Do You Really Need a Buyers Agent?
Posted by Melissa Lee on Monday, July 19th, 2010 at 11:45pm.Your Advocate:
Your Realtor... Your Buyer’s Agent...
As a buyer, you don’t have to go it alone. Many Realtors specialize in representing Home Buyers and focus their time and energy in the Buying Market. Who better to have on your side than someone who specializes in understanding your Real Estate Goals, and Knows the Market, and can Guide you through the selection, contract, lending, and closing process? Bottom line is partnering with a good local Realtor in the buying process is a smart decision in this complex market.
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Does it cost me anything to work with a Buyer Agent? How are they compensated?
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I’m not comfortable with sharing my financing or personal information with a Realtor. Why should I?
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Why can’t I just call on several agents to see who gets the best house and deal for me?
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I found a For Sale By Owner (FSBO) and want to see it. Do I need an agent?
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How do I get the best Buyer’s Agent who I can trust will work for me?
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1. Who does a Buyer Agent work for?
The Buyer’s Agent works for and represents the Buyer. In Illinois, Buyer’s Agents have legal and fiduciary responsibilities to their client, the Buyer. We are bound by law to protect your personal information, especially from a seller and/or a sellers agent or say anything that may compromise your negotiating status.
Conversely, for sale by owners (FSBO), are not concerned with your real estate goals or what's in your best interest. They are only acting as a 'salesperson' to sell you their product. Same is true with builders of new construction. A builder or the builders sales staff is mainly interested in selling you their product.
In every purchasing situation, it's always smart to have a good Buyers Agent working in your best interests to negotiate, review the contract, the terms, the price, the title, the inspections, and to ensure seller 'promises' are being kept. This is especially important when or if complications in the sale arise.
2. Does it cost me anything to work with a Buyer Agent? How are they compensated?
This is the best part. Hiring a Buyer's Agent is generally free for Buyers. Here in Southwest Illinois, Sellers who have their home listed with a Realtor on the MLS pay and split the sales commission between their Realtor (the Listing Agent) and the Buyers Agent. Sellers and their Listing Agents realize they personally don’t have the resources to bring every buyer available in the market to their property so they market the home to other Realtors.
For Sale By Owners (FSBO's) and Builders who do not have their own representation with a Realtor at some point, realize they too do not have the resources to bring enough buyers to their property, so they market their properties to Realtors and want Realtors to show their property. They in turn offer compensation to the Buyers Agent. The FSBO may tell a buyer they'll get a better deal without a Realtor and this may be true, however, statistics prove otherwise.
3. I found a house that I want more information on. Can't I just call the Realtor on the sign or the Listing Agent?
When you hire a Buyer's Agent, they will have access to all the necessary information about the property. There's really no advantage in getting the information from the seller's agent.
Though if you do, just be aware when you contact the Seller's Agent / Listing Agent (the number on the sign), that Realtor represents the seller. If you allow the seller's agent to show you the house, then decide to buy that house through the Seller's Agent and never hired your own Realtor or Buyers Agent, you may lose your own undivided representation. When an Agent represents both the buyer and seller, this situation is called Dual Agency.
The SW Illinois Real Estate Team offers Dual Agency though we like to make sure you have our undivided attention. To make sure, one Realtor on our team will work with the buyer and one of us will work with the seller.
4. I’m not comfortable with sharing my financing or personal information with a Realtor. Why should I?
Your Buyer’s Agent can work in your best behalf only if they have the full picture of your Real Estate Goals, including any personal information that is appropriate for your purchasing decision. In Illinois, Buyer’s Agents have legal and fiduciary responsibilities to their client, the Buyer; We are bound by law to protect your personal information, especially from sellers and a sellers agent.
5. I viewed a house with one agent, and now want to see another house. The second agent asked me if I was ‘working with another agent’. Why are they asking me this?
The second agent is asking you if you’re working with another agent because, and this is very important; The Second Agent does not want to interfere with any CONTRACTUAL obligations you may have with the first agent. Again, in Illinois, Buyer’s Agency is a form of LEGAL representation.
6. Why can’t I just call on several agents to see who gets the best house and deal for me?
If you call and 'work with' several agents at the same time, your best interests are not being met and you're not getting the best out of you agent. An agent learns a lot about your Needs and Goals by working with you over a period of time and viewing and discussing properties with you. If you bounce from one agent to the next, it's not likely that ay one of them will fully understand your needs. Also, odds are the agents will realize you're not being upfront with them and will cease their relationship with you.
7. I found a For Sale By Owner (FSBO) and want to see it. Do I need an agent?
Absolutely! This situation is where, as the Buyer, you’ll want the best representation you can get. Keep in mind, the Seller has not listed with an agent and probably doesn’t have representation himself. Does he have the proper LEGAL contracts required for sales, how about proper TITLE review, and Illinois REQUIRED Disclosures?
The Seller is looking out for his own best interest. Who’s looking out for yours? Call your Buyer Agent before seeing a FSBO (or Auction) property. Your agent can also provide a valuation of the property and help you negotiate a fair price.
Also read, "Who does a Buyers Agent work for?" and "Does it cost me anything to work with a Buyers Agent".
8. I want to visit builder display homes and buy new construction or build. Why do I need a Buyers Agent?
A builder or the builders sales staff is mainly interested in selling you their product. In every purchasing situation, it's always smart to have a good Buyers Agent working for you in your best interests to negotiate, review the contract, the terms, the price, the title, the inspections, and to ensure seller 'promises' are being kept. This is especially important when or if complications in the sale or construction arise.
9. How do I get the best Buyer’s Agent who I can trust will work for me?
You’re about to enter into a ‘business’ and ‘legal representation’ relationship. Think of it as a recruitment process. Talk with several agents, check out their websites, do they have home search capabilities, do they have back-up resources to help you find houses when they aren’t available, do they seem interested in your real estate goals, how successful are they with negotiations, are they good at following up, how well do they communicate the purchasing process – offer, contracts, inspections,lending, closing…
A good buyers agent will want to take the time to review the 'buying process' with their clients and review real estate goals in detail and may recommend trusted lenders during the initial meetings. It's not an exciting part of the process, but it's important. As your Buyer's Agent, we want you to be fully prepared and armed with information prior to committing to a property or submitting an offer.
10. I want to make sure I’m getting the best house at the best deal. How do I make sure a Buyer’s Agent is diligently working for me?
Communication is the key. You and your Agent will have a Buyer Agency Contract that specifies the minimum services the Agent will provide. Any additional services you require needs to be clearly communicated. A good Agent will understand your Needs and Goals, and recommend available properties that meet your requirements. Be proactive in the process, search others and screen out suggested ones that don’t meet your requirements.
If at any point you’re not comfortable with the Agent’s performance or your situation changes, let the Agent know you’d like to modify or terminate your contract and/or relationship. You and your agent will both appreciate straightforward communication.
11. Will the SW Illinois Real Estate Team be my Buyers Agent?
The SW Illinois Real Estate Team is here to offer Buyers Agency services. We have systems in place that allows our buyers to see virtually every home in the market that meets their specifications. We will listen to your goals and needs and we will not rest until we find a home you love. With our team on your side and our systems in place, you'll be armed with everything you'll need for a stress free transaction.
We delight in making your real estate dreams comes true and we look forward to working with you.
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Melissa Lee, SW
Illinois Real Estate Team
ProPropertySearch.com
RE/MAX Preferred
618-972-0836
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