Why Not Having a Buyer's Agent Can Cost You
Some buyers think they don't want to be presured by an agent calling or emailing all the time with listings and buying options. Maybe you are one of those types of buyers. You feel that when you find the right home, you will either ask about it from the agent sitting the open house or call on the home from the sign posted out front. Maybe even browse a few magazines and call the listing agent from there. Then that agent can write up the deal and you didn't have to deal with another agent.
Here is the problem with that. Most buyers don't realize who that agent is really working for. The seller. The seller is the customer first. They hired the listing agent to find a buyer. What's wrong with that, you say? Nothing. That is their job. And they get paid the full commission when they have done so. Is there anything to keep that agent from working for you? No. Other than a general sense of not wanting to completely be unethical.
But listing agents work for the seller. Buyer's agent work ONLY for the buyer. They don't have any hidden agenda's in their service. You might be thinking why would I pay an agent to find me a home? Here is the best part. You don't. Buyer's agent's cost buyers nothing. Here's how it works:
When a seller lists a property with an agent, in the listing contract they write up how much commission the seller will pay. A typical amount is about 6%. That amount is split between the buyer's agent and the listing agent. It can be split any way the listing agent and seller agree on but typically is in half. 3% for the listing agent and 3% for the buyer's agent. If the listing agent also finds the buyer, that agent receives the entire 6% commission. You can see why listing agents want to sell their own listings. Their total goal is to get the home sold, not necessarily if it's the best home for the buyer.
The buyer's agent will also take your interest as a priority and keep your negotiating terms confidential. There are reasons to divulge certain things but let's see another example of how a buyers agent can help a buyer.
Couple A is looking at an open house and doesn't have a buyers agent. The listing agent immediatly starts to question them about their home buying experience, finances, etc. They love the house and want to put in an offer. The listing agent asks if they have been pre-approved for a loan and they say yes, up to $300,000. The home is currently listed for $280,000 but has been on the market a long time. They want to offer $250,000 first but love the home and would probably pay more if they had to.
The listing agent submits the offer to the sellers with all this knowledge that they are approved for more and love the house. So the seller counter offers for $278,000 and the listing agent strongly recommends they accept. They do and although they move into the home they love, they probably paid more than they have to.
Let's see this example with a buyer's agent: When Couple A tour the home, they immediately tell the listing agent they have a buyers agent. This frees up the couple to tour the home without feeling pressured or hassled. They return to their buyers agent and want to make an offer again for $250,000. This offer is presented to the listing agent and seller with a pre-approval letter for exactly $250,000. The buyer's agent doesn't mention anything about how much this couple loves the home.
The listing agent and seller now have no idea of the buyer's financial situation or urgency on the home. Because the seller is motivated and doesnt' know for sure if the buyers can afford anymore, he agrees to the offer. The buyers have just saved $30,000!
This is just one example of how a buyer's agent can really help buyers when purchasing Walla Walla homes. If you are ready to get in touch with a buyer's agent, please contact us anytime. We are excited to begin working with you.