For many, home ownership represents their greatest dream. A home is a declaration of your status; that you have provided shelter for your family. Buying a home will most likely be the largest investment you will ever make in your lifetime. And this is why you need a Buyer’s Agent.
Decisions involving large sums of money are never easy. You want to cover all the bases so you can be assured the investment will yield future returns. The matter becomes more complicated when it comes to real estate because it is an asset whereby returns could be realized with the passage of time.
You also have to remain emotionally disengaged so you can review the decision with a clear mind free of biases and discrimination. But this becomes a challenge when the asset will be your residence. You have a set of needs that you want fulfilled. You have a checklist of the amenities and features you want in a neighborhood.
Even when you have firmed up your decision to buy a home and have come up a clear idea of your wants and needs, the next question is, “Where should I start looking?”
Sure, many real estate agents list their properties online. You can reach out to a real estate agent who has listed properties that have caught your attention. But will he or she protect your interest or their own?
A real estate agent who offers property on the market is working to sell the asset on behalf of the property owner for the purpose of earning a commission. Thus, by contracting the services of a real estate agent you may not get the best price possible on the property because the agent will presumably work to protect his or her commission.
Hiring a Buyer’s Agent would be the better option. A Buyer’s Agent is a real estate agent who works to protect the interest of the buyer. Let’s be clear about that again: a Buyer’s Agent is a real estate agent. He or she has experience working for the seller and in fact still works to help other sellers liquidate their properties. Your contract with the Buyer’s Agent should state that he or she is working for you for the purpose of finding a home that meets your needs and budget.
In terms of commissions, the usual practice is for the seller’s agent to accommodate the Buyer’s Agent’s fees without prejudice to the selling price of the property. You could also negotiate a fixed fee or percentage as commission with the Buyer’s Agent before commencing on the working arrangement.
What can a Buyer’s Agent do for you?
- Acts as your adviser and consultant in the real estate market. Sometimes it’s great to have someone who can give you valuable feedback on your opinions and decisions. A Buyer’s Agent can view your circumstance from three filters:
- As a Seller
- As a Buyer
- As a Homeowner
He or she is in the best position to give you advice on your decision to purchase a home. First and foremost is your decision to actually invest and pay for a home.
A good Buyer’s Agent would want to know if you are indeed ready or qualified to buy a home by asking these questions:
- How will you finance your home?
- Will your stream of income be stable for the duration of an amortization?
- Will the estimated amount of monthly amortization exceed 30% of your monthly income?
- Are you planning to live in the home for more than 5 years?
Going over these questions and feeding your answers to a Buyer’s Agent will help filter any biases you have in your decision to buy a home.
- Provides you a listing of properties for sale
Once you have selected a Buyer’s Agent, the first thing he or she will do is ask you to draw up a list of features you want in a home or in a neighborhood.
Then the Buyer’s Agent will discuss your budget and advise if this will be sufficient considering your needs and wants. A good Buyer’s Agent will not shut down your idea of a dream home if the budget may not seem enough.
Instead the Buyer’s Agent would discuss options with you. He or she will take the next step and ask you to prioritize the list of needs and wants. When this has been fine-tuned, the Buyer’s Agent will proceed to make a list of homes for sale that meet the criteria.
Some of the most experienced Buyer’s Agents have access to sellers who did not have their properties listed publicly. He or she could potentially connect you with these sellers and find out if they are willing to meet your price.
- Arranges property visits and inspections
If you have a full-time job, you probably would not have enough time to schedule appointments with home owners. The Buyer’s Agent can organize these property visits and inspections for you.
He or she will normally schedule three to five visits in a particular day to make sure the search will be productive. The Buyer’s Agent can drive you to the appointment or you can follow behind in your car.
A Buyer’s Agent can also arrange for professionals and contractors to inspect a prospective home before you firm up a decision to buy. These professionals would include an architect, a mechanical engineer, electrical engineer or an interior designer.
Provides guidance during auctions. An auction is a good venue to buy property but it takes skill, expertise and experience to be able to navigate past the confusion and frenetic activity that takes place.
An experienced Buyer’s Agent has been to hundreds of auctions. He or she knows the psychology of an auction. They are experts in identifying specific behavioral patterns and know how to capitalize on perceived weaknesses.
Negotiates on your behalf. Buyer’s Agents are also expert negotiators. As mentioned, many of them have seen the different sides of a transaction.
They’ve been at the seller’s side, buyer’s side and some have had experience in buying their own homes. They know what is to be expected in a negotiation process and how to present a counter offer.
Hiring a Buyer’s Agent is a great strategy that will help you find your dream home. The process of buying real estate property can be tedious and tricky. But having a Buyer’s Agent on your side can tilt the balance in your favor. If you want to learn more about buyer’s agents, visit FlintProperty.com.au.
