What Does A Buyer's Agent Cost?

The short answer is nothing.

When a seller lists a home with a broker they agree at the time of listing on the amount of commission that the seller pays to the listng broker at closing.  Let's say that you call the listing agent to see the property, you like the home, you make an offer and purchase the property. Great for the listing agent because they get the entire commission!  But if you as a buyer have a buyer's agent then they must share their commission with the cooperating broker (the buyer's agent).  It's that simple.  

Since the listing agent represents the seller they have an obligation to look out for the seller's best interest - not your's as the buyer.  If you were to go to court for example you surely would not want to use the same attorney as the guy who was suing you so why would you enter into a real estate transaction without being represented?  It's not that the listing agent is being greedy, it's just that they must represent their client, the seller, to the best of their ability.

On the other hand a buyer's agent can look at the property objectively.  Run a market analysis, pull the tax records, help you determine whether it's a good deal and what would be a fair asking price. As a buyer's agent I want my clients to have a clear picture of the market and help negotiate the best deal for them. The job of a buyer's agent is not to "sell" any particular property, but to represent the best interests of thebuyer/consumerthroughout the home buying process.A buyer's agent helps consumers make smart decisions as they buy the home they love.

Buying a home is a major investment and as a buyer you need someone on your side.  A good buyer's agent isn't just interested in a quick sale, we want to keep your business in the future, we want referrals from your friends, neighbors and business associates.  The best way to ensure that is to have happy clients.

So many of my out of town buyers relocating to the Greater Savannah Area start out searching on the internet and it's a great way to start but when you get serious about your move you really need to find a buyer's agent to assist you.

A while back I met a couple who had relocated to Savannah from out of state.  The called the listing agent on a home,  closed on the home, moved in and then started to explore the area.  They quickly realized that they much had made the wrong choice.  The listing agent had not shown them a clear picture of what was available in their price range and they found other neighborhoods that they much preferred. I showed them a variety of homes in those neighborhoods and they settled on a home.  I helped them to negotiate a great deal and they closed on and moved into their new home.  We put their first home that they purchased through the listing agent on the market but they had paid too much and the market was declining more and more with the mortgage crisis.  Eventually the home sold but they had to take a substantial loss.

If only they had used a good buyer's agent they would have avoided a costly mistake by having a clear picture of the local market and someone looking out for their needs and best interests.

If I can answer any questions about the benefits of a buyer's agent please don't hesitate to let me know.

Thomas Tolbert

Keller Williams Realty

Office 912-232-8580

Direct (Best way to reach me) 912-308-6839

thomas.tolbert@me.com

SEARCH THE MLS

Why You Should Use A Buyer's Agent

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

thomas.tolbert@me.com

SEARCH THE MLS