One of the biggest mistakes made by a new or veteran home buyer is to purchase a listed property without the use of a buyer's agent. Many buyers incorrectly believe that if they don't use a buyer's agent they can get a discount in lieu of paying the full commission to the listing agent. This is almost always wrong! The seller enters into a listing agreement with the listing broker for an agreed upon amount or percentage. Once the property is listed in the MLS, that fee, is shared with the agent who sells that property. If the listing agent sells the property, they keep 100%. That means not only do you not get a discount equal to the shared fee, but you also are letting the seller have an advantage over you in the negotiations. On the other hand, having your own buyer's agent can save you a bundle.
Buyer's agents are agents who work with home buyers to look out for their best interests and get their client, you the buyer the best deal. They are paid by the seller or builders listing agent but owe no loyalty to the seller in negotiations, only their client, the buyer.
Here's an example. Let's say that you are in the market to buy a very a very specific car and walk into a dealership to find one. Guess who those friendly sales people work for? The dealer of course. They're all trying to get you to buy using every tactic in the book. Do you feel comfortable? Of course not.
Now, what if you could hire an independent consultant to find you the vehicle you are looking for from among all of the dealers in that region. Someone to handle all of the negotiation, at your direction. Someone who knows the market and the costs associated with this vehicle as well as how long a dealer typically takes to sell this car. All of this information is vital to getting the best deal. To get all of this at no cost to you, you simply sign an agreement with that individual that outlines the following:
That the consultant is to look out for your best interest (they are legally bound to do so).
You agree to allow your consultant to be paid a pre-determined fee from the dealership in which you decide to buy.
That the consultant will help you find the best deal. Performance based compensation. If they don't find you what you want they don't get paid.
You agree to work exclusively with that consultant. (This ensures that there is no pressure on you to buy because that consultant knows that they will eventually be rewarded by their efforts to help you.
You agree to buy from dealerships that pay your salesperson a finders fee.
Now, substitute the car for a house and the consultant for a real estate buyer's agent and you've
accomplished the same thing, which in real estate is known as buyer's agency.
Services that Buyer's agents offer to their clients:
The original purchase price of the house.
Evaluating improvements that the sellers may have made.
Comparative market analysis for similiar houses in the neighborhood.
Knowledge of their local market and experience negotiating the best deal for their client.
Knowledge of special promotions and buyer's incentives.
Information on property taxes.
The average drop in list price to sold price and the average days on market.
Introduction to reliable mortgage lenders, home inspectors, closing attorneys, etc.
If new construction they can keep you up to date on the status of your home as if goes
through various stages of completion.
You worry about deciding on the perfect house....they take care of the details.
Thomas Tolbert
Keller Williams Realty
Office 912-232-8580
Direct (Best way to reach me) 912-308-6839
