What Does a Buyer’s Agent Do?
A buyer’s agent plays a crucial role in guiding prospective homebuyers through the complex process of purchasing a property. From the initial stages of understanding agency relationships and securing necessary consents, to navigating legal and financial intricacies, a buyer’s agent is there to support and educate their clients. They provide invaluable insights into market conditions, property types, and neighborhood characteristics, ensuring that buyers are well-informed and confident in their decisions. By collaborating with lenders, setting up customized property searches, and negotiating offers, a buyer’s agent helps streamline the home buying journey, making it a smoother and more rewarding experience.
Here are a few things a buyer’s agent will help with:
Pre-Contract
- Explain agency relationships and get state required legal consent to represent.
- Inform buyer of the REALTORS® Code of Ethics and broker’s business policies
- Explain how compensation is paid, who pays it, and the options for paying it
- Discuss the pre-approval process as the foundation for a purchase
- Provide quality lender referrals
- Seek to understand motives, timeline and important details of move
- Learn buyer’s wants and non-negotiable needs as well as must not have in a home
- Understand buyer’s budget and help them know what will be needed financially
- Help buyer understand pros and cons of types of properties within their budget
- Collaborate with lender to determine an affordable purchase price including taxes,
insurance, HOA, etc - Set up a customized search to locate suitable properties for consideration
Education
- Communicate updates to laws, policies, guidelines and procedures as they
occur - Explain Fair Housing Laws
- Provide a buyer advisory for review
- Explain what to look for in the seller property disclosures
- Reassure buyer that their information is kept confidential
- Explain what is and what is not disclosed in our state by the seller
- Provide info on checking sex-offender registry, crime statistics, etc.
- Discuss available resources to learn more about prospective neighborhoods
- Review wire fraud advisor
- Disclose
Preparing
- Explain the timeline for house hunting, mortgage approval, and cosing process
- Explain the impact on local market conditions
- Show sale to list price statistics for properties in the area
- Inform buyer about popular home features
- Identify average days on market
- Share the dangers of using the price per square foot to figure home values
- Explain the concept of absorption rate and how it impacts the buying process
- Indicate current listing months of inventory
- Share estimated potential out-of-pocket costs to complete the transaction
- Assist the buyer in analyzing the loan estimates
- Help the buyer account for the complete costs of homeownership
- Match buyer’s needs to available properties
- Help buyer select for viewing those homes that fit their needs and rank
- Review trends and home improvements that add or subtract value
Previewing Properties
- Scout properties as they become available
- Call Listing agents for status and details
- Map tours and schedule showings
- Provide access to listed properties and tour
- Educate the buyer on the immediacy of new listings appearing in a local MLS and the lag
time for them to appear on some websites - Research and assist on all unlisted properties the buyer wishes to see
- Preview properties if needed for buyer if they are out of town
- Network with other agents to source properties not yet in their local MLS
- Search coming soon opportunities and share
- Contact homeowners in focus areas to see if they are considering selling
- Set up an automated email alert system that immediately notifies the buyer of properties
that fit the discussed requirements
Previewing Properties: continued - Arrange a tour of areas and points of interest
- Provide resources containing neighborhood information on municipal services, schools, etc.
- Inform the buyer of negative aspects that may result in issues that could impact value
- Collect and share any other vital information on available homes
- Help the buyer decipher public property and tax information
- Collect and share pertinent data on values, taxes, etc.
- Help narrow results to identify top choices
- Pull property information, disclosures and improvement details
- Compare properties shown to buyer’s needs list to review
- Constantly re-evaluate buyer’s needs and refocus property showings to fit those needs
- Suggest that the buyer learn more about the neighborhood prior to making an offer
Negotiating Offers
- Prepare a comparative market analysis (CMA)
- Contact listing agent to find out seller motivation and wants in negotiations
- Prepare the buyer to have the most attractive offer in the current market
- Explain common contract contingencies and protective clauses
- Prioritize contract negotiation goals with the buyer
- Help create a negotiating strategy
- Prepare the buyer for a multiple-offer situation & develop negotiation tactics
- Use strategies to maintain a competitive position
- Recommend optional contingencies and explain the pros and cons
- Prepare the contract and addenda to convey a clear, attractive offer.
In summary, a buyer’s agent is an indispensable partner for anyone looking to purchase a home. They offer expertise in everything from financial planning and market analysis to property evaluation and contract negotiation. By prioritizing the buyer’s needs and interests, a buyer’s agent ensures that their clients make informed decisions, ultimately leading to a successful and satisfying home purchase. Whether it’s navigating the complexities of the housing market or providing peace of mind throughout the process, a buyer’s agent is committed to helping buyers achieve their real estate goals.
Looking to buy or sell?
Buying a home can be one of the most exciting experiences of your life. This can be true whether you’ve purchased several homes or you’re preparing to buy for the first time. With the right support system and the help of a trusted RE/MAX® professional, you can make the most informed decisions.