People sell homes in different ways. Some people try to sell them on their own (For Sale By Owner or FSBO), some use a third party site like Zillow, or to some extent, Redfin to lower their expenses in order to maximize their potential profits. Many end up signing with a licensed Realtor® because they feel comfort in letting the experts take care of them. Using a licensed Realtor® generally means using experience, expertise, and evaluation techniques to get sellers the best possible outcome; the most amount of money in the least amount of time.
I spoke a few times with a FSBO recently. They were having some difficulty getting their home sold in what could be described as a scorching hot market, and weren't really sure what was happening. I brought a buyer to the property with the hopes of making a deal, but the buyer and seller were too far apart on what the appropriate home value was. Even though he wasn't my client, the FSBO asked me some questions and I was more than happy to answer them. He did not end up signing a contract with me, but he did take my advice, lowered his asking price and went under agreement with someone else shortly after my conversations with him. Contrary to what many believe, a real estate agent's job is to help. Yes, we get paid on the successful closing of a property, but there is more to it than just showing up, taking a few pictures and waiting until the offers come in. That does happen sometimes, but real estate is a long game for an agent. Ups and downs, good years and bad years, easy transactions and painstaking ones. It's the life we chose, but we weigh the pros and the cons constantly as most people do in their chosen careers.
That brings me to today's topic, why should a buyer work with an agent? Why sign a contract and get locked into working with someone if they just search Zillow, Realtor.com or Redfin all day? Why do they need someone like me?
The truth is, you don't. If you want to put in the leg work, compare similar homes in the area for what they sold for, adhere to the strict deadlines needed to successfully close, and trust that the seller and their representation have your best interests in mind, you do not need to work with a buyer's agent.
Read that last one again, trust that the seller and their representation have your best interests in mind. Do they? How do you know? The best part of working with a buyer's agent is that they represent you and your best interests only. Not the seller's; not the listing agent; and certainly not their own. There's a theory that buyer's agents will do whatever it takes to get someone's business. They will get pushy with their own clients and force them into making a decision too quickly or too hastily just to make sure they get their piece of the action. As long as they get paid, nothing else matters.
Those agents may exist. Every profession has bad actors. People who don't work for their clients and only for themselves. The problem in doing that in real estate is that agents are often just as liable as homeowners, inspectors, and anyone else should something go bad. Agents and their brokers get sued, clients put up bad reviews online. I can tell you that there is no long term benefit for trying to force a client into making a bad choice just to get paid. The repercussions are unimaginable.
You don't have to pay a buyer's agent. Their fees come from the agreed upon contract of the seller and their agent. The agent charges a fee for services, sometimes known as a commission. In the contract between seller and list agent, there is a line item that explicitly states how much of that money will be paid out to a buyer's agent upon the successful conclusion of the sale. That portion is also expressed in the MLS so there is transparency. Real estate agents show you the properties that suit your needs, and the commission part should remain unbiased. We work for you for free until the deal gets done. There may be circumstances where that differs depending on the identified property, but it's usually how it works.
I typically don't sign contracts with buyers. If I introduce them to a property and do the leg work to get them a successfully agreed upon offer, I expect to work with them. If you find something on your own and don't want to use me, that's your prerogative. I would appreciate a courtesy heads up though. Contracts protect the agents, and I don't disagree with that process; it's just not my thing.
Buyer's agents are here to help. We answer questions. We schedule private showings. We are there to guide you through every step of the transaction. We are Realtors®, therapists, teachers, and friends (and sometimes all at once). If you ever need any help when starting the real estate search, reach out at any time.
Until next time,
Dave
