Debunking the Myth: You Will Not Save Money By Not Using a Buyers Agent

I have been hearing a lot of buyers talking about how if they don't hire their own agent it will save them money in the long run because they will only have to pay one agent. Then I read this post by a colleague in Massachusetts www.BuyersBrokersOnly.com that did a great job setting the record straight.

• The Commission Is Not Dependent on the  Number of Agents Involved.  (Or, Price is Not Determined by Commission.)

Listing Agents reach an agreement with their clients - the Sellers - as to how much commission is to be earned upon the sale of the home.  It is negotiated between them and is part of the Listing Agreement.  The Listing Agent usually then determines how much he/she is going to offer a Buyers Agent for bringing a buyer to the table.  If the Listing Agent procures the buyer him/herself, the total commission is the same - he/she just does not have to split it with another agent.  It has no impact on the Seller's proceeds or home price.

• A Listing Agent will not (and should not) negotiate on behalf of a Buyer.

The Listing Agent owes a fiduciary duty to the Seller.  Period.  Their job is to get the highest possible price for their client - the Seller.   A Buyers Agent's fiduciary duty runs to the Buyer.  Their job is to get the lowest possible price for their client - the Buyer.  Dual Agency - representing both parties - is allowed in certain states (like Massachusetts) upon disclosure.  But really, would you trust anyone to represent both sides of the same transaction? It's a conflict of interest.

• Most Buyers Agents Charge the same as every other Agent to their Buyer Clients. 

There is a misconception that it costs money to use a Buyers Agent.  While some do charge a fee, many (like myself) do not.  We get paid upon the sale of the home by whatever commission split the Listing Agent is offering. 

• Hidden Costs of Not Using a Buyers Agent.

Buyer agents are more than door openers.  Besides showing you the property, a buyers agent will assess the home, along with its location and price and will point out potential problems to you that you may not see.  A buyers agent will look at sold comparables to help determine an appropriate offer price and neogtiating strategy.  And, buyers agents are with you along the way to help you meet deadlines and negotiating the rest of the process - home inspections, repairs, financing contingencies, etc.  For a complete list of services provided by a buyers agent, see my earlier post about What to Expect from Your Buyers Agent. Without someone to guide you and advocate for you throughout the process, you could miss dates and deadlines that could end up costing you money.

The truth is that having your one agent can be worth its weight in gold! Nationally, Home Buyers that use an EBA save on average 5% more than buyers who don't.

If you have Excellent Credit, your down payment ready, and are going to be purchasing a home in the next 6 months we would love to show you how we can get you more home for less money!

Tell us about the home you want.

Email Us

BY PHONE:

Cleveland – 216-772-7298

Akron – 330-826-1282

Canton – 330-956-3851

So much more than Traditional Real Estate

At HBE, we don’t just help you discover a home. We help you get more home for less money and make your experience more enjoyable!

Where traditional Real Estate Agencies stop, HomeBuyer Experts has only just begun. As the process of home buying begins to unfold, we’ll help you through the hassle of finding trustworthy local home-related contractors. Feel free to draw from our regional connections to find quality professionals for less. Need your heating ducts cleaned? Need to know where the local stores are? How about something as simple as directions to your new house that you can give out to friends and family? How can you get a better deal on a moving service? Who can you trust for quality renovation work? Do you have a list of contractors you can call in emergencies (HVAC, plumbing, electrical)? Who’s the best landscape architect in town for my size home? Who can do a quality kitchen remodel? When you purchase with HomeBuyer Experts you get access to our qualified referral network of local trustworthy companies. If you have Excellent Credit, your down payment ready, and are going to be purchasing a home in the next 6 months we would love to show you how we can get you more home for less money! Cleveland – 216-772-7298 Akron – 330-826-1282 Canton – 330-956-3851 Email – Info@HBExperts.com

Why should I use an Exclusive Buyer Agent?

BECAUSE WE ELIMINATE THE

CONFLICT OF INTEREST

IN REAL ESTATE!

The definition of an Exclusive Buyer’s Agent is an agent who acts solely on behalf of the buyer, and never takes listings. In addition, none of the agents in their company ever take listings.

What Does it Mean to Say “I Represent the Buyer Exclusively”

• No Salesmanship: Exclusive Buyer’s Agents do not sell real estate. They deliver a service. An EBA must deliver all pertinent information for the buyer-client to be able to make an informed decision on whether or not to purchase the proposed home.

• No Pressure:   Exclusive Buyer’s Agents are paid professional consultants. They never pressure their client to make a decision to purchase a particular property. Nonetheless, when appropriate, and still without exerting undue pressure, the broker must advise the buyer-client of the ramifications of such acts as delaying decisions and making inappropriate offers.

• Reasonable Care and Diligence:   An Exclusive Buyer’s Agent is responsible for researching a targeted property and its surroundings to discover all material information prior to a buyer-client making an offer to purchase.

• Negotiator:   The exclusive buyer broker has assumed the responsibility to make sure their buyer-clients never unknowingly overpay for the home being purchased. It is the Buyer’s Agents job to do a market analysis on every home the buyer-client intends to make an offer on. If the Buyer’s Agent knows of any information regarding the sellers willingness to accept less than the listed price, it is their fiduciary responsibility to inform the buyer-client of such facts. Loyalty:     An Exclusive Buyer’s Broker must always think of the buyer-client before him or herself, even when it may not be in the EBA’s best interest. An Exclusive Buyer’s Agent must always be loyal, to the buyer, never doing anything that would intentionally jeopardize the buyer-client’s best interests.

• Obedience:   An Exclusive Buyer’s Agent owes absolute obedience to the buyer client provided that the Agent is not asked to violate any State or Federal statutes or regulations. The EBA has the job to search out the entire area to the best of his / her ability for the homes that best meet their clients needs and not to waste time showing their clients home that does not meet their criteria. Doing otherwise would be a breach of contract between the EBA and the client.

• Disclosure:   An Exclusive Buyer’s Agent must disclose any information he / she knows about the seller to the buyer-client. An Exclusive Buyer’s Agent must also disclose any pertinent facts about the property and the immediate area known to him / her or, which should be reasonably expected to be known as the representative of the buyer-client.

• Confidentiality:   An Exclusive Buyer’s Agent must keep all sensitive information concerning his / her client confidential, unless the client has given the EBA permission to disclose such information.

• The Contract:   The Exclusive Buyer’s Agent is bound by contract to perform on behalf of the buyer. A buyer should always insist on having a contractual relationship with their Agent. This contract fully obligates and defines the legal responsibilities of the EBA. The buyer client now can have recourse against his / her real estate agent if in fact the agent has not done his / her job thoroughly. In dealings with the seller, an Exclusive Buyer’s Agent should exercise reasonable skill and care in performance of the agent’s duties, deal honestly, fairly and in good faith and disclose all facts known to the agent materially affecting the buyer’s ability and/or willingness to perform a contract to acquire seller’s property that are not inconsistent with the agent’s fiduciary duties to the buyer.

To get the protection of an Exclusive Buyer Agent (EBA)

call HomeBuyer Experts today at

Cleveland – 216-772-7298

Akron – 330-826-1282

Canton – 330-956-3851

Email – Info@HBExperts.com

Financial Expertise

Everyone has a different financial story.

What’s yours?

For many, buying a home is the largest financial decision they’ll make in a lifetime. Now you can make it with confidence. HomeBuyer Experts has hired some of Northeast Ohio’s top financial consultants who have the training and experience to give you the answers to these essential questions and more:

• How can you maintain the best credit necessary for pre-approval?
• How much can you afford without strapping yourself?
• What’s the smartest mortgage program for your financial situation?
• How can you best pre-qualify for mortgage approval?
• How do you prepare your balance sheet for presentation to lenders?
• How do taxes work when you purchase a home?

We’ll start with pre-approval and stay with you through closing to ensure you achieve the best loan, at the lowest possible expense.