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While military homebuyers don’t need a buyer’s agent to purchase a home, the right question to ask is probably, “What can a buyer’s agent do for me?” A buyer’s agent is an expert real estate advocate who works on the buyer's behalf to help them learn how to buy a house and secure a property for a fair price.
What Is a Buyer's Agent?
Many first-time homebuyers are often unaware of the steps to buying a house, and that there are agents who work specifically for the buyer and others who work for the seller. Each agent’s goal is geared toward the best outcome for their client, but they each have completely separate goals. More often than not, sellers hope to earn as much money as possible on the sale, while buyers want to buy a home within their set budget.
The buyer’s agent is legally licensed to ensure their client has reliable representation during the entire home-buying process. With their expert knowledge of the local market and the intricacies of the home purchase paperwork, agents help clients select a home that fulfills their diverse needs. From the start of the home buying journey to the closing date, their job is to protect their clients from making mistakes.
Need more information about the home buying process before contacting a buyer’s agent? Download our free resource, Finding Your New Home: House Hunting Hints & Mistakes to Avoid.
What's the Difference Between a Buyer's Agent and an Exclusive Buyer Agency?
Here’s what the National Association of Exclusive Buyer Agents (NAEBA) has to say:
“Exclusive Buyer Agents are real estate professionals who work in real estate offices that always work for buyers only, never sellers. Such offices never list homes for sale or represent sellers. These offices are referred to as Exclusive Buyer Agencies, Exclusive Buyer Brokers or Brokerages, and Exclusive Buyer Representation Companies. The key factor is that no real estate licensees at such companies take listings or represent sellers.”
It’s good to understand the difference between a buyer’s agent and an Exclusive Buyer Agency. This is because a standard buyer’s agent may be with the same brokerage where a colleague is serving as the selling agent in a transaction. In this scenario, some buyers feel there's a conflict of interest regarding their best representation.
There are dual agents—those who work on behalf of both the buyer and seller. Sometimes, a new home buyer may directly contact the seller's agent, and they’ll express interest in the property. In such cases, the seller's agent can become a dual agent, working with both the buyer and the seller to facilitate the transaction.
8 Smart Reasons to Hire a Buyer's Agent
The National Association of Realtors Quick Real Estate Statistics cites that 88% of buyers recently purchased their home through a real estate agent or broker. This statistic clearly shows that many buyers find significant benefit in working with a buyer’s agent.
Following are eight specific reasons to hire a buyer’s agent:
1. Buyer’s Agents Have Local Insight
A buyer’s agent is boots on the ground in their local market. They watch the highs and lows, trends, and marketing tactics used by selling agents. They have intel that the buyer won’t find on their own, especially for those who are on a short timeline or buying a home from afar, as many service members have to do.
2. Buyer’s Agents Are Experienced Home Investigators
Most days, they’re out in the neighborhoods eyeballing details of homes the buyer may have never thought about. Although they won’t claim to be home inspectors, they certainly have more experience noticing details that speak volumes about the condition of the house.
Buyer’s agents pay attention to deal breakers, or at a minimum, they pay attention to the negotiating points. They also assess for signs of past water damage, mold, pests (including rodents and insects), the age of appliances and major systems like the HVAC, and the condition of the roof.
Learn more about why you need a home inspection.
3. Buyer’s Agents Are Excellent with Numbers
Although they will refer you to preferred mortgage professionals to verify financial details, buyer’s agents have a firm handle on the big picture. They’ll also have the knowledge to explain the favorable and unfavorable terms.
This is especially helpful if a military or veteran home buyer is considering using the VA loan benefit. There are many benefits to the loan, but there are also guidelines and restrictions to adhere to.
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4. Buyer’s Agents Have Intense Organizational Skills
Home showings, open houses, inspections, closing documents, and the inundation of phone calls and texts all require a skilled hand to communicate in a timely fashion. Agents are known to deftly meet with clients, juggle traffic, and reschedule meetings all day, every day.
5. Buyer’s Agents Know How to Write Contracts
Not only do buyer’s agents know the legal details required in real estate contracts, they know how to write them in a way that paints the buyer in the best light. If done well, your contract will stand out from competing contracts. Experienced buyer’s agents do not make critical mistakes, such as missing or wrong information, which can lead to a rejected or ignored offer.
6. Buyer’s Agents Have Established Relationships with Other Real Estate Professionals
A buyer’s agent will work hard for the home buyer’s best deal, but they aren’t legally permitted to handle the tasks of a real estate attorney, mortgage lender, home inspector, and other professionals required along the way. After years of working in the real estate industry, the buyer’s agent likely has a list of professionals to choose from, with multiple choices in each category, to meet their clients’ varying schedules and other needs.
7. Buyer’s Agents Have Honed Their Negotiating Skills to Work in Their Client’s Favor
Jumping into a business deal worth hundreds of thousands of dollars without a substantial skill set for negotiation immediately puts new buyers at a disadvantage. A solid and sensible offer requires a well-researched comparative market analysis, which is a challenge for a home buyer without intimate knowledge of the surrounding neighborhoods.
A buyer’s agent is especially crucial in fast-paced and historically challenging locations, like Washington, DC. Buyers in these cities often contend with cash offers, multiple contracts, and waived contingencies. Buyer’s agents should have tricks up their sleeves to keep their client’s offer competitive in situations like these.
8. Buyer’s Agents Will Keep the Contract on Track and the Buyer Updated
The steps to buying a house, from house hunting to closing, can be a taxing process. Buyers often need regular reassurance to stay positive. Their agent will keep them up to date with details and changes they need to know in hopes of warding off extra worry. Expert management of the transaction schedule ensures that any unforeseen circumstances are handled appropriately, keeping the closing date close to the original timeline.
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Reasons Buyers Choose Not to Work with a Buyer's Agent
Some buyers aren’t sold on using a buyer’s agent when learning how to buy a house for the following reasons.
Saving Money on Commission Fees
Likely the number one reason most buyers avoid a dedicated buyer’s agent is the thought that they’ll save money on the agent's commission. Buyers are generally responsible for their agent’s fees, but there may be some room for negotiating with the seller regarding who pays for the buyer agent commission.
The Process of Finding a Compatible Real Estate Agent
Even with referrals from friends and family, clicking with the person who is about to guide you through spending hundreds of thousands of dollars is an important factor in the buyer/agent relationship. It's often suggested that the buyer should interview multiple agents in order to find one who fits their personal home-buying style. As a service member, take advantage of the extra level of skill a Military Relocation Professional (MRP) has. They’ve worked hard to learn the ins and outs of working with a military family. Even better, hire a military spouse or veteran agent with an MRP.
Buyers Who Want an Agent’s Sole Attention
Real estate agents typically take on several clients at a time, and they work on all of their house hunts simultaneously. Buyers have to be cognizant of the fact that the agent is managing open houses and home showing appointments, conducting research, and drawing up paperwork for multiple buyers with many time constraints.
For most professionals, serving multiple clients isn’t a barrier to conducting quality transactions; some even thrive in the hustle. A buyer may wish for an agent to concentrate solely on their house hunt (for instance, in the case of a military home buyer on a compressed schedule). While this sounds like an ideal scenario, it’s rarely realistic. If the home buyer prefers an agent’s sole attention during their home shopping, they can request it. It will likely incur extra fees, and it may not be feasible.
There are many steps to buying a house. If a buyer lacks extensive real estate experience, feels uneasy about finding a home, doesn't know how to hire experienced professionals, and is daunted by legal paperwork, then a buyer's agent is a sensible investment in the entire process of buying a home. A dedicated advocate by your side is a reassurance that is hard to beat.
By Dawn M. Smith
MilitaryByOwner is here to help with the home buying process. Learn what to look for when househunting with our free guide below.
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