Welcome Back! If you missed Part 1 of “Do I really need a buyer’s agent when purchasing a home?” you can find it HERE. To recap, the first three reasons were:
- A Buyer’s Agent represents YOU and YOUR best interests
- A Buyer’s Agent knows how to make the best offer and negotiate when necessary
- A Buyer’s Agent has connections to resources you will need during your purchase
Now 3 more Reasons to Use a Buyer's Agent when Buying a Home
#4 A Buyer's Agent may know of "off market" or "coming soon" homes not available in the MLS
The Multiple Listing Service (MLS) is a database established by cooperating real estate brokers to provide data and compensation information about properties for sale. Rules vary, but in my MLS (MRED) we have a private listing network. According to MRED, the PLN is “a database within connectMLS that’s separate from the Standard Listing Network (SLN). You can place “minidrafts” of property information in the PLN, allowing you to enter selected listings in a way that restricts the information shared to just other brokers BEFORE exposing the property to the public.”
Basically, the public cannot see these listings without the help of an agent. Supposed you are looking in a specific neighborhood. Your agent might be able to see upcoming listings before they go live to the public. This can give you as the buyer an edge over someone not working with an agent.
Even without a PLN, agents often network with each other. There are so many ways for agents to hear about properties coming to the market before the go live on the MLS. Using a buyer’s agent gives you access to the insider’s network of agents.
#5 A Buyer's Agent knows the proper procedures to follow throughout the transaction
As stated before, there are a lot of moving parts to a transaction. Don’t you want one person whose only objective is to get you across the finish line and into the home of your dreams?
Are deadlines being met? Is your mortgage on track? Your agent will be keeping track of all the little details to make sure nothing falls through the crack. If you use the seller’s agent, how do you know they aren’t doing things that might benefit the seller over you?
#6 Currently, unless you buy a home FSBO (For Sale By Owner) or Off Market, You don't pay your agent directly
As mentioned in Reason #1, there are several lawsuits in place that may change how real estate commissions are paid, but at the moment, this is how it’s done most often in Illinois.
When a seller lists a home, they sign a listing agreement that includes a commission (usually a percentage of the sales price). The seller also agrees to offer a portion of that commission to the co-op agent who represents the buyer. The money does not come directly from the buyer. However, some sellers are now deciding to not pay the co-op agent a portion or even reduce the typical compensation. In these situations, it’s the same as if the buyer purchases a FSBO and the owner will not compensate the buyer’s agent. t is now up to the buyers to agree to pay the agent for their services.
Hopefully, I’ve convinced you of the benefits of having your own representation and you would decide to pay your agent’s commission in one of those situations! Either way, you should sign a buyer representation agreement and be clear of the terms.
Many in the industry already predict that in the near future, the sellers will pay their agent and the buyers will pay their agent. Why not take advantage of the situation now in which most sellers compensate the buyer’s agent?
Let's Review the 6 reasons to use a Buyer's Agent
- A Buyer’s Agent represents YOU and YOUR best interests
- A Buyer’s Agent knows how to make the best offer and negotiate when necessary
- A Buyer’s Agent has connections to resources you will need during your purchase
- A Buyer’s Agent may know of “off market” or “coming soon” homes not available in the MLS
- A Buyer’s Agent knows the proper procedures to follow throughout the transaction
- Currently, unless you buy a home FSBO (For Sale By Owner) or Off Market, You don’t pay your Buyer’s Agent directly
If these reasons don’t convince you, then reach out directly to me and let’s explore the reasons for your reluctance to use a Buyer’s Agent. Buying a home may be your biggest purchase in life and you need the right representation supporting you!