Unsurprisingly this question comes up frequently – after all, isn’t just easier to contact the listing agent and deal directly with them?
The answer actually lies within California’s Agency Laws which govern who has a fiduciary responsibility for the parties in a transaction.
Or to put it another way, if you were suing another person, would you hire their lawyer to represent you? Of course not – yet with real estate, state law allows the same principal (the real estate broker) to represent both parties to a real estate sales transaction.
So here are some points to consider before calling the listing agent to view a home:
A Buyer’s Agent is YOUR Fiduciary
A buyer’s agent is your fiduciary and advocate. Unlike a regular real estate agent who owes a duty to the seller, a buyer’s agent is your exclusive representative in a real estate transaction and will maintain confidentiality and protect your interests.
Remember – if you contact a listing agent and negotiate directly with that agent, anything you say about your situation or intentions will be disclosed to the seller – your confidentiality will be violated and place you at a negotiating disadvantage. You want an buyer’s representative to protect and represent your interests exclusively without divided loyalty.
Protect You from Overpaying
Before making an offer, it’s important to understand the true market value of the property you want to buy. By performing a comprehensive market analysis before writing an offer, a buyer’s agent will separate fact, which is the market value of the home, from fiction, which is what the seller thinks the home is worth, and guide you to a competitive offer that reduces the risk of overpaying and giving up precious equity.
Search Any Home, Anywhere
A buyer’s agent has the tools and ability to search for your new home using a variety of options most real estate agents don’t know about or don’t use – properties owned by banks, homes not listed on MLS, foreclosures, and even For Sale By Owner.
While other real estate agents just search the MLS and fight over limited listings, we are creatively searching off market properties hidden under the radar – less competition equals more options and a better price for you!
You Need a Professional Negotiator
A buyer’s agent has the training and experience to negotiate on your behalf and make sure your offer is competitive, but while still protecting your interests, confidentiality and helping to mitigate risk. Your buyer’s agent will review not only the offer price, but options for contingencies in the contract, and will guide the transaction and manage communications with the sellers from offer through close to ensure a smooth transaction, all while ensuring your interests are protected.
How Much Do I Need to Pay?
In almost all normal property transactions, the buyer’s agent’s compensation is paid from the seller’s proceeds. The seller has a contract to pay their real estate broker a commission, and that broker will pay the buyer’s agent from those proceeds. You may have read advice on the Internet that talks about not using a buyer’s agent and saving the seller money in exchange for a lower price – this is actually false because the seller and their broker already have a contract that fixes the sales commission, and it’s not subject to further negotiation no matter what you suggest in your offer. If you are not represented, the seller’s broker will keep the entire commission for themselves, along with placing you at a negotiating, disclosure and confidentiality disadvantage during the transaction.
So, if a buyer’s agent doesn’t cost you anything extra out of pocket, why not be properly represented in your real estate transaction, and have a professional review your needs and wants, discuss financing options, and find your new home?
Most home buyers have spent time on Zillow, Realtor.com or similar sites to search for a new home – it seems very easy, right?
But those companies are not there to help you find a new home, they are there to collect your name, email and phone number and sell it to dozens, or even hundreds of real estate agents, who will then start calling you to talk about your home search.
Worse, some sites will recycle stale listings that are already sold, just to keep readers interested and willing to submit their information for access to the home.
My search portal is different. It’s a direct connection to live MLS data, updated throughout the day, and includes only homes that are actually for sale.
No one will call you or bother you, although I may send you a quick email just to make sure the site is working OK for you, and answer any questions – but beyond that, you can search for homes anywhere in Southern California at your pace, save favorites, setup automated search alerts, and you can just let me know when you find a home you want to see – and I will take care of the rest.
Ready to get started? The search portal is below, and you can enable advanced search criteria to check for every possible option in the MLS to be very specific about the home you’re looking for. Just click the filters button to view more search criteria.
