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The Pros and Cons of Using a Buyer’s Broker to Purchase a Home

November 22nd, 2013 · Leave a Comment

A buyer’s broker, or buyer’s agent, is a real estate agent who works exclusively for the buyer. A buyer’s broker looks out for your interests, while a listing agent will normally be looking out for the seller. So, what are the pros and cons to using a buyer’s broker?

Pros

  • Someone Will Be Working on Your Behalf – Unless you are buying a home from the owner directly, the seller of property will have their own real estate agent negotiating for them and helping them to get the best deal on their home. If you have never purchased real estate before, a buyer’s broker can also help walk you through the process so you don’t feel lost and overwhelmed.
  • Pointing Out Potential Pitfalls – The listing agent has absolutely no motivation to point out to you where you may have issues with the property you are considering. Your buyer’s broker, however, is being paid to do just that.
  • Good Brokers Know the Area – A buyer’s broker can let you know which neighborhoods and local schools are of a good quality, and the ones of which you may want to steer clear.
  • Buyer’s Brokers Can Tell You How Much to Offer – Your broker will look at what similar homes are selling for in the area and analyze the current trends.
  • Someone to Do the Legwork – If you hire a buyer’s broker, you can tell her exactly what you are looking for and allow her to do the legwork in identifying potential homes that match your criteria.

Cons

  • Commission – If you have struck a deal with your broker to pay him a commission based on the purchase price of your new home, he may not have any motivation to negotiate you a better deal.
  • Added Expense – While using a broker makes things easier; it costs you money to do so. If you are able to spend the time locating properties yourself and you have any experience with negotiations, you may be able to do the same things the buyer’s broker was going to do for you for much less.
  • Making the Big Decision – If you decide to use a buyer’s broker, the best way to find a good one is to ask around and look for online reviews. If you are unable to find people in the real world to give you recommendations, look online. On the Internet, you can find reviews on any real estate agent with enough searching.

Once you find your agent, you’ll be asked to sign a contract called a Buyer’s Broker Agreement. This will lock you in with this broker for a set amount of time. Be sure there is a clause in there that will allow you to get out of this contract, should you need to, for your own protection.

Resources:
http://www.buyersadvisors.com/protect_yourself.htm
http://realestate.aol.com/blog/2010/08/09/should-you-use-a-buyers-agent/

Written by Amanda Kostina, a writer who specializes in frugal living pieces for Savings.whitefence.com. Professionals interested in guest blogging can write to info@whatsupjacksonville.com.

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