You may have heard the term before but never knew exactly what a buyer's agent was or how to best utilize one.
We at Crescent Realty employ many agents and brokers to assist in just about any Tacoma homes transaction including commercial, residential and business. If you are a buyer currently looking for a home or business to buy chances are you will benefit greatly from the help of a buyers agent.
This agent usually costs the buyer nothing as they are paid solely from the commission on whichever property the buyer chooses. The buyer does not have to pay the agent anything even at closing. The seller of the home or property pays both the listing agent and the buyers agent. In some cases this can be the same agent. If you do sign a buyer's agency agreement, be sure to get all of the specifics as to how the agent representing you will be paid at closing.
When the same agent lists the property and finds a buyer for the property that agent is acting under the dual agency act. Although this is a great place for the agent to be as they will receive all the commission, its not always a good place for the buyer to be in. Chances are, the sellers enlisted the help of the agent first and then the buyer was found so more than likely the agent will be working for the seller and to the seller's best interest. When a buyer enlists the help of their own agent to help find and facilitate the transaction that agent is working only for the buyer and not the seller of any home.
By using the help of a buyers agent you can be sure your financial concerns, home buying needs and anything of a confidential nature will be kept private.
FOR EXAMPLE: Say the Jones's were selling their home and enlisted the help of Agent Bob to list the home. Agent Bob sits an open house and meets the Smith's who are looking to buy a home. They currently have no agent so Agent Bob says he would be happy to help them buy the Jones's home. During the course of the purchase and sale agreement the Smith's tell Agent Bob they want to offer $10,000 less than the purchase price. Agent Bob asks if they are approved for a loan. The Smith's say yes and they divulge they are approved for much more than the listing price on the house. Now that Agent Bob knows this, he inquires how much the Smith's really like the house. They say they really like it and want to buy it. Now Agent Bob submits the offer to his clients, the Jones's, and tells them that even though they are offering less, the Smith's can really afford more and really like the house. With this vital information the Jones's end up counter offering for more money or full price of the home knowing the Smith's like the home and can afford more.
If the Smith's had a buyers agent working only for them, this information would remain confidential and the sellers wouldn't need to know the financial state the Smith's are in. As a seller it is legitimate to know the buyers are approved but not necessarily how much they can afford. You can see that using a buyers agent can really save you money and hassles.
If you are interested in using a buyers agent to help purchase your next Thurston or Pierce county real estate or property please give us a call. We have agents that specialize in working with buyers and finding homes for them.