Maryland Buyer's Agent is a Must-Have
Did you know the buyer's agents work for free? Okay, I take that back. Not necessarily free but did you know the buyers don't have to pay a dime to enlist the help of their own representation? You might avoid using a buyer's agent because you think that's one more thing you have to pay for and buying a home with earnest money deposits, down payments, appraisals and inspections can certainly add up fast.
The last thing you want is to pay an agent where you can simply go to the listing agent of the home you want to buy. The problem with this situation is that you're entrusting the agent that selling the house to represent you during the transaction as well. That agent's primary goal is to sell that particular property, not necessarily work on behalf of the buyer. When the same agent facilitates the transaction on the same property for buyer and seller, it's called dual agency and this is a slippery slope practically doomed from the beginning.
Here's how this works; the homeowner decides to sell their property so they hire a listing agent with a brokerage for the area. The contract states that that agent will receive a commission for listing in marketing the property. The commission is technically split between the agent that brings the buyer and the agent that lists the house, typically around 6%. If the same agent that lists the property also sells the property to their own buyer, that agent receives the full commission. You can see why this is extremely attractive to listing agents, however, the benefit is not to the buyer but really to the seller and the listing agent only.
What a buyer has their own agent, that agent will receive half the commission of whichever home the buyer chooses, but the buyer's needs, interests, and finances are the top priority for that agent, not necessarily selling any one particular property.
Buyers agents can actually save their buyers thousands of dollars depending on the type of property, negotiations, and how to submit an offer. Naturally, if the listing agent writes of the offer, it's going to be skewed in favor of the seller rather than the buyer. When a buyer's agent writes up an offer for the buyer, it's generally in the buyer's best interest. Counteroffers can go back and forth until a mutual agreement occurs, but the initial offer is always in the best interest of the buyer rather than the seller.
How can a buyer's agent save a buyer money?
The best way to describe this is with a scenario that is quite common. Let's say that a property is on the market for $400,000. The buyer has already been preapproved for financing up to $450,000. The property has been on the market for some time so the buyer would like to offer $380,000. The listing agent nor the seller know that the buyer is actually approved for well over the asking price. The seller and the listing agent may assume that the buyer can only afford $380,000 and since the property has been on the market for some time, agree to the $380,000 price, $20,000 under the asking price. While this is just a general situation, similar occurrences happen all the time. Keeping your cards close, understanding negotiations, and having an agent is really working on your side, is the key to getting the terms you want and the price you want.
So, why wouldn't you use a buyer's agent?
We don't know either! So contact us below at any time to get started. You could interview our buyer's agents and find one that works in your budget, your neighborhood, and understands exactly what you're going for. Would love to help you find the perfect house in Maryland.