Why Do You Need A Buyer’s Agent?


When looking for a home, many buyers wonder, “Can’t we do this alone?” Is hiring a Real Estate Buyer’s Agent necessary?” The answer is yes; you “can” do it alone. No law prevents you from purchasing property without the assistance of a professional Real Estate agent. You can look for houses, schedule showings, and even negotiate independently. (although, in some localities, the actual contract for purchase will need to be drawn up by an Attorney). The real question may be, “Do you want to go alone?” The best guide to finding buyers agent Sydney.

Many first-time homebuyers believe that by using a Buyer’s Real Estate Agent, they will be required to pay a Broker Fee. In almost all cases, this is not the case. The seller, not the buyer, pays the Broker Fee to sell a home.

If you decide to “go it alone,” your options will be limited. The only homes you can buy without using an agent are “For Sale By Owner” (FSBO), which comprise a small percentage of the market. These homeowners have decided not to use an Agent to sell their homes for whatever reason. It could be because they believe they can get a better return on their investment by not paying a commission, or it could be because no Agent would take their house listing at the absurdly high price they believed their home was worth.

Many real estate analysts have discovered that most FSBO homes sell for the same or higher price than those listed by agents. How do you truly know how much the home is worth, and where will you get the data that will allow you to analyze the most recent home sales for that model, tract, and area? Do you want to accept the risk for a few thousand dollars? You must decide whether the house is worth the asking price, which you cannot do unless your agent researches you.

Too much money is at stake to make a “seat of the pants” decision. In this case, you must either obtain an independent appraisal to determine a reasonable price range for the property or develop your value determination. Is this something you have the time and ability to do?

Once you have been entered into the MLS system, an Agent can automatically send you profiles of all the homes that meet your criteria via email. Once you have received all of the homes available in your initial email, the MLS system will automatically send you new listings that match your criteria. If you are concerned about an Agent constantly nagging you on the phone, you “can remain anonymous” and provide the Agent with only your email address.

When you see something that looks promising, contact the Agent. It’s as simple as that. If you’re serious about buying, you’ll want to be the first to know when a house hits the market. Unfortunately, the strategy of approaching the Listing Agent usually does not save any money. The seller will still pay the commission agreed to in the listing contract.

Typically, when the seller lists the property, the seller agrees to pay the listing agent a percentage of the home’s sales price. This percentage is not fixed and, by law, is always negotiable. When the agent lists the property on the Multiple Listing Service, which alerts all other agents in the area that the property is now for sale, he will offer them an incentive to sell his property; typically, they will provide half of the commission rate they have negotiated with the seller if not more.

This incentivizes the Buyer’s Agent to show the Seller’s listing to his buyer and thus earn his living. Suppose you go directly to the Listing Agent. In that case, you risk getting no representation because the Listing Agent must first represent the seller and be honest and forthright with both parties, which is not in your best interests. In a few states, An Agent cannot legally represent both the Seller and the Buyer, and with good reason.

In most cases, the seller’s agent will tell you that using him as your agent to purchase his listing will save you thousands of dollars, but most of the time, he will not be representing your best interests when it comes to making an offer on the property. The bottom line is that he may have cut you a few thousand dollars off his commission to give to you.

Still, you will not have adequate representation without your own Buyers Agent. You will almost certainly pay mo. After all, as the Seller’s Agent represents the seller’s needs, he also serves his best interests, as his commissions are usually based on a percentage of the home’s purchase price. It’s human nature that the higher the price he gets for the house, the more money he keeps in his pocket.

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