Here are some frequently asked questions about buyer representation, designed to address common concerns buyers may have about working with a real estate agent:
What is buyer representation? Buyer representation is when a real estate agent works exclusively on behalf of the homebuyer, representing their interests throughout the transaction. The agent helps the buyer find properties, negotiate offers, and guide them through the legal and financial aspects of the home-buying process.
Do I need a buyer’s agent to purchase a home? While you can buy a home without a buyer’s agent, having one is highly recommended. A buyer’s agent provides expertise in the local market, helps with negotiations, and ensures that your best interests are represented throughout the process. They can save you time, money, and reduce stress by handling the complexities of the transaction.
Who pays the buyer’s agent’s commission? In most cases, the seller pays both the buyer’s and seller’s agent commissions as part of the transaction. This is typically included in the seller’s closing costs, so buyers don’t directly pay their agent. It's always a good idea to confirm the specific arrangement in your area.
What’s the difference between a buyer’s agent and a seller’s agent? A buyer’s agent works for the buyer, representing their interests in the home-buying process. A seller’s agent, on the other hand, represents the seller and aims to get the best price and terms for them. A buyer’s agent will advocate on your behalf, ensuring you get the best deal and necessary protections in place.
How do I know if a buyer’s agent is right for me? It’s important to choose a buyer’s agent who is knowledgeable about the local market, experienced, and someone you feel comfortable working with. Look for an agent with a strong track record, positive reviews, and who takes the time to understand your needs and priorities.
Will a buyer’s agent only show me homes within my budget? Yes. A good buyer’s agent will respect your budget and only show you homes that meet your financial parameters. They may also offer insights into properties that could be a good value or suggest alternatives that you might not have considered.
Can a buyer’s agent help me with new construction or pre-sale homes? Absolutely! Buyer’s agents can help you navigate the purchase of new construction or pre-sale homes, often securing better terms, upgrades, or incentives that aren’t always obvious to buyers. They’ll also help you understand contracts and timelines unique to new developments.
How does a buyer’s agent help during negotiations? A buyer’s agent uses their knowledge of the market and property conditions to help you craft a competitive offer. They will negotiate with the seller’s agent to get you the best possible price and terms, whether that’s in the form of price reductions, closing cost contributions, or repairs after an inspection.
What if I find a home on my own? Can my buyer’s agent still help me? Yes, if you find a property through online searches or driving by, your buyer’s agent can still assist you in the buying process. They’ll help you gather more information, arrange showings, and guide you through making an offer and closing.
What kind of contract will I sign with a buyer’s agent? While no contract is required to work with a Buyers Agent,
(not yet anyways), typically, you’ll sign a Buyer Representation Agreement that outlines the terms of your working relationship, such as the duration of the agreement and the agent’s duties. This agreement ensures that your agent is committed to working in your best interest.
Can I switch agents if I’m not satisfied with my buyer’s agent? Yes you can, If you’re unhappy with your agent’s services, communicate your concerns. In many cases, the agent will work to resolve the issue, but if things don’t improve, you may be able to terminate the agreement or switch agents, depending on the contract.
Does a buyer’s agent only help with finding properties? No, a buyer’s agent helps with much more than just finding homes. They provide guidance through the entire home-buying process, from property searches to negotiating offers, handling paperwork, coordinating inspections, and managing the closing process.
Can a buyer’s agent help me understand the current market conditions? Yes! A buyer’s agent has in-depth knowledge of the local market and can provide insights into current trends, pricing, and demand. They can explain how
market conditions might affect your buying strategy and help you time your purchase for the best outcome.
What happens if I buy a home without using a buyer’s agent? If you don’t have a buyer’s agent, you’ll need to navigate the home-buying process on your own, including negotiations, understanding contracts, and coordinating all the steps required to close the deal. You may end up overpaying or missing important details that a professional agent would have caught.
Is there a conflict of interest if a buyer’s agent is also the seller’s agent on the same property? In most areas of BC, a Sellers agent cannot represent a buyer on the same property. In situations where the same agent represents both the buyer and seller (dual agency), the agent must be neutral and cannot fully advocate for either side. Some buyers prefer to avoid dual agency to ensure their interests are fully represented by their agent. Be sure to discuss this with your agent if it’s a concern.