Buyers Agent VS Listing Agent


– Should I use a buyer’s agent or should I go directly
to the listing agent? This is a question I’m sure a lot of you are asking yourselves
if you’re thinking about buying a home. I know that the thought
is that if you go directly to the listing agent, you’re
gonna get a better deal. ‘Cause you’re gonna have a direct line and the listing agent has an interest in working with you to make
a little bit more money. And that kinda makes sense. I think that if you’re
an investor, if you’re a savvy investor, you’ve
bought plenty of homes and you kind of know the ropes. I think you know, you kind
of go with your best judgment and you might go directly
to the listing agent to maybe get a better deal. Or maybe just have a direct connection. Now for the regular buyer, if
you’re a first time home buyer or like most buyers that buy a home every maybe seven, 10, 15 years. For you, I would really
recommend to use a buyer’s agent. And one of the simple reasons is because buyer representation is free. So if you have the opportunity to have a buyer agent represent you and only worry about your interests and it’s free to you, then why wouldn’t you just
take that opportunity? That buyer’s agent, if
you use a local agent, is experienced in that market. And they’ve been there and they know where the good spots are,
were the bad parts are. They might know certain things about that area that you don’t know. And instead of trying
to save a couple bucks and go direct, I think
it’s just better to have somebody to represent
your interest, you know. The other thing about
a buyer’s agent is that once you start working with them longer, especially if they’re a local expert, they’re gonna have a good idea
of what you’re looking for. So you go out and look at a
home and then you tell them, “You know what, I really want a home “that has a big bathtub,” for example. Now they know that, so
now you have another set of eyes with that buyer’s
agent who knows the market and knows which homes
have the certain things that you want and they’re
gonna be on top of it. And they’re gonna also help you try to find something like that. If you keep going to listing agents, they’re not gonna know what you want. You’re not gonna have any
continuity on your search. And it’s gonna take you longer. I mean really you’re just gonna struggle with it a little bit more
because you don’t have that other set of eyes. Agents are full time
agents, you know you’re able to search online. There’s all the information
that you need really online. But we’re doing this full-time. So it’s good to have somebody
doing that full-time for you. Now also, if you go directly
to the listing agent and you end up in contract
with that listing agent. And you know sometimes I’m a listing agent as well, of course. That listing agent is gonna
be in a dual agency situation. So what they have to do is they have to represent the seller
’cause really what they told that seller is they’re gonna
get as much as possible. But they also have to represent you. And they told you that they’re gonna get you a great deal on the home. They told you that they’re gonna make sure that you don’t buy a lemon. They’re gonna make sure
all these things for you. So really we have both of these interests on two ends and really what you have to end up doing as dual
agent is kind of meet in the middle somewhere. You’re really not getting
true representation when the agent is representing both sides. So maybe you’ll get a
little bit of a discount on the commission or something like that. But you’re not necessarily
gonna get the best deal. So I think that that’s a huge thing for using your own buyer’s agent. The other thing is, is that listing agent is trying to sell you that one home. A buyer’s agent is gonna
get paid again by the seller so they don’t have a
bias to try to sell you just that one home. If you have a good ethical buyer’s agent, they’re gonna take you
around into that area and they’re gonna show you
all the homes in the area. And they’re gonna tell
you the pros and cons because they just wanna
sell you a good home and they wanna sell you any of the homes that you’re looking for. They’re not trying to just pigeon hole you into that one home. Like that listing agent might do. So, that’s another reason
why they’re kinda looking out for your interests a little bit more. Now once you have your offer accepted and you have a buyer’s
agent, that agent’s gonna review the contracts with you. They’re gonna go to the
inspection with you. And it’s happened to me in the past. Where there’s just something that’s really wrong with the house
during that inspection. You know one time I went to a house and there was a mousetrap
and there was rat droppings under the house. And you know what, my
client didn’t wanna buy it. She just didn’t feel good about it. She was having a baby
and she just didn’t feel that it was clean. Or that they were gonna have problems with rodents under the house. And she canceled the deal, you know. And I as a buyer’s representative,
had to go with her. You know I said, “You know what, “if you don’t feel comfortable with it “we have to cancel the deal.” Now if you’re in a contract
directly with the listing agent and in you’re in that same situation, it might not be as easy to do. Because that listing agent,
once you leave from that home and you go with somebody else, they’re not gonna make
a commission off of you. So you know, what I did in that
case, is we just showed them other properties and eventually, we ended up finding something because
I know that what I’m doing is I’m trying to represent that buyer. So that’s very important. Another thing is off market properties. If you’re working with a buyer’s agent and they work for one
of the local brokerages, they’re meeting with all the other agents in their brokerage. They have other listings in the area that might be coming soon. They have kind of a pulse of the market. And they might be able to connect you with something before it
even gets on the market. So you know, I think there’s a lot of benefits to working
with a buyer’s agent. Again, it’s free so
why wouldn’t you do it? So that would be my recommendation. If you’re looking for a home out there and you’re just a regular buyer, not like a savvy investor
buying your 10th, 15th, home. You’re just a regular buyer,
first time home buyer. Or just somebody who’s
gonna move into the home. I really do recommend that
you work with a buyer’s agent. So I hope that helps bring a little bit of clarity to the question. I think that it’s really your
decision but if I were you I would go with a buyer’s agent. (upbeat music)

Daniel Ostrander

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