Do I need a buyer's agent?

The answer for almost everyone is a yes! Sometimes people think they can save money by not using a Realtor. By the way not all real estate agents are Realtors. A real estate broker using the title Realtor has voluntarily joined an association that requires higher standards of education, ethics and professionalism.

In most markets sellers sign listing agreements with Realtors. Those agreements many times call for that agent to share the commission with a buyer's representative. So if you purchase the property without using a buyer's agent the full commission is paid to the selling agent. The seller' net proceeds is the same and you have not realized any savings. In most cases without the advice provided by an agent you will have paid more or made expensive mistakes.

A good buyer's agent will have assisted with finding home inspectors, lenders and closing attorneys that are competent and reasonable.  A buyer's agent will have the resources to provide comparable sale data. He or she will also have experience in negotiating price and other terms. A Realtor will provide standardized contracts that are fair, clear and that avoid pitfalls for buyers. If you buy a home that is listed, the seller will have a seasoned professional on their side. They have handled dozens or even hundreds of transactions. My fellow Realtors are very good at what they do. Going into a real estate transaction without a professorial on your side would be like stepping up to the plate at a  MLB baseball game without ever holding the bat. Unless you get hit by the pitch the outcome will be you walking back to the dugout talking to yourself.

OK, you are still determined to try to save a few dollars. Perhaps twenty per cent of real estate may be sold as a for sale by owner(FSBO). Your thinking I can get it for the fair value minus the commission. Who determines what the fair value is? Do you have the experience and files necessary to make that judgement? Do you know how to determine the heated square footage of the home? Is the seller's asking price fair? Many FSBO are priced well above fair market value. Many FSBO have been rejected by brokers because the owners insisted on prices well above the market value. This is especially true for properties bought at the peak of the market.  Do you know how to search out that information at the Register of Deeds?

Perhaps the property has hidden flaws that the seller does not want to disclose. Licensed real estate brokers are held to a much higher standard than an individual seller. Once you close on the transaction getting any relief from the seller will be very difficult. Realtors and other licensees are required to reveal any material facts that can effect the value of the home you are purchasing.

For most the purchase of their home is the largest transaction they will ever have. Can you afford a mistake? Enlist the help of a Realtor willing to represent your interest to the exclusion of all others, even his own. When purchasing real estate employ a Realtor. I believe it will save you heart ache, time and money.

Gary Barker

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