What is the benifit of a buying agent and how much do they cost?

Asked by Buylow, District of Columbia Fri Feb 18, 2011

Is it worth it?

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12
- Dane Micke…, , Prescott, AZ
Mon Feb 21, 2011
BEST ANSWER
The benefit is that you have someone that knows what they are doing on your side protecting your best interests. Usually you do not pay them anything, they are paid by the selling side through a separate contract.

Here is a blog I wrote about the topic:
3 votes
Oggi Kashi, Agent, San Francisco, CA
Sat Feb 19, 2011
Buylow

You can think of the benefits of having your own agent like having your own lawyer. Would you consider going to court without a lawyer if the opposing party already has one? A good agent can save you thousands of dollars by negotiating well and protecting you from making costly mistakes.

The buyer's agent's commission is already built into what the seller will pay in the overall commission. So in essence, when you buy a property, you don't pay a commission until the time comes when you are the seller. There some are cases where a seller is paying a reduced commission and buyer's agents in turn ask the buyer to pay a portion. Of course that's negotiable and would be done with a written agreement ahead of time.

Oggi Kashi
Paragon Real Estate Group DRE01844627
Web Reference:  http://www.oggikashi.com/
2 votes
Jeanne Feeni…, Agent, Basking Ridge, NJ
Tue Feb 22, 2011
Hi there Buylow, agree wholeheartedly with my peers - no advantage to flying solo on your home search and purchase. A good agent will add a tremendous amount of value to your search and negotiations by putting her knowledge of market conditions and inventory to work for you. Cost is covered through commission paid by Seller. I see no reason not to work with an agent. There is much that you can accomplish online but nothing replaces the value of "feet on the ground" working on your behalf. Particularly if you are looking from a distance, a great local agent will be invaluable to you.

Best,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference:  http://www.feenick.com
1 vote
Jennifer Bla…, Agent, Basking Ridge, NJ
Mon Feb 21, 2011
YES! Don't go it alone... the seller's commission covers the buyer's agent. You need someone to watch the market for you; especially if you really are looking in Far Hills but currently living in DC.
0 votes
Belinda Spil…, Agent, Denver, CO
Mon Feb 21, 2011
Looks like you have lots of great answers here.

A buyer's agent is trypically paid by the seller/listing agent and won't cost you a thing. You need representation. The listing agent is working for the seller. This is the biggest investment of your life. Let an expert help you to make sure you aren't paying too much for the home and protect your interest throughout the transaction.

Best of luck to you.
0 votes
Jerry Barker, Agent, Atlantic City, NJ
Sat Feb 19, 2011
Heres an article I published at another site in which I covered two great reasons why potential home buyers should hire their own realtor: http://www.suite101.com/content/two-reasons-home-buyers-shou…
Web Reference:  http://www.sjrates.com
0 votes
Phil Rotondo, Agent, Melbourne, FL
Sat Feb 19, 2011
Buylow;
Even though the compensation for the buyers agent is normally paid for by the seller; It will cost you more in the long run if you don't have an agent.
Web Reference:  http://www.321property.com
0 votes
Melissa Bark…, Agent, Washington, DC
Sat Feb 19, 2011
Having a buyers agent looking out for your interest and explaining and helping you thru the buying process is very valuable to a buyer. A buyers agent is there to advise and help you not the seller. A buyers agent does not cost you anything (other than maybe an admin fee depending on where the agent works), the buyers and listing agents commissions are paid by the seller at settlement.
Web Reference:  http://www.wdcmetroagent.com
0 votes
Bill Eckler, Agent, Venice, FL
Sat Feb 19, 2011
Having you own agent represent you as a buyer in a real estate transactions is one of the best deals going....since the seller normally pays for the fees for professional services from their proceeds.

Good luck,

Bill
0 votes
Dan Tabit, Agent, Issaquah, WA
Fri Feb 18, 2011
Buylow,
Sounds like you are getting ready to buy and have lots of questions. I did a series of blog posts a while ago for first time buyers. Some of the process may be different in DC than over here in the other Washington, but much of it will be similar. I've attached a link to the main post, and there are links to some of the steps further broken down.
To answer this question directly, a buyer’s agent works for you, looks out for your interests and is your negotiator. Their allegiance is only to you. A good buyer’s agent will be paid by the seller and will be worth far more than their commission.
0 votes
Gerard Carney, Agent, Spring Hill, FL
Fri Feb 18, 2011
Pick and agent, any agent in the area, as if He or She is a Realtor member, The sale price has a built in commission format that pays for a buying side agent as well as a selling side agent. So the cost to you is nothing!
0 votes
Michael Emery, , Minneapolis, MN
Fri Feb 18, 2011
A buyers agent is typically paid from the sellers proceeds, unless you have a written arrangement with an agent to pay them more than the commission they are earning from the house you are buying.

While I won't say that using a buyers agent won't 'cost you anything' because the commission is factored into how many sellers price their homes, there is generally not a direct out of pocket cost to you to use a buyers agent.

When you have your own agent that is exclusively working for you, they will help you find a home, negotiate the price and terms, submit the contract to the sellers and their agent and arrange for inspection, title, plus working with your loan officer to assure that the transaction goes as smoothly as possible with with little worry on your end.

If you don't know of an agent, talk to friends, family members and co-workers who have recently bought a home and ask them if they know an real estate agent they would recommend and trust.
0 votes
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