Do I need a Buyer's Agent?

Let's start with do you, as a home buyer, need an agent and I believe the answer is a resounding YES! Do you remember the list of things the listing agent does for their seller that I shared earlier? Who is doing all of that for the buyer?

You can call the listing agent, but you must remember that that agent DOES NOT work for you. The listing agent has the main goal of representing the best interest of the seller. For example, if you walk into a new construction model home does that on-sight agent work for you the buyer or for the corporate builder who pays their salary? Whose financial goals is the listing agent incentivized to protect? Yours or the seller/builder? Ok, so now you realize you need your own agent-to help you with your financial goals, to represent your best interest and to keep your private financial and family matters confidential.

So how do you pay for proper representation?
With the new NAR/ DOJ rules that we have been discussing, you will be required to sign a contract PRIOR to any service from a buyer's agent. In the past because I am working by referral with family and friends-or friends of friends, I, as a buyer's agent, have been willing to show a home (or two) and set up a search for you without a contract but the new rules no longer allow for that. Buyers will no longer have the flexibility in the market to ease into the real estate process. No longer will they be able to assume their agent and representation is getting paid and they will need to cross their fingers and toes that a seller concession can be negotiated on their dream house to cover the expense of having their own representation or pay them out of pocket which will obviously lower their overall budget. In the end I believe that the overall effect of this new rule change will be that many buyers hesitate entering the market and this will lead to less offers on listed homes-and less profit for sellers because there are fewer buyers. And unfortunately I believe many buyer's agents will leave the industry. Those of us agents who can articulate our value proposition and lean into our years of expertise and experience will have more buyers than ever to serve and supply and demand will rule again and the good agents will continue to earn their commissions.

Who wins with these changes- certainly not buyers, especially first time home buyers are being hit hard. And with fewer buyers in the market the seller will lose too-it is all connected and most sellers turn around and become buyers. There is one last question I want to try to answer for you-and this may be the most important of all of the insights I desired to share in this series of blogs-

Do real estate agents make too much money?
Did you know that the average real estate agent is typically female, in her second career and only makes an average of $43,000 a year? Real estate agents are entrepreneurs and the bulk of the industry is composed of millions of mom and pop start up companies, like mine, consisting of 1-20 people. Like many trades, no college degree is required and the real estate industry is one of the most regulated and litigated industries in the US. Lastly, the real estate agent works with the risk of never getting paid. I have shown hundreds of homes, driven thousands of miles, worked countless hours only to have a client decide to not buy or sell. It is the name of the game and because I love what I do and helping people I accept that risk. The media portrayal that the real estate agent is somehow akin to the mafia and making bank is not only fictitious, but offensive to those of us who work so hard to serve our community and friends and family in our sphere of influence. I was a school teacher in my prior career and this too can be a thankless job if I read the headlines. I refuse to allow the government or news media to define who I am as an agent and community servant and I thank each of you for your support, encouragement and trust! I love hearing from you when you need a plumber or landscaper-when you have property tax questions and especially when you call to introduce me to a family member or friend looking to buy or sell. Your referrals are precious to me and I will always take the utmost care of them!

Blessings to each of you and thank you for allowing me to share on this important topic! Want me to write about a topic you have questions on? Send me a note- I will happily research and deliver.  ​