What is a buyer’s agent, you say? You may hear this term, along with other jargon, when looking into buying a home. Luckily for you, we’re here to give another installment of the ABCs of mortgage to help you know the definition of a buyer’s agent.
What is a buyer’s agent?
This is the real estate agent who represents the homebuyer. This person is there exclusively to represent you, the homebuyer. They can help negotiate offers, recommend other professionals, like home inspectors, and act as a buffer between you and the sellers. Don’t worry about paying them, because buyer’s agents are generally paid by the seller.
The difference from a real estate agent
So what’s the difference between a buyer’s agent and just any other real estate agent? Well, surprise😱 – there really isn’t one. A buyer’s agent is actually short for a real estate buyer’s agent. Buyer’s agent is more of a naming convention to help know that the real estate agent is currently acting as the agent for the buyer, as opposed to the seller of the home. There may be some real estate agents out there that specialize specifically as a buyer’s agent. Or even a seller’s (or listing) agent, for, you guessed it – the behalf of the seller. But at the end of the day, they are still a real estate agent.
Do I need a buyer’s agent?
One of the biggest benefits of utilizing a buyer’s agent is that, the National Association of REALTORS (NAR), an agent can help assure you the best deal on a home than you could find on your own. Not only that, but NAR also states that with the help of an agent, you are more likely to find the kind of home you are looking for. They have access to a lot more information than the average person would when it comes to listings. An agent is also trained to be a skilled negotiator, and you will find that this trait, along with their thorough knowledge of the industry, going rates and trends, that you will be able to benefit more than you probably thought you could.
Sheesh. Well, what will one cost?
You must’ve not been paying attention earlier. But it’s ok, we’ll let this one slide. Buyer’s agents are paid for by the seller! Therefore, you won’t really have to worry about it. In case you just wanted to know, the cost is typically 3% of the home’s sales price. But as a buyer, it won’t usually be your problem to worry about 💁🏽♀️💁🏽♀️.
Got it! What do I do now?
I’m so glad you asked. If you or someone you know is looking to buy a home, connect with a rockstar buyer’s agent in your area. Fresh out? Or just don’t know where to go? If you contact one of our local loan officers, chances are, they’ll be able to help explain your options to you. But make sure you also talk to that loan officer about starting the pre-approval process. That way, you’ll know how much you may qualify for and what your budget is before shopping for a home.
No one likes feeling like they’re the only one in the room that doesn’t know what’s going on. So keep tuned to our ABCs of Mortgage series to be in the know when buying a home.