Why You Need a Buyer’s Agent
Buying a home is an exciting time, especially if you’re a first-time buyer. But real estate transactions are complex and making a mistake could cost time, and worse, money. According to the National Association of REALTORS® (NAR), 88% of buyers purchased their home through a real estate agent or broker in 2020…and for good reason.
If you’re searching for a new home, here are just a few of the benefits you’ll experience when partnering with a professional buyer’s agent.
Buyer-specific representation
A buyer’s agent is legally bound to represent the buyer and their interests throughout a real estate transaction. Some buyers think that going directly to the listing agent gives them an advantage, but that’s a big misconception. The listing agent has a fiduciary duty to the seller, while a buyer’s agent serves as the buyer’s advocate. A buyer’s agent does everything possible to help their clients be successful, providing them with all the information necessary to make a sound financial decision.
Market knowledge
Unless you are a REALTOR®, you likely aren’t aware of everything going on in your local market. Think of it this way. When your car breaks down, you take it to the mechanic. When you aren’t feeling well, you make an appointment with a doctor. You seek expert guidance, right? That’s exactly why you hire a buyer’s agent. Because he or she has the vast market knowledge you need to navigate today’s market.
“Even if you purchased a home in the past, the landscape has changed from 10 years ago, or even a year ago,” said REALTOR® Heather Damerow with Heather & Elizabeth Homes, Berkshire Hathaway HomeServices, Tomie Raines REALTORS®. “How we present offers and what needs to be included in the offer to make it more palatable…it’s all different than it was in previous markets. If you don’t have that in-depth knowledge, your chances of writing a successful offer would likely be slim.”
Neighborhood expertise
A buyer’s agent can help sort through your wish list, making sure your wants and needs align with your budget. And once your criteria is established, your REALTOR® will help identify homes that fit those requirements. While you may think this is easy enough to do on your own, a professional agent goes above and beyond, providing up-to-date information on utilities, schools, zoning, etc., and performing due diligence on any house you’re interested in.
Damerow explains that buyers’ agents not only look at neighborhood comparisons to make sure their clients are getting the best value, but they also point out things that buyers may not think about.
“Maybe the property needs a well and septic inspection, or the municipality is considering putting windmills near the property, or maybe the home is part of an HOA and there is an assessment coming up,” she said. “Buyer’s agents put in the legwork to find out everything we can about a particular property to ensure our clients’ interests are protected.”
Negotiation skills
Real estate transactions have a lot of moving parts and there are many factors up for discussion—price, repairs, possession date, etc. When it comes time to negotiate, you want an expert in your corner. Even in a cordial, smooth negotiation, things can go wrong. A buyer’s agent handles hundreds of transactions in their career and their only priority is to get the home for the price and terms their buyers want.
Network access
There are several professionals involved in a real estate deal, including mortgage lenders, inspectors, title companies, etc. And during or after the purchase, you may need referrals for a variety of vendors like movers, plumbers, electricians, structural engineers, contractors, landscapers, and more. An experienced buyer’s agent should be able to provide several recommendations for professionals they have experience with.
“And most REALTORS® have a large network backing them up,” said Damerow. “There is power in numbers. If I run into an unfamiliar issue, I guarantee someone in my firm has experienced it and can help us problem-solve.”
Paperwork management
According to NAR, buyers in 2020 listed paperwork as the second most difficult step in purchasing a home, right behind finding the right property. From the initial offer and home inspection to closing contracts and titles, there’s a tornado of paperwork flying around and it’s best to have an expert on your side to review everything carefully.
“Does the initial purchase transaction line up with the final figures? Does the net result meet what you agreed upon? Your agent should look over every document with you to ensure it’s all as expected and that all contracts are working in your favor,” said Damerow.
Your emotional rock
Buying a home is an emotional process and at times, things can get stressful, especially in a competitive market. As REALTOR® Magazine says, “having a concerned, but objective, third party helps you stay focused on the issues most important to you when emotions threaten to sink an otherwise sound transaction.”
Because of the many services offered, most buyers believe having a trusted buyer’s agent on their side is invaluable. In fact, NAR found that 91% of buyers in 2020 would use their agent again or recommend them to others.
“We’re your tour guide throughout the purchase process,” said Damerow. “We lay out the expectations, establish the prospective timeline, and along each destination—inspection, appraisal, etc.—we check off the boxes and prepare you for the next stop. When it’s all said and done, the greatest feedback I can hear is that everything went smoothly. That is my goal, to make the transaction as stress-free as possible and to get my clients successfully to the finish line.”
For a list of experienced, local REALTORS® visit the Greater Lansing Association of REALTORS® website at www.lansing-realestate.com.