Why use a Buyer’s Agent?

Real Estate transactions have a lot of moving parts. No home is perfect and there is no set standard for pricing. Add in negotiations, bidding wars, the mysteries of older homes, and it can be a daunting task, Oh, and don't forget, you are about to put around $1,000,000 dollars of your hard earned money on the line.

Los Angeles is an extremely competitive Real Estate market, especially if you are looking for a historic property or something special. For example: If you’re buying a bungalow, rather than just picking any realtor in Pasadena, or scanning market listings, you’ll want an agent who can help you find off-market properties for sale. This can get you ahead of other potential buyers.

It is for these reasons that Michael will always advise home buyers to use a Buyer's Agent, especially in the greater Los Angeles area. It’s good insurance and it costs you nothing.

How is a Buyer’s Agent paid?

Home sellers have a Listing Agent represent them. They help prep the house, price the house, market the house and review offers. These are just the highlights, believe me, there is a lot more involved. In return, they receive a commission on the house once it completes the sales process. This is usually 6%.

If the buyer does not have a Buyers Agent to represent them, then the Listing Agent keeps the entire 6% commission. If the buyer of the home has a Buyer's Agent, the Buyer's Agent and the Listing Agent split the commission (usually 50/50). This is how a Buyers Agent is paid, the Buyer pays them no fees, they only earn if you buy a house. 

How does a Buyer’s Agent protect me?

Outside of working for you for free, a Buyers Agent will do a lot to protect you. A good Buyers Agent will help find listings that you generally may not find on your own. These will include off-market properties. They will also review the sales history of the house and confirm construction permits. Additionally, they’ll provide you with pricing strategy information based on other sold homes and get you access to properties outside of open houses. During the escrow process, a Buyer's Agent will review inspection reports with you and negotiate for critical repairs. They’ll also ensure you are protected throughout the process.

Why isn’t a Listing Agent enough?

All Realtors have a fiduciary duty, to protect their client and work to get them the best possible deal. A Listing Agent (or Seller’s Agent) has a fiduciary duty to the home seller. It is tough for them to have fiduciary duty to the buyer as well.

It is similar to lawyers and divorces; you wouldn't want the same divorce lawyer as your spouse, you want someone to be looking out for you. Make things easier on yourself during what could be a stressful transaction and hire a Buyers Agent. Remember it costs you nothing?