During the hunt for your home sweet home, you’ll be faced with options and terms that don’t always entirely make sense. The already overwhelming process of this huge life decision is amplified when your understanding of the situation is less than crystal clear. In your search for the dream home, the term buyer’s agent has probably been casually thrown around. But what is a buyer’s agent and do you need one?
What is a buyer’s agent?
As a buyer’s agent, the mission is simple: obtain the best deal for the buyer. Conversely, the listing agent’s job is to get a good price for the seller. If you enter into a home transaction without the aid of a REALTOR serving as your buyer’s agent, you’re already paying more money for the home than you should be. The buyer’s agent will show properties and ultimately negotiate the price as a counterbalance to the agent who represents the seller.
Why you need a buyer’s agent.
A buyer’s agent is starting to sound pretty good, isn’t it? It gets better. As a buyer, you don’t pay the buyer’s agent. The buyer’s agent splits commission with the seller’s agent, making the services essentially free to the buyer. Additionally, a buyer’s agent can usually access historical price data for home sales in the area. This allows the agent to recommend a bidding strategy that targets comparable properties that sold for less, rather than the midrange.
REALTOR Alex Cortez puts it this way: if you were getting sued, would you hire the same attorney of the person suing you? No! You need someone who will fight for your interests and rights diligently.
The Minnesota Association of REALTORS® is the largest professional trade association in the state with more than 17,000 members who are active in all aspects of the real estate industry.