there are tons of properties and multiple agents/realtors - a new buyer can feel intimidated and be more prone to getting fleeced by unscrupulous sellers..
We are buying a new home in the near future, and we are debating this issue right now. Both of us have bought homes before, so we are familiar with the process. For us, the value of using an agent is simply to help us access market comps so that we can feel confident about making an offer on a home based on what the appraisal will likely be. In my area, we have a lot of homeowners selling their homes for high asking prices, and if someone not familiar with the area assumes the asking price is fair - they may be paying too much. We dont want to be in that boat. One of my realtor acquaintances offered to be our agent for a 4% fee (we were told in my town, the standard fee is 5%).
The seller's agent always works for the seller, so they will never have the buyer's interest at heart. Some agents can act very shady - resort to playing games like "there is a higher offer on the home already from another buyer" just to get you to bid higher. With an agent, I think there may be more of a chance the seller will not only take you more seriously but will understand that an agent can access certain details about the listing/property history than the buyer can't. The buyer's agent is there to basically hold your hand when you see properties, make offers and negotiate the price. All the agents get paid at or after the closing. I agree its all about your personal preference, you can do fine without one - but when it comes to making a huge purchase like a HOUSE - wouldnt you want some piece of mind knowing an agent can go to bat for you through the process?
You should not have to pay a Buyers Agent in most cases. 4% (5% the Norm)? In most cases the Buyer's Agent gets paid out of the commission that the Listing Agent has negotiated with the Seller. It is called a "Co-Broke" (as in Cooperation). The Listing Agent offers the Co-Broke both as a means of enticing other agents who have buyers to bring the buyer to this property and to alleviate some of the work that the Listing Agent would have to perform (escrow, inspections, loan qualifications, etc.) themselves. I realize in New York most of the work is done by attorneys, not agents, but in other parts of the country agents do most of the work from negotiating the deal, writing the contract, tracking the escrow/title work and guiding the client through all of the due diligence required to insure a smooth sale & close. Most Listing Agents will gladly split their commission (Co-Broke) so that they can spend their time getting the next listing. In some places of the country, a Listing Agent cannot act as a "dual agent" reducing their value to both parties.
You are correct, it is not free. But the Listing Agent has already negotiated the commission with the Seller (as in "I will pay you $X to sell my house") before the Buyers Agent and Buyer ever walk through the door. No Buyers Agent and the Listing Agent keeps the total commission, the Buyer doesn't save, the Seller doesn't save. Go to a new home builder without a Buyers Agent and ask for a 3% discount. When the sales person stops laughing he/she will politely tell you NO.
The (commissions are) paid (from the net of sale proceeds that) the seller (receives from the buyer).
The listing agent splits the total commission with the agent representing the buyer.
I used a buyer's agent for the first couple of times I bought a home. This time around, DH had experiencing buying as did I. We knew what we were wanting and what we wanted to pay, and when we found the house we wanted, we made our offer to the seller's agent. I don't see how a buyer's agent would have been helpful at all. We got the place for significantly less than the asking price, and I can't help but wonder if the seller's agent was willing to charge the seller a little less commission to help the deal go through, since he did not have to split the commission with anyone.
Anyway, if you are an experienced buyer, then I don't really see the benefit of a buyer's agent. We certainly did not miss using one.
I can't help but wonder if the seller's agent was willing to charge the seller a little less commission to help the deal go through, since he did not have to split the commission with anyone.
okay, now I'm confused. People are talking (posting) about paying the 3%.
That's not free!
My approach has been walk into a real estate office, say I'm looking for a house-going to be working at the hospital.......etc.
I get connected with a realtor.
Granted, they're working for the seller but working for the seller means finding a buyer.
I agree with you! -- I think this whole 'Buyer's Agent for a fee' is simply a marketing variation on what you can get from any competent Realtor, who makes a living out of finding homes for potential buyers ... and getting paid half the commission.
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