How Much Does a Buyer’s Agent Cost?

The answer to the above question is absolutely nothing. As brokers, we assume this is common knowledge. In fact, many folks, (especially first-time buyers) are unaware that it is the seller who pays 100% of the commissions. Therefore, it is not wise to search for a home without a licensed, experienced broker who is contractually and morally obligated to represent your own best interests. A good broker will warn you of pitfalls and costly mistakes which lurk in many places during the complex search and purchase process.

Indeed, most people have figured this out: According to the National Association of Realtors 90% of homebuyers do so with the services of an agent.

While a prospective buyer can contact the seller’s broker directly to set an appointment to view the property, it must always be remembered that the seller’s agent is working for the seller and will always have his best interests at heart – the sellers broker is contractually obligated to do so. So, if you’re viewing a home without your own buyer’s broker, don’t expect the sellers broker to alert you to potential problem areas with the property or hidden imperfections. You will only hear the good news. Conversely, with a skilled buyer’s broker at your side, the tough questions will be asked that the neophyte is often not aware of. This may involve liens, inspections, flood history, structural integrity, neighborhood concerns, and so many other issues.

Also, a skilled agent can determine if the asking price is a fair one, and may be able to bargain the price down on your behalf based on any of a multitude of factors. Your broker will also negotiate contingencies should you need any, and help you through the labyrinth of paperwork required.

So, how do you find the right agent? A common-sense rule is to look for an agent who works with a company that has a reputation of integrity and has a long history and deep roots in the community. (This is not to say that there are not fine agents working at honorable smaller companies.) But it just seems to make sense to work with a highly respected agent working at a highly respected firm. Much in this regard can be learned from ratings offered at many internet sites. Also, don’t be shy to ask an agent that you are considering working with for some recommendations from past clients. Further, on the agent’s (or company’s) website you can learn a lot about the agent’s philosophy, and any local and professional affiliations he has.

It is also wise to work with an agent who has lived in the area for an extended period, who like the firm he works for has deep roots in the community. A broker with this type of experience will be able to speak with knowledge about the locale. For example, due to his familiarity with the area, he will be able to tell you about the quality of the local school district, crime statistics, development plans, commercial trends, entertainment options, etc.