In August 2024, a legal settlement involving commissions paid to real estate agents representing home buyers has led to changes in the home buying process. Home buyers in most markets will now be required to sign agreements with their agents before touring homes, and buyers will set their agents‘ commissions through negotiation. This change will have an impact on both home sellers and home buyers, as it alters the way real estate transactions are conducted.
One key player in the home buying process is the buyer’s agent. A buyer’s agent is a real estate professional who represents the purchaser’s interests in a real estate transaction. They play a different role from the listing agent, who represents the property’s seller. Most residential real estate agents work with both buyers and sellers, acting as a listing agent for the home sale and a buyer’s agent for the home purchase.
A good buyer’s agent can act as a guide on your homebuying journey. They will find homes for sale that match your criteria, help you craft a competitive offer, negotiate on your behalf, and provide you with knowledge and support throughout the homebuying process. They will also help you understand the type of home you can afford in the current market and provide you with additional information on listings that you find.
When working with a buyer’s agent, it is important to remember that they represent your interests in the transaction. It is not advisable to work with the listing agent of a property you are interested in, as this can create a conflict of interest. Dual agency, where the same agent represents both the buyer and the seller, is illegal in some states and can lead to complications in negotiations.
One of the key responsibilities of a buyer’s agent is to guide you through the homebuying process, from house hunting to closing. They will help you find homes that match your needs and price range, schedule showings, advise you on how much to offer, and negotiate with the seller on your behalf. They can also refer you to other professionals, such as real estate attorneys and movers, to help you with the homebuying process.
In terms of payment, the buyer’s agent fee is typically negotiated before making an offer on a house. The buyer and the seller may negotiate over who will pay the agent’s commission, with options including the buyer paying out of pocket, the seller paying out of the proceeds of the sale, or the listing agent paying the buyer’s agent. The contract with the buyer’s agent will outline their duties and how long you will work exclusively with them.
To find a buyer’s agent, it is recommended to shop for a lender and get preapproved for a mortgage before selecting an agent. Getting preapproved shows agents and sellers that you are a serious buyer. You can get referrals from people you trust, search online for agents with specific experience or in certain areas, and check their licensing and experience. It is also important to interview agents, check their references, and ensure that their working style and approach align with your needs.
In conclusion, working with a buyer’s agent can provide you with valuable support and guidance throughout the homebuying process. They can help you find homes, make competitive offers, negotiate with sellers, and navigate the complexities of real estate transactions. By understanding the role of a buyer’s agent and finding the right one for your needs, you can have a smoother and more successful homebuying experience.