Buyer’s Agent: How Do I Find A Good One?

Whether you’re hunting for a starter home or your forever abode, real estate agents can help make buying a home easier. As a buyer, you’ll want to find a buyer’s agent who can help you find your perfect home. But what is a buyer’s agent, and how do you find the right one?

Let’s look at what a buyer’s agent is and discuss how they can help you buy a house.

What Is A Buyer’s Agent?

A buyer’s agent is a real estate professional who guides home buyers through the home buying process. As a purchaser’s representative in a real estate transaction, a buyer’s agent has a legal obligation to protect the buyer’s interests and ensure they get the best deal possible. Although some real estate agents specialize in working with buyers, most can work as a buyer’s agent or listing agent, depending on the specific transaction.

Buyer’s Agent Vs. Listing Agent

Two real estate agents are usually involved in a real estate transaction: a buyer’s agent and a listing agent – also known as a seller’s agent. Both are often referred to as real estate agents or Realtors, which is a licensed real estate agent who’s also a member of the National Association of Realtors The buyer’s agent or Realtor works on behalf of the buyer, while the listing agent represents the seller’s interests.

A buyer’s agent will help the buyer navigate the real estate landscape by finding listings and advocating for the buyer’s needs. A listing agent is responsible for listing a seller’s property. They have a fiduciary duty to look out for the seller by securing the best terms possible for the seller’s property.

Dual Agency

Buyers often find a property they like and work with the listing agent to negotiate the sale instead of hiring their own agent. While this type of dual agency is sometimes possible, it’s discouraged because it can lead to a conflict of interest. When it’s time to negotiate, it can be difficult for one agent to be loyal to both parties in the same transaction.

Buyers and sellers inherently have distinct interests, especially regarding the purchase price. In some states, dual agents are illegal, so it’s important to understand your area’s real estate laws.

What’s Your Goal?

Home Purchase

Home Refinance

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What Does A Buyer’s Agent Do?

A buyer’s agent is a real estate professional who serves as a resource for their clients, guiding them through every step of the home buying process. As a result, a buyer’s agent generally takes on the following tasks.

Find Listings

At the beginning of the home buying process, your agent will ask you about your needs and preferences. Your buyer’s agent will use this information to search for appropriate properties using the multiple listing service. This service is accessible only to real estate professionals, which makes a buyer’s agent even more valuable, especially for first-time home buyers. As new listings enter the real estate market, your agent will send you properties that match your needs.

Schedule Showings

You can peruse the listings your agent sends and pick out the ones you want to see in person. Your agent will coordinate with the respective listing agent or the sellers if the home is for sale by owner. Then, they’ll schedule a convenient time for you to tour the property. The buyer’s agent will also inform you of any open houses you may be interested in attending.

Attend Showings And Open Houses

The buyer’s agent will typically join you at showings and open houses. As you tour the property, the buyer’s agent answers questions and offers thoughts about the property based on their expertise. Your agent will ask the listing agent (or FSBO seller) questions to gain insight into the seller’s circumstances, the property’s condition, taxes and more.

Advise On Purchase Price

Once you find a property you’re interested in purchasing, your buyer’s agent will ask the listing agent if there are any disclosures on the property. These are potential issues a seller must reveal to buyers that may affect the home’s desirability or pricing. Then your agent will run a comparative market analysis for the property based on similar properties that recently sold in the area. Based on their research and the current market, your agent will recommend an offer price.

Negotiate With The Listing Agent Or FSBO Seller

After making an offer on your behalf, your buyer’s agent will negotiate the purchase price and terms. The agent will keep you updated on any counteroffers made by the seller and advise whether to accept or amend them. Your agent will also recommend strategies to make your offer more competitive, such as eliminating contingencies or adjusting your closing date. As soon as the seller accepts your offer, the buyer’s agent will work on drafting the contracts.

Recommend Other Real Estate Professionals

Your buyer’s agent will guide and advise you through closing, but you’ll likely need to consult with other real estate professionals. Your buyer’s agent may refer you to real estate attorneys, home inspectors and others to help ensure your interests are protected.

Who Pays Real Estate Commissions For Buyer’s Agents?

Typically, the seller pays the real estate commission for both the buyer’s agent and the listing agent. Essentially, buyers get the benefit of working with the buyer’s agent for free. If you don’t purchase a home, the buyer’s agent doesn’t get paid.

Unless there’s a different arrangement in the sales contract (or exclusive agreement between agent and client), the commission is a percentage of the purchase price and each agent is paid their portion. The seller technically pays for both agents because their fees are deducted from the proceeds of the sale.

Can You End A Contract With A Buyer’s Agent?

Buyer’s agents only get paid if you close on a home, so some agents insist that buyers sign a buyer’s agency agreement to solidify the working relationship. The contract details the terms of the relationship and ensures the buyer works exclusively with the agent to purchase a home.

You can hire a different agent if you haven’t closed on a home by the time the contract expires. However, you should read the terms of the buyer’s agency agreement carefully. Some contracts stipulate that the agreement renews automatically at the end of 3 months.

If you don’t see eye to eye with your agent, your ability to end the contract could be limited by the fine print. You may have more flexibility in terminating the contract if your agent fails to perform any duties listed in the agreement.

To ensure you don’t get stuck working with an agent you don’t feel comfortable with, try negotiating for a trial period. While some agents may refuse, it’s always worth asking whether you can add a 30-day or 60-day opt-out period to the agreement.

How To Find A Buyer’s Agent

There’s no question buyers should work with a buyer’s agent given their expertise. However, you may wonder how to find a buyer’s agent who’s right for you. Some agents work exclusively with buyers, but most don’t. Follow these steps to decide who’ll represent you best.

1. Get Recommendations

It’s extremely valuable to get agent recommendations from people you trust. Ask friends and family if they’ve had good experiences with a buyer’s agent. You can also ask your lender for recommendations. Another option is searching online for reputable agents in your area. Or you can use the directory on the NAR website to find licensed Realtors.

2. Ask Questions

Ideally, your agent should have experience finding homes in your desired location and price range, and they should make you feel comfortable. You can ensure your agent meets both of these criteria by asking questions. To help find your perfect buyer’s agent, consider the following questions for your agent:

3. Align Your Home Buying Goals

Next, make sure your goals are clear. When describing your ideal home to potential agents, consider how well they understand your needs and preferences. Ideally, they’ll hear what you’re looking for in a new home, and they’ll have a plan to get you as many of those features as possible while staying within your budget. The right agent for you will be someone who gets your goals and gets the industry.

4. Repeat This Process With Multiple Agents

The final step is to repeat this vetting process with several agents. Don’t choose an agent until you’ve spoken with multiple professionals and gathered a pool of solid candidates. You won’t truly know if the agent is the right fit for you until you talk with a few who aren’t.

FAQs About Buyer’s Agents

Let’s take a look at some common questions about buyer’s agents.

The Bottom Line

Buyer’s agents work as your representative throughout the home buying process. They offer professional insights, protect your best interests and help you negotiate the best possible deal. Having a buyer’s agent at your side can help simplify buying your next home.