BUYER'S AGENTS: DO THEY GIVE HOMEBUYERS A COMPETITIVE EDGE?
The real estate market has experienced an interesting year and a half. Very low inventory due to sellers holding off and extremely high competition exhausted buyers and led them to question the whole process. Some have even wondered if working with an agent is actually helpful, that perhaps skipping the buyer’s agent and working directly with the seller’s agent is a more efficient way to get the house they want. Maybe the seller’s agent will prefer them over other buyers and take their offer.
Before making an offer, your buyer’s agent will:
- Develop a plan to accomplish your goals in the current market.
- Advise on a team of vetted and reputable professionals such as a lender and attorney or title company.
- Provide access to homes not on the market or not yet listed to give you a competitive edge.
- Represent buyers on MLS listed properties, PLUS bank properties, auctions, FSBO’s, HUD Homes, and new construction.
- Provide property data & resources on towns and cities such as school information, tax information, and community resources.
- Streamline the process by scheduling showings that work for your schedule and before an open house if possible.
- Promote and protect the interest of the buyer at ALL times (even if it means pointing out reasons not to buy).
Will working directly with a seller’s agent help a buyer?
The short answer is NO. Skipping out on proper representation during the largest financial transaction of one’s life is not advised. The long answer begins with one main point. The buyer’s agent is there to protect the buyer’s interests and goals and without that protection, they’re vulnerable.
As buyer’s agents protect a buyer’s interests, seller’s agents are there to protect the seller’s interests with the main goal being to get the seller the most money for their home. Buyers who go directly to the seller’s agent risk paying more than if they use a buyer’s agent to help negotiate the price and terms. Not only could the buyer pay more, but the terms of the deal could be negotiated to the seller’s benefit.
When the perfect home is found, your buyer’s agent will:
- Provide guidance on how much to offer based on a recent sales, other buyer interest, the local market, and other factors to help you make an attractive offer while not overpaying
- Structure offers with the buyer’s interests in mind
- Negotiate best price and terms in favor of the buyer.
- Provide guidance and assistance on forms and documents, contingencies, and submit an offer with your interests and goals in mind.
At the end of the day, the strongest offer will be taken
It has been a seller’s market for over a year and many homes have been sold in multiple offer or bidding war situations. Though the common conception is that the highest offer will always win, it’s not always the case.
If the seller’s agent is experienced and truly has the seller’s interests in mind, sometimes a lower offer will be accepted if it is the strongest one. A buyer with an expert buyer’s agent will likely provide the strongest offer to a seller because they’ll be prepared. The buyer’s agent will make sure that the buyer has a strong pre-approval letter, is working with a qualified lender and real estate attorney, and the seller’s agent will feel assured that their offer is ironclad.
Once the offer is submitted and accepted, your buyer’s agent will:
- Manage the paperwork and review inspection results and disclosures with you.
- Negotiate additional terms with the seller due to applicable inspection findings.
- Coordinate access to property for vendors, inspectors and for buyer to return and make plans for the move.
- Coordinate and monitor closing details and exchange of keys.
You’re not just working with an agent, you’re working with their team.
It can come to pass during negotiations that a buyer needs a lender to go to bat for them. The connections a buyer’s agent has will ensure the buyer is working with the right lender for their financial situation. Sometimes, a call from the lender to vouch for a buyer will make a seller’s agent consider their offer further. As well, when the terms of the deal are being reviewed, a real estate attorney will safeguard the buyer’s interests and make sure the contingencies align with a suitable timeline.
Hiring a buyer’s agent will save a buyer money.
Let’s say it another way. Not hiring an agent will likely cost a buyer money. If a seller’s agent feels that the buyer’s agent is reliable and pleasant to work with, it can go a long way in a multiple offer situation. Experienced buyer’s agents know how to effectively communicate with seller’s agents which can make their offer more attractive than other strong offers. For example, if another buyer has a slightly higher offer, but their mortgage broker is notorious for doling out weak pre-approvals, and their agent has a terrible response rate, the seller’s agent will probably recommend that the seller disregard that offer. Now the buyer with the better agent will save money because they won’t have to go further and outbid that other offer.
Buyers aren’t saving money by diving into this process alone, it’ll only cost them. A good buyers agent will make sure that they’re getting the right house for the least amount of money.
If you’re in the market for a home and would like to learn more about our buyer’s agents, give us a call at 855-510-SOLD or contact us here. Lamacchia Realty agents are the most highly trained and widely reputed as the strongest in the area and will get you the home you want for the right price.