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Buyer Agent

Buyers should seek representation by a buyer's agent.   It makes buying a pleasure, it greatly reduces buyer's risk and may save the buyer a boat load of money.

The buyer's agent is the individual that represents buyers when they purchase a home. This agent negotiates with listing agents representing home-sellers to come to a final sale price agreed upon by both the buyers and the sellers. The buyer's agent is paid once a deal closes through a selling office commission determined by the sellers of the home.    The buyer is not charged for using a  buyer's agent. 

 

Of the buyers who purchased a property through a real-estate agent, just 60% had buyer representation, according to a November 2011 report by the National Association of Realtors. That's down from 62% in 2009 and 64% in 2006, before the housing bust.

Many experts say this is a bad move — worse, for example, than trying to sell a house without an agent. For one thing, in most cases, a buyer doesn't pay an agent; the buyer's agent splits the commission with the seller's agent, so the services are essentially free to the buyer. Also, a buyer's agent can usually access historical price data for home sales in the area, which means the agent can recommend a bidding strategy that targets comparable properties that sold for less, rather than the midrange. John Vogel, adjunct professor of real estate at the Tuck School of Business at Dartmouth College, calls going through this process alone "a mistake."

Many experts say this is a bad move — worse, for example, than trying to sell a house without an agent. For one thing, in most cases, a buyer doesn't pay an agent; the buyer's agent splits the commission with the seller's agent, so the services are essentially free to the buyer. Also, a buyer's agent can usually access historical price data for home sales in the area, which means the agent can recommend a bidding strategy that targets comparable properties that sold for less, rather than the midrange. John Vogel, adjunct professor of real estate at the Tuck School of Business at Dartmouth College, calls going through this process alone "a mistake."