Are there any disadvantages to using a buyer's agent when looking for that first home?

Answer 1

I have had nothing but disadvantages from signing for a buyers agent. Everything said above is the opposite of what happened for me. The contract does protect a realtor's commission.

If you sign one, I suggest you only sign for a short period (like one month) and have ZERO days protection/grace period. You can always sign another one if you want or extend the existing one at the end of the period if you choose. This way if you find that they are not working in your best interest after termination or expiration you can both walk away without further obligation. Any agent who is unwilling to do one month trial with zero days protection/grace probably sucks, so run away fast because they probably suck. A good ethical agent will have no problem with this.

Answer 2

A buyer's agent will work to negotiate the best price, ensure the property is inspected, and make sure you have the representation you need. Things you tell a buyer's agent remain confidential. Using a buyer's agent also means that you will be shown homes that are For Sale By Owner (FSBO). It might seem like using a buyer's agency means you are going to pay more -- but that's not always the case. Although there are situations where agents charge an hourly fee or a flat fee for the service, in most situations they are simply working for the same commission that is paid by the seller and split it with the seller's listing agent. While there is still some argument that this method leaves the incentive for a higher sales price, buyer's agencies counter by pointing out that a $10,000 savings for the buyer only amounts to a $150 difference in commission for the buyer agent. They feel that the benefit of your satisfaction with their service and the word of mouth promotion they will get outweigh the loss of this small amount of money.

The type of agreement you sign with a buyer's agent will dictate how the arrangement works. A limited agency agreement may stipulate, specifically, for what the agent will be paid. For instance, the agreement might state that if you find a home on your own, then no commission will be paid. Basically, you can negotiate the terms of the agreement up front so both you and the agent know what to expect and are comfortable with the relationship. Typically, however, if the agent has been otherwise very helpful and attentive, most buyers still pay some type of commission even if the agent was not involved in finding the home they end up purchasing.

Answer 3

Theoretically, there should only be advantages because now that agent works for you and not the seller. The only problem I can think of is if you end up not liking the agent or the job he/she is doing. You are in a contract with that person for a certain length of time and probably would not be able to get out of the contract until it expires. All in all, the advantages would outweigh any disadvantages. Here's an example: If you have a buyer's agent and you make an offer on a house of $150,000 but you tell the agent you would be willing to go up to $160,000 then that agent, as a buyer's agent, is to keep that information to himself. If he's not a buyer's agent then he works for the seller (even if he doesn't have the house listed) and he should tell the seller you would be willing to pay more. As a buyer's agent his job is to help you get the best deal but as a seller's agent his job is to get the seller the best deal. Hope that makes sense.

Answer 4

All have given GREAT ADVICE about buying houses. My wife and I have owned 3 single family houses ourselves, and I have participated in several For Sale By Owners (FSBOs) that included helping coworkers, family and neighbors.

One important tip I did NOT see recommended or was missing when you are more or less are interviewing to determine which Buyer's Agent you will select to represent you is "ASKING UP FRONT before you sign the contract agreement that he/she will represent your interests is ASKING IF HE/SHE IS ABLE and WILLING TO SHARE/PART OF THE SELLING PORTION OF THE COMMISSION." Personally you have nothing to lose bec worse case they will say "NO" and FYI note it is not within the policy of some of the larger real estate brokers to share or give back part of the commission however, I know happy buyers who did get 1 % back during settlement. Most importantly such a request & agreemrnt needs to be done upfront and agreed upon before you sign and accept their services & representation bec asking too late after the fact will most likely get you nowhere other than a headache bec you have signed a contract & legal agreement between 2 competent parties where consideration has been exchanged so it would almost be impossible to change afterwards bec the Buyer's Agent would be getting nothing in return for that change. If the contract representaion did expire after so many months where you found nothing, then once it expired before entering into a new Buyer's Agent agreement, now the circumstances would change. Best of Luck!

Answer 5

Absolutely not. Unless you engage the services of a buyer's agent (in most states), the real estate agent with whom you work is obligated to work in the best interests of the seller, not the buyer. A buyer's agent is contracted to work in the best interests of the buyer. 99% of my business with buyers is done under a buyer agency agreement.

I sleep better each night knowing that I am working in the best interests of the person with whom I am working !

Answer 6

Having purchased 6 houses I speak from experience. First your buyers agent represents YOU. Their job is to find you the house you want and help negotiate the deal you want. To protect your interest ever step of the way. I bought one house without having my own agent. It will never happen again.

Answer 7

Advantage: If you choose the person based on reputation and experience, you'll come out fine.

Disadvantage: You choose someone based solely on their advertising. If in a team setting, the top agent may work with you only 2-3 days. If you don't find the house you want, they may shuffle you down to a junior agent.

Answer 8

No when the person is a buyer's agent then they work for the buyer. If you are buying a house then it is totally to your advantage to have a agent that is working for you.

Answer 9

NONE. You need someone on "your side of the table". You need to buy a house with 20% down and finance it on a 15 year, fixed rate mortgage. The PI TI should be no more than 25% of your take home pay. See bankrate.com for calculators. See daveramsey.com for more info. Good Luck.