Top 7 Reasons To Use A Buyer’s Agent In A Real Estate Transaction

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Top 7 Reasons To Use A Buyer’s Agent In A Real Estate Transaction

Article by Eric Bramlett

Purchasing a home is a big step, and a big decision. The average person spends around 1/3 of their income on their home. The home that you choose has a big impact on your life, and can have a big impact on your finances, as well. It always surprises me when Buyers attempt to “go at it alone” because of the possibility of mistakes. A good Buyer’s Agent is invaluable to a Buyer, and can be the difference between a wonderful transaction, and a nightmare.

1) Full Access to the MLSThe Multiple Listing Service (MLS) is a powerful tool that only Realtors have access to. When listing agents market a home for sale, they typically allow any Realtor to present the home to potential buyers, and to present contracts for purchase. The MLS is a database of all homes listed by Realtors, and represents roughly 99% of the homes for sale in any given market. As technology advances, so does the MLS. It has evolved into an extremely powerful search engine that allows your buyer’s agent to enter in search criteria, and returns only homes that match those specific parameters. Buyers can find a lot of this information online through IDX feeds available on many websites, but this information is a “watered down” version of the MLS because the IDX search engines aren’t quite as powerful, and don’t return as detailed profiles as the MLS.

2) Maximize Your TimeWhile driving neighborhoods is an excellent idea to help you decide which locations you prefer, it’s not a very efficient way to find your new home. Gas is expensive, and your time is valuable. Your Buyer’s Agent will listen to your needs, make fantastic suggestions based on your likes & dislikes, and provide you with a list of homes that ALL match your wants & needs. Your Buyer’s Agent has helped MANY new homebuyers through MANY purchases, and will help you better organize your search & decision making process – saving you valuable time.

3) RepresentationListing Agents enter into legally binding agreements that require them to ALWAYS act in the best interest of the seller. They are the seller’s “coach” and will make sure that their clients’ best interests are looked after. Luckily, your Buyer’s Agent is there to make sure YOUR best interests are accounted for. With your expert Buyer’s Agent in your corner, you can rest assured that you’re on, at least, even ground with the home seller. A football team would be at a pretty significant disadvantage without a coach – just as you would be without a Buyer’s Agent.

4) Negotiating PowerThe MLS maintains a record of, not only all homes listed by Realtors in a given market, but also the sales price of those homes. Your Buyer’s Agent will run a Comparative Market Analysis (CMA) to determine a prospective home’s Fair Market Value (FMV). In simpler terms, your Realtor will look at similar homes in the same neighborhood that have sold recently. This way, you will know whether or not the seller has their home priced fairly. If the home is priced over Fair Market Value, your Buyer’s Agent can present your “under asking price” offer with plenty of firepower – and a greater chance that the offer will be accepted.

5) ExperienceThe average person buys 3-5 homes in their lifetime. A good Buyer’s Agent will assist in 3-5 home purchases every month. What might seem complicated and intimidating to you is fairly common and familiar to your Realtor. Your Buyer’s Agent will know what to expect, and will know when to alert you if anything out of the ordinary occurs.

6) Industry ContactsIt takes a lot of people to close a real estate transaction – Buyer’s Agent, Listing Agent, Loan Officer, Inspector, Appraiser, Insurance Agent, General Contractors, and sometimes more! A good agent will come with a strong closing team that has performed in the past, and will continue to perform. A transaction is only as strong as its weakest link – with your strong Buyer’s Agent & their closing team, you can rest assured that you will have plenty of support.

7) Piece of MindIf you are like most people, your home is the largest purchase you will ever make. The average person spends around 1/3 of their total monthly income on their home. This is a big decision and you don’t want to go at it alone. When you use a trusted Buyer’s Agent, you know that your best interests are accounted for, and that you can feel confident in your purchase.

Purchasing a home can be a fun and exciting process. However, the home buying process can be intimidating, and mistakes are possible. A Realtor who specializes in working with Buyers can help alleviate the fears & possibilities for mistakes. Make sure and use a Buyer’s Agent on any real estate transaction, and you will help ensure that you are making the right decisions.

About the Author

Eric Bramlett currently manages his Austin Real Estate Guide, his Austin Texas Real Estate company’s website, & his Tulsa Oklahoma Real Estate Guide.

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What is a Short Sale?

Ask The Real Estate Professional


A short sale in real estate is when a seller owes more money on the loan than the sale of the property will likely produce on the market and the seller is unable or unwilling to bring money to closing. In a short sale, the lender has not yet foreclosed on the property, which provides a window of opportunity for the owner to sell the property in order to at least partially get the lender what is owed.

Because short sales may require multiple approvals and can be extremely time intensive.
Short sales reflect the following:

The property is worth less than is owed.
The seller has some hardship that makes it impossible or impractical for the seller to keep the property.
The seller is cooperative and willing to work with a real estate broker to package the short sale.
The lender is contacted and expresses willingness to entertain a short sale.
The property is listed with appropriate protection for the seller, properly priced and effectively marketed.
The lender is presented with a contract, accepted, signed and dated by the seller, along with a completed short sale package and narrative explaining the necessity of the proposed short sale.
With lender approval in writing, the offer and sale closes as usual.

Information provided by Thomas J. McGroder, ABR,GRI, Thomas J. Real Estate, Inc. Licensed Real Estate Broker, Registered HUD Broker. www.thomasjrealestate.com

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8 Tips for finding your new home

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Ask The Real Estate Professional

How Does Radon Get Into Your Home?
Part 2 of a series

Radon is a radioactive gas. It comes from the natural decay of uranium that is found in nearly all soils. It typically moves up through the ground to the air above and into your home through cracks and other holes in the foundation. Your home traps radon inside, where it can build up. Any home may have a radon problem. This means new and old homes, well-sealed and drafty homes, and homes with or without basements.
Radon from soil gas is the main cause of radon problems. Sometimes radon enters the home through well water. In a small number of homes, the building materials can give off radon, too. However, building materials rarely cause radon problems by themselves.
Radon gets in through cracks in solid floors, construction joints, cracks in walls, gaps in suspended floors, gaps around service pipes, cavities inside walls and sometime through the water supply.
Nearly 1 out of every 15 homes in the U.S. is estimated to have elevated radon levels. Elevated levels of radon gas have been found in homes in your state. While radon problems may be more common in some areas, any home may have a problem. The only way to know about your home is to test.

Part 3 will be added next week.

Ask The Real Estate Professional

I’m often asked what is Radon Gas?

Radon is a cancer-causing, radioactive gas.
You can't see, smell or taste radon gas. But it may be a problem in your home.
Radon is estimated to cause thousands of deaths each year. That's because when you breathe air containing radon, you can get lung cancer. In fact, the Surgeon General has warned that radon is the second leading cause of lung cancer in the United States today. Only smoking causes more lung cancer deaths. If you smoke and your home has high radon levels, your risk of lung cancer is especially high.
Radon comes from the natural (radioactive) breakdown of uranium in soil, rock and water and gets into the air you breathe. Radon can be found all over the U.S. It can get into any type of building — homes, offices, and schools — and result in a high indoor radon level. But you and your family are most likely to get your greatest exposure at home, where you spend most of your time.
Information provided by Thomas J. McGroder, ABR, GRI, SRES, Thomas J. Real Estate, Inc. Licensed Real Estate Broker, Registered HUD Broker.

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Buyer Representative

“ASK THE REAL ESTATE PROFESSIONAL”

As an Accredited Buyer’s Representative I am often asked the question what’s the difference between a Customer and a Client?

For example, if you’re a client, a buyer’s agent will seek to negotiate the most favorable transaction terms for you-and will not disclose any material facts about your situation that could hurt your negotiating position.

If, however, you are only a customer, a buyer’s rep may not be in a position to answer even basic questions, such as “Why are they selling?” or “Is this home priced competitively?” This is because they are acting instead as a sub-agent for the seller.

Your services will vary, depending on your status.

If you are a Customer (no fiduciary relationship), an agent will:

• Maintain loyalty to the seller’s needs
• Keep information about the seller confidential
• Provide just the material facts
• Only provide price information that supports seller’s listing price
• Protect the seller
• Negotiate on behalf of the seller
• Attempt to solve problems to the seller’s advantage

If you are a Client (fiduciary relationship), your agent will:

• Pay full attention to your needs
• Tell you all that they know about the seller
• Keep information about you confidential
• Provide material facts as well as professional advice
• Provide price counseling based on comparable properties
• Protect and guide you
• Negotiate on your behalf
• Attempt to solve problems to your advantage and satisfaction

Not every state requires a signed Buyer’s Representation Agreement to create an agency.

Information provided by Thomas J. McGroder, ABR, GRI, SRES, Thomas J. Real Estate, Inc. Licensed Real Estate Broker, Registered HUD Broker.

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Why Should I Use A Buyer Representative

“Ask the Real Estate Professional”

What is a Buyer Representation Agreement?

5 Reasons to Sign

A Buyer Representation Agreement is a legal document that formalizes your working relationship with a particular buyer’s representative, detailing what services you are entitled to and what your buyer’s rep expects from you in return. While the language used in the document is formal, homebuyers should view it as an important and helpful tool for clarifying expectations, developing mutual loyalty, and most importantly, elevating the services you will receive.

1. Receive a higher level of service. If you’ve formalized an agency relationship with a buyer’s rep, you can expect to be treated like a client instead of a customer. What’s the Difference? Clients are entitled to superior services, relative to customers. While the details vary from state to state and from one buyer’s agent to another, you can generally assume that being a client means that you’ve formed a fiduciary, or agency relationship with your buyer’s rep.*

2. Get more without paying more. In almost every case, home sellers have already

agreed to pay a buyer’s agent’s commission. If they haven’t, you can ask your buyer’s rep to avoid showing you any such homes. Or you can still view the home, knowing that you’ll need to factor your agent’s commission into any offer you may write. While buyers rarely pay real estate commissions, this is an important detail you’ll want to discuss with your buyer’s rep and clarify in their representation agreement.

3. Avoid misunderstandings. A buyer’s Representation Agreement clarifies

Expectations, helping you understand what you should and shouldn’t expect from your buyer’s rep, and what they will expect from you, which usually centers on loyalty. 

      

 4.  Agency relationships are based on mutual consent. While most representation             

            agreements specify a time period, they can be terminated early if both parties 

            consent. Most buyers’ reps are willing to end the agreement early if the working

            relationship isn’t going well. Some buyer’s reps also offer representation

           agreements for as little as one day! Giving both parties a brief trial period to

           explore working together. 

      5.
Strength as a team. When you and your buyer’s rep work together within a

            formalized relationship, you have created a team dedicated to helping you a

            achieve the best possible home-buying experience.