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SaveMORE Loan » Blog Archive » You Need a Buyer’s Agent

August 31, 2007

You Need a Buyer’s Agent

by @ 1:39 pm. Filed under Uncategorized

 

Some people will tell you that you don’t. Granted, the system of two agents splitting one commission is imperfect. And it’s against human nature for your buyer’s agent to get you the best (read lower) price under this scenario.

 

But there are good buyer’s agents out there who go above and beyond the call of duty for their clients every day. Because they understand loyalty, and know that you’ll refer them to your friends, and hire them as your seller’s agent when the time comes.

 

So get a referral to a buyer’s agent, one who is recommended without reservation. And run them through our screens anyway. If you don’t have a referral, call several agents who have a lot of houses listed in the Sunday paper. A good selling agent will probably be a good buyer’s agent.

 

You need to understand that an agent is primarily a salesperson. But never put up with impatience, failure to answer questions or non-response to phone calls or emails.

 

Always:

Choose a broker over a mere agent

Make sure their license is current

Ask how long, on average, it takes them to find houses for their buyers (it should take less than 2 months)

Ask if they’ll take a lower commission if it means more wiggle room for you in your purchase price (don’t make this a deal killer)

Get full disclosure of flaws on every house you’re interested in—you’re entitled to this by law

Find out as much as you can about the seller’s circumstances

Cross out any language in the buyer’s agency contract you don’t feel comfortable with—it’s your right

 

Before you sign anything, get the following information about commissions in writing, and be sure you’re comfortable with it:

How does the agent get paid if you buy a FSBO house?

How does the agent get paid if the listing agency doesn’t split commissions?

 

Most agents want exclusivity. It’s a reasonable request, considering that other agents are trying to steal their clients and “lookie loos” will try to waste their time. If you like the agent and they want an exclusivity agreement before showing you houses, ask them to give you a little while to get to know them first. If they won’t do that, try to get a contract that only lasts a few days. If they still insist, walk. There are plenty of agents out there.

 

Never:

Sign an exclusivity contract that lasts more than 90 days

Pay an upfront fee to any agent (legitimate agents get paid when a house is sold—always)

Tell the agent your real top price—just tell them a figure you can live with

Allow an agent to pressure you to buy any house

 

 

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