Four Reasons To Use A Buyer’s Agent (And The Danger Of Not Using An Agent)

Purchasing a home is the most complex and biggest financial transaction most people will ever make.  There are four ways a good real estate agent can help you achieve success.

They can help you find a home that meets your needs for freeway access, construction, amenities, school districts, access to healthcare, and proximity to shopping.  They can also help you avoid pitfalls like being too close to a smelly garbage dump, or being near a noisy airport, outdoor shooting range, or train tracks.

Once you find a perfect home, your real estate agent will help you draft the complex paperwork to make a competitive offer with appropriate addendums you should include for your protection.  See my previous blog titled “Creating A Strong Offer”.  The seller has to view your offer as the best offer or they will pick another offer from another buyer.

Once the offer is submitted, you still must get a meeting of the minds with the seller.  There can be some back and forth with counter offers.  All details must be in writing and signed by both parties.  Your real estate agent will help you negotiate the best terms considering your circumstances.

After getting your offer accepted, your agent will help you negotiate the remaining hurdles to get to a successful closing.  If specified in the contract, you may do an inspection.  There are several options you can pursue if the inspection finds unexpected surprises.  Your lender will process your loan application to get final underwriting approval.  Make sure you provide requested documents in a timely manner and do not make any large purchases that can change your credit score or debt to income ratio.

So maybe you still decide to purchase a home without the assistance of a real estate agent.  An interesting thing happens even if you try to purchase a home on your own.  At some point, you will have to put your offer in writing.  Usually the seller’s agent or the site agent at an open house will enthusiastically help you with the paperwork.  By virtue of them assisting with the paperwork, they become your agent.  (They are very eager to help because they will receive the commission that was earmarked for the buyer’s agent in addition to the commission they receive as the seller’s agent.)  This puts you in a situation called “dual agency”.  This happens when the same real estate agent represents the buyer and seller.  It is very difficult for this agent to fairly represent the buyer and seller at the same time.

A small misstep like missing a deadline for an inspection contingency or checking the wrong block on the purchase and sale agreement can cost you thousands of dollars.  There really is no reason to not use a real estate agent when purchasing a home…especially since their services are paid by the seller.