During a real estate transaction, there are always two sides - buyers and sellers. Since the 90s, we have had two agencies - buyer's agents and seller's agents. Each should work for their respective party. Check out the video for more info! Don't feel like watching, read all about it below:
Quite simply, a Buyer's Agent is a real estate agent that is working on behalf of the buyer. In every transaction, there is a buyer and a seller. The agent that represents that party has a fiduciary responsibility to their client. In other words, every Seller's Agent has a fiduciary responsibility to the SELLER to get them the most money possible with the best terms to close. Therefore, you want a Buyer's Agent to represent you and have your best interest at heart. At the time this is being written, we are in a seller's market. That means there are not enough homes available for buyers. Ultimately, for buyers, it may mean having to pay more than the house is on the market for and even more than the house appraises for when applying for the loan.
When working with Joe (or other good buyer's agents), a combination of things will occur. 1) We'll get to know exactly what you're looking for, where you're looking, and most importantly why. 2) With this information, we'll set you up on an MLS search so you get notified the minute something that meets your criteria hits the market. 3) We also will be looking at the new homes hitting the market and past homes on the market to see if any sound like a good fit. While you're at work or enjoying family time, we will be previewing properties both online and in person. We are actively shopping for you, not just with you. We are looking for your new home, not waiting for your text or call saying you saw one.
The offer process starts with your pre-approval. We literally can not submit an offer without a pre-approval unless you are paying 100% cash for the house. In the event you are paying cash, we will need a financial statement from your bank or retirement account showing you have the available funds to pay for the offer we are submitting. This brings us back to why you do not want to work with the listing agent on the home. Remember earlier, when we said the Listing Agent is working directly for the seller to get them the most money and best terms possible? Even if you're going to be paying more than the home is listed, you don't want to give away all your power by telling that listing agent how much money you have to spend, how badly you want this home, what you'd do to get this offer accepted, etc. That is music to the seller's ears and will cost you thousands of extra dollars. Instead, you can safely and confidently tell your Buyer's Agent your confidential information and have him/her work diligently for Y-O-U!!!