Who Pays for the Buyers Agent?
What will a Buyers' Agent cost me?
Perhaps the best question is, "What will it cost me if I don't use a buyers' agent?" Purchasing a home without representation is possibly the biggest financial mistake a buyer can make. A Buyers' Agent can guide you each step of the way to prevent costly errors. Failure to find out about defects in the property or the actual value of the property can be expensive mistakes. Additionally, failure to negotiate a deal that works best for you can prove quite costly as well. When you engage the services of a Buyers' Agent, you are owed duties such as care, confidentiality, full disclosure and accurate accounting. Based on these duties, you will receive advice and assistance from your Buyers' Agent in selecting the best property and determining an offering price.
Who pays the Buyers' Agent commission?
That depends. Surveys show in most instances Buyer's Agents are paid like seller's subagents; that is, Buyers' Agents generally receive a share of the sales commission negotiated in the sellers' listing agreement. Many listing agreements between the seller and the seller's agent indicate whether the commission will be split between the seller's agent and a buyer's agent. That's because most sellers are prepared to pay a commission simply to get their home sold. They aren't concerned whether it's a Buyer's Agent or a subagent that shares the commission. Remember, the question you really need to ask yourself is: "Can I afford to buy a home without a Buyer's Agent?" For most home buyers today, the answer is "NO!"
Why you should use an Accredited Buyers' Representative (ABR)?
Why should you look for the ABR designation before engaging a licensed real estate agent to work on your behalf? These three letters after a REALTOR's name tell you that you will be working with a Buyers' Agent who is committed to your best interests. The ABR designation is awarded by the Real Estate Buyer's Agent Council (REBAC) to those REALTORS who have met the specific educational and experiential criteria needed to provide the high level quality service required by the Council.