What is the value of a great buyer’s agent? Many people think a buyer’s agent is just there to schedule showings and show homes but there is so much more to it than that. This is what buyers need to know going in.

Set up a meeting prior to going out to see homes. You need to make sure you and your agent are on the same page and a good personality fit. In the current market, buyers tour multiple homes and may even submit multiple offers. A relationship built on trust will go a long way. Your agent is going to share strategies and advice based on their experiences in your market to help you write your strongest offer. You will want to feel confident they know the market and your wants and needs.

We are negotiating experts. Prior to even writing your offer we will be in contact with the listing agent to establish a relationship and to get a feel for what the seller is looking for that is not listed on the MLS. Do they have a date they need to settle by? Have they received multiple offers? Do they need rent back? Would they consider the type of loan you are using? And this is all before a contract is even written. Even once you are under contract there are milestones throughout the contract that need to be made and if/when something comes up there may be need to negotiate again. For example if the home value falls below the negotiated sale price in an appraisal. This could put a mortgage in jeopardy and will trigger a need to go back to negotiations. You will want to know that your agent has your back.

Did you know that real estate agents are 100% commission? Brokers do not pay an hourly wage. Today many sellers offer to pay buyer agency compensation. BUT agent compensation is changing and you need to be aware of how this could affect you as a buyer. For our business model, we work off 3% of the gross sale price so that is what I will use for my example. This is not a set number, by law, and is negotiable. Typically the compensation is negotiated between the seller and their agent in the listing agreement. I know, you are wondering why you need to know all of this. Well, that could all be changing soon and we are already seeing some changes. Some sellers may offer 2%. In this case the buyer would be responsible for paying the other 1%. A seller may offer no compensation. This would have the seller paying the whole 3% of their agent’s commission. This is important to be aware of because the funds are not part of the mortgage and will be added to the buyer’s closing costs. We are happy to sit down with you and explain this in more detail. This practice is not widespread yet but could be in the near future.

We have so much more we could say and are sure you may have questions. We would love to meet with you and answer any questions you have. Hope to hear from you soon.

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