Don’t buy a home without a buyer’s agent
May 2011 08

I figured that everyone used a buyer’s agent when buying a single-family or condominium home.

Turns out, that is far from true.

SmarterMoney.com, quoting the National Association of Realtors, says that just 57% of 2010 buyers had buyer representation, according to a 2010 report by the National Association of Realtors. That’s down from 62% in 2009 and 64% in 2006, before the housing bust.

A fair number of the remaining 43% probably bought direct, meaning they negotiated directly with the sales agent (if a resale) or the developer (if new development), but there were also many who went into the deal with no understanding of how the process works and how they are putting their best interests at risk.

When you go to an open house or call yourself to set up an appointment to see a home for sale, you’ll speak with the real estate agent who represents the seller. This agent wants you to pay as much as possible in order to get his/her client the most money possible.

You, on the other hand, want to pay as little as possible.

See the conflict?

When you are looking for a home, then, you should have your own representation. A buyer’s agent, whose allegiance is to you, and only you.

Now, the buyer’s agent is almost always paid from the proceeds of a home sale, so you can see that even here, there’s a conflict of interest. Your buyer’s agent is looking to consummate a deal.

The difference is, your buyer’s agent wants a deal to happen while the seller’s agent wants that deal done. Your buyer’s agent realizes that you aren’t going to love every home you see. So, it’s in his/her best interest to find you the perfect home, in order to get you to buy.

You want to buy a home. Your buyer’s agent wants you to buy a home. Your interests align.

If you’d like to know more about the pro’s and con’s of using a buyers agent versus no representation at all, please contact me.

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