Home News In Today’s Competitive Market, a Buyer’s Agent Can Give You a Big Edge

In Today’s Competitive Market, a Buyer’s Agent Can Give You a Big Edge

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Earlier this year, real estate agent Melanie Mass was working with a couple looking to buy a home. Aspen, Colorado. They decided to buy a house just a few blocks from the gondola with easy access to the ski slopes. However, after looking at several properties, Musu didn’t find one he liked.

Later, while standing outside the house he had just toured, Musu got word about a property that would hit the market later that week. Muss insisted that buyers see their homes even if they didn’t meet the criteria they had initially set.

“I know it’s not for everyone, but you have to see this house,” she told them.

The buyer fell in love as soon as they approached the house. “This is our home,” Musu recalls them saying. The next day they set up a tour and within hours had a deal.

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“That’s something buyers can’t do on their own,” says Muss.

In today’s highly competitive housing market, an agent is essential to buying a home. In addition to providing buyers with market expertise and helping them narrow down their options, agents use their networks to help secure deals that buyers may not have known about before, and sometimes If it comes, it was pointed out by the exhibitor.

Emily Clarke, President of Berkshire Hathaway Home Services in Cape Cod, Massachusetts, said: “That way, you can get much further than you would if you worked alone.”

Many buyers are starting to search for homes online, but most people still buy their homes with the help of agents.88% last year Buyer used agent To help them buy a house, according to the latest information National Association of Realtors Home Buyer and Seller Profiles.

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Agents can provide support from the beginning of the home buying process.

“The first step is to prepare the buyer and make sure they understand how much they can afford,” says Clark. This may include helping buyers navigate and obtain pre-approval from various lenders.

Next is research.

Buyers are Zillow or Realtor.comClark stresses, agents can provide far more market knowledge than buyers can learn from online research.

“They know the market better than you do,” Clark said. “They know these houses inside and out.”

Agents could also work within the network to identify homes that aren’t already on the list, as Muss did for his Aspen client.

“There is a lot of activity going on outside the market right now,” Mus said. “It’s information that buyers alone never have access to.”

Expert advice for making good offers

Douglas Elliman’s real estate agent, Abi Dan Goole, said that as much as the up-front effort real estate agents put into finding a home, their true value is shown in the negotiation process.

Inexperienced buyers often mistakenly believe that price alone determines the success or failure of a transaction.

“But that’s not all,” he said. “There are a lot of nuances: inspections, closing costs, who’s paying what, who’s paying the transfer tax, do you get a home warranty? Buyers who don’t routinely do this are more likely to have these I don’t know what to look for.”

They also often don’t understand “true family values,” Clark said.

“Pricing a home is a very difficult process to understand at this time because things are changing so quickly in today’s market,” she said. “If you don’t have a professional behind you, I think it’s very difficult and you could easily overpay for a property.”

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Emotions can also cloud a buyer’s judgment. During the bidding war, desperate buyers may throw up big bucks trying to secure a property without considering whether its value will hold water in the future.

“Part of the agent’s job is to remove the emotion involved,” Clark said.

Agents are also important for buyers who deal directly with home builders, Dangour said. A builder may be reluctant to negotiate a price, but may be willing to upgrade your home, such as improved appliances and flooring.

Whether negotiating with a homebuilder or a seller’s agent, it’s important to have an experienced professional working on your behalf, Dangour said.

“You have someone to rely on,” said Mr. Dangour. “Do you ever represent yourself when someone else is representing you?”

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Compensation method

Some buyers think they may be able to lower their home closing costs if they go it alone.

When a seller lists a home, they agree to commission a field percentage of the sale price (usually 5% to 6% of the home price). The seller’s agent determines how much of that commission is sent to the buyer’s agent.

Depending on market conditions, that number may change. In a seller’s market, sellers may offer lower fees, while in a buyer’s market, a buyer’s agent can expect higher fees.

Buyers often assume that a buyer’s agent’s services are “free” when, in reality, the cost is usually built into the list price. Selling a house for $400,000 may include a 6% or $24,000 commission, which is typically split equally between the buyer and seller’s agent and paid by the seller. Buyers who find a listing agent typically don’t negotiate rates or pay out-of-pocket with the agent.

Typically, buyers who decide not to use a buyer’s agent want to save money by negotiating a lower overall brokerage fee. Considering they don’t have an agent to collect the fees, they might try to get the homeowner to drop the price of his home by 3%.

In some states, a seller’s agent can agree to reimburse a portion of the commission to the buyer or seller, but they are unlikely to do so in a highly competitive market, the agency said.

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Choosing a Good Buyer’s Agent

Between trade shows, trade shows, driving to regular calls, and finally overcoming the stress of closing a deal, buyers and agents spend a lot of time together. So choosing the right one is important.

Many buyers rely on networks to make decisions. Nearly half (47%) of buyers surveyed by the National Association of Realtors in 2021 used an agent who was referred by a friend, neighbor or relative, and 13% used an agent they had previously dealt with bought and sold. House.

Dan Goor suggests that buyers interview several agents before making a selection. Someone with a strong reputation in the field and knowledge of the market is important.

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“It’s not one-size-fits-all,” he said. “Just because a client loves me doesn’t mean their best friend will love me.”

Buyers should ask themselves what the most important qualities in a potential agent are, even before starting an investigation, he added.

“Am I looking for a friend? Am I looking for someone who is fun to be with? What are you looking for in a hyper-analytical person?” said Dan Goole. “It’s a matter of fit and it has to be perfect for you.”

Agents help buyers make one of life’s most important financial decisions, so finding the perfect fit is key.

“If you have the right buyer’s agent, it’s definitely worth it,” Muss said. “We are worth our weight in gold.”

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