Buyer's Agents: Do You Need One?

You are accused of a crime! Needing a good defense attorney, would you ever hire the prosecutor that is trying to put you away?? Would you, never have practiced law a day in your life, put your life in your own hands, and represent yourself and say you will just research what to do?

The answer to these questions is usually a resounding, NO! However, in the Real Estate world, you get more "yes" answers to these questions. Why would someone not want their own representation in what is likely to be the most expensive deal in their life? A lot of reasons come out, some are valid, some are the opposite. Today we go over the role of the Buyer's Agent and why you should, most likely, use one to assist in your transaction!!

By definition, the Buyer's Agent is the representation of the buyer in a real estate transaction, not to be confused with the listing agent, who represents the seller of the property. In Texas Real Estate, it is illegal to practice Dual Agency, which is where the agent represents both the buyer and the seller in the transaction. So for those who contact the listing agent directly to view a property or work towards putting an offer in, keep in mind, the listing agent cannot represent you and will always have their client, the seller's, best interest in mind. In this situation, and others, people still refuse to use a Buyer's Agent and some of their reasons are:

1. Cost - As has always been the case, ALL commissions are negotiable! The seller may agree to pay for the commission of the buyer's agent, or they may not. If the seller elects not to contribute towards this buyer cost, it is on the buyer to negotiate with their agent a flat fee or percentage for their services. For some people just squeaking by with their down payments or other financials, this proves difficult, so they choose to go at it alone. As the laws change and the industry shifts, we will all see how this particular scenario plays out. It's our job as listing agents to explain the benefits of this for, and to, the seller!

2. Personal Decision - Some buyers want the experience of buying a home to be theirs and they feel like by hiring an agent, they will always have someone just "following them around". Batman did not always need Robin after all. Not all Buyer's agents are like this so for those who have this complaint, they should have vetted their agent better or, at minimum, they should have had a conversation with their agent about what they expect and vice versa!

3. Whose Interest is it Anyway? - The "ethics" question is one that some ask. Is their buyer's agent going to steer them towards a more expensive property so they get a higher payday? Once again, interviewing your prospective buyer's agent and getting to know them should alleviate you of this concern. Also, you, as the buyer, can always negotiate a fixed fee for your agent so the price of the home is irrelevant to an agent's fee. 

For those deciding that a Buyer's Agent is the way to go, there are TONS of reasons why it makes sense, including but not limited to:

1. Knowledge and Negotiation - A Buyers agent has access to information that the public does not and will not. They do this for a living and know the speak a tad bit better than a "Google Warrior". They represent you, and only you, and that is meant to level the playing field in the negotiation! Could you hire an attorney? Sure, however, an attorney is not going to run a Competitive Market Analysis(CMA), be able to let you in properties, and have access to all the key information you actually need to know to make a wise decision.

2. Contracts and Time - Sure, if people wanted, as stated above, they can turn into a professional researcher and figure out how to do everything on their own and for most, that would be in addition to their full time job. Even with the internet, there are answers you CANNOT get and you will be going in against someone who can get these answers. Make no mistake, even though most buyer/seller interactions are peaceful, this is still a negotiation over a HUGE asset. Be prepared!

3. The Work - As mentioned in the last two bullets, there is a lot to know when purchasing a home. There are dates that cannot be missed, things that must be ordered and done, ranging from appraisals and inspections to searches and repairs. There is a ton of paperwork with "time is of the essence" clauses. Then on top of all that, YOU, the buyer, has to be responsible for all of the normal parts of organizing a move. 

In Conclusion....

As always, there is a ton of misinformation out there. You can go to reddit, Facebook, Google, etc and type in what you want and believe some guy on his couch eating cereal. Conversely, you can ask a professional and understand if the Buyer's Representation route is the way to go for you. There is a lot of confusion amongst novices and the internet community about all the new laws going into place August of 2024, but in reality, there is not a TON that is changing. Included in that is a buyer and seller's needs to be represented by professionals of competence!