What are the benefits of a buyer agent and how are they commissioned?

Asked by Infinity, Menomonee Falls, WI Thu Dec 10, 2009

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6
Harold Arnold, , Chicago, IL
Thu Dec 10, 2009
In Illinois, buyers have a great advantage, they can have an agent represent them and the buyer pays nothing. The seller pays all realtors in accordance to the listing contract and the amount of the transaction.

The benefits of using a buyer agent are very important, necessary and complex.

Here are a few examples based on experience: 1. Looks out for the interest of the buyer 2. Negotiates pricing, incentives and conditions (i.e. Home Warranties, pricing, closing dates, mediator between buyer and seller, various items within the contract/ appliances-equipment-fixtures-painting-closing costs etc.). Over the years, I have had to call lawyers who played phone tag on the phone, had to push lenders to get an answer about the approval of the loan, pickup transfer stamps that were not at the closing, produce documents that were lost or misplaced so the loan could close. And most of all, the production of the latest comps that assists buyers with pricing that will allow for the buyer to obtain an appreciable property.
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Mack McCoy, Agent, Seattle, WA
Thu Dec 10, 2009
The top-level benefit is that you can collaborate on developing goals and a plan for achieving them.

Different buyers have different needs, and the idea is to find an agent who can help you with your particular set of needs. And, if you aren't clear on what those needs are, helping you define them!

They can be commissioned in a variety of ways, the most common is that they agree to be compensated with the co-brokerage fee on listed property.
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Donna Panico, Agent, Janesville, WI
Thu Dec 10, 2009
The main benefit is that they are representing the buyer's best interests when negotiating and writing an offer on a property. Another advantage is that they can give their honest opinions about a property and share knowledge of a property that they otherwise would be prohibited from sharing if they were representing the seller. In the state of Wisconsin, all agents are representing the seller unless a buyer has an agent under contract with them to represent their interests. This is called a "buyers agency agreement."

Compensation is agreed to between the buyer and the buyer's agent at the time the buyer's agency agreement is signed. In most cases the seller will pay for the buyer's agent's services from the proceeds of the sale, but different arrangements may be made as well. In some cases you might agree to an hourly rate, a flat fee, or a percentage of the sale price that the buyer will pay directly to his or her agent at the time of the closing.

If you visit the Real Estate Buyer's Agent Council's (REBAC) website at http://www.rebac.net, you can connect with an accredited buyer's agent in your area and gather other helpful information as well.
Web Reference:  http://www.scwihomes.com
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Chris Novak, Agent, Brookfield, WI
Thu Dec 10, 2009
A buyer agent works in the best interest of the buyer to get the buyer the best possible deal.
Commissions are almost always paid by the seller.
It is my goal as a buyers agent is to educate buyers on the process, keep looking until the right home is found, and then provide all the information needed to make a well informed decision. I am there before, during and after the sale.

Hope this helps!

:o)
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Kathi Panor, Agent, Sarasota, FL
Thu Dec 10, 2009
Hi - The benefits of having an agent represent you are:

. Helps you clarify your priorities.

· Suggests sources of financing and other service professionals, such as inspectors and exterminators.

· Provides sources of accurate and lawful information on neighborhoods, schools, and communities.

· Selects and arranges property showings.

· Evaluates particular properties.

· Explains forms and agreements.

· Suggests contract contingencies to protect you, rather than the seller.

· Assists in the negotiations for a favorable price and terms.

· Keeps all information confidential that could weaken your bargaining position.

· Monitors the entire purchase process, assisting with issues that arise through closing

Seller usually pays commissions if the property is listed on the MLS
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Paul Spoerl, Agent, Appleton, WI
Thu Dec 10, 2009
In a traditional agency situation in Wisconsin the agent is actually working for the seller. As a buyers agent, the agent is working for you! They are looking out for your best interest, trying to get you the best terms and best price. They can actually negotiate for YOU!

Keep in mind, that not all agents are created equal. An agent with a designation as an "ABR" is an Accredited Buyers Agent. They have had additional education and shown that they have experience working for the buyer.

As far as commission goes, In most situations the agent is still paid by the seller on your behalf. The amount they get paid is determined when you complete a buyer agency contract. These fees can vary. There is No Set Fee for a buyers agent.

I have represented many buyers in Real Estate Transactions and have never had 1 penny come out of my buyers pockets for my services.
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