The real estate market has experienced quite an interesting half-decade. The early 2020s saw very low inventory due to sellers holding off, and extremely high competition exhausted buyers, leading them to question the whole process. Slowly, inventory has climbed back up, and we’re now seeing the most homes on the market since before the pandemic.
Despite a new hopeful outlook, some buyers still wonder if skipping the buyer’s agent and working directly with the seller’s agent is a more efficient and less costly way to get the house they want. They think, “Maybe the seller’s agent will prefer us over other buyers and take our offer.”
Will working directly with a seller’s agent help a buyer?
The short answer is NO. It’s a seller’s agent’s fiduciary duty to protect the interests of the seller, not the buyer, just as the buyer’s agent is there to protect the buyer’s interests and goals.
As a buyer, skipping out on proper representation during the largest financial transaction of one’s life is not advised. Without that protection, buyers are vulnerable. Buyers who go directly to the seller’s agent risk paying more than if they use a buyer’s agent to help negotiate the price and terms. Not only could the buyer pay more, but the terms of the deal could be negotiated to the seller’s benefit.
Before making an offer, your buyer’s agent will:
- Develop a plan to accomplish your goals in the current market.
- Advise on a team of vetted and reputable professionals, such as a lender and attorney, or title company.
- Provide access to homes not on the market or not yet listed to give you a competitive edge.
- Represent buyers on MLS-listed properties, PLUS bank properties, auctions, FSBOs, HUD Homes, and new construction.
- Provide property data & resources on towns and cities, such as school information, tax information, and community resources.
- Streamline the process by scheduling showings that work for your schedule and before an open house, if possible.
- Promote and protect the interests of the buyer at ALL times.
When the perfect home is found, your buyer’s agent will:
- Provide guidance on how much to offer based on recent sales, other buyer interest, the local market, and other factors to help you make an attractive offer while not overpaying.
- Structure offers with the buyer’s interests in mind.
- Negotiate the best price and terms in favor of the buyer.
- Provide guidance and assistance on forms and documents, contingencies, and submit an offer with your interests and goals in mind.
At the end of the day, the strongest offer will be taken
This is true year-round, but it especially applies when it’s a seller’s market and homes are being sold in multiple offer or bidding war situations. Although it’s a common misconception that the highest offer will always win, that’s not always the case.
If the seller’s agent is experienced and truly has the seller’s interests in mind, sometimes a lower offer will be accepted if it is the strongest one. A buyer with an expert buyer’s agent will likely provide the strongest offer to a seller because they’ll be prepared. The buyer’s agent will make sure that the buyer has a strong pre-approval letter, is working with a qualified lender and real estate attorney (depending on state requirements), and the seller’s agent will feel assured that their offer is ironclad.
Once the offer is submitted and accepted, your buyer’s agent will:
- Manage the paperwork and review inspection results and disclosures with you.
- Negotiate additional terms with the seller due to applicable inspection findings.
- Coordinate access to the property for vendors, inspectors, and forthe buyer to return and make plans for the move.
- Coordinate and monitor closing details and exchange of keys.
You’re not just working with an agent, you’re working with their team
It can come to pass during negotiations that a buyer needs a lender to go to bat for them. A buyer agent’s connections will ensure the buyer is working with the right lender for their financial situation. Sometimes, a call from the lender to vouch for a buyer will make a seller’s agent consider their offer further. As well, when the terms of the deal are being reviewed, a real estate attorney will safeguard the buyer’s interests and make sure the contingencies align with a suitable timeline.
Hiring a buyer’s agent will save a buyer money
Let’s say it another way. Not hiring an agent will likely cost a buyer money. If a seller’s agent feels that the buyer’s agent is reliable and pleasant to work with, it can go a long way in a multiple-offer situation. Experienced buyer’s agents know how to effectively communicate with seller’s agents, which can make their offer more attractive than other strong offers. For example, if another buyer has a slightly higher offer, but their mortgage broker is notorious for doling out weak pre-approvals, and their agent is inexperienced and difficult to work with, the seller’s agent will probably recommend that the seller disregard that offer. Now the buyer with the better agent will save money because they won’t have to go further and outbid the other offer.
Buyers aren’t saving money by diving into this process alone; it’ll only cost them. A good buyer’s agent will make sure that they’re getting the right house for the least amount of money.