Navigating buyer agency agreements as a buyer

 

Big changes are on the horizon for buyers.  The settlement has happened and for the first time, you’ll need to evaluate the value your buyer agent brings to the table and decide how much you’re willing to pay for their services. This means you’ll be guaranteeing your agent’s payment in exchange for their expertise.

But how do you determine if they have the expertise you need? It’s crucial to interview potential agents before signing a buyer agent agreement.

Here’s my tried-and-true advice for prospective clients:

Most agents are nice people, but this is a service industry, and hiring the friendliest agent doesn’t always cut it. While it’s great to have a rapport with your agent, remember that you’re making a significant financial investment. Compatibility is important, but it shouldn’t be your top priority.

Finding Knowledgeable Agents: The Interview Process

  1. Interview at a House: Select three agents you’re interested in and arrange to view a vacant home that matches the era and price point of what you’re looking for. Using a vacant home means you’re not inconveniencing a seller. Have all three agents show you the same property and pay attention to what they say and do.
  2. Evaluate Their Insight: Look for an agent who discusses the pros and cons of the house, including details about the location and neighborhood. If an agent merely asks if you like the house, move on. Keep interviewing until you find someone who demonstrates knowledge about the homes and the neighborhoods you’re interested in.

Encourage your friends and family to shop around for buyer agents, just as they would for listing agents. Agents will be negotiating for the sellers to cover their buyer agent fees, just as they’ve been negotiating for decades for sellers to pay closing costs or complete repairs. Including this fee in the negotiation process isn’t a big deal, but it’s now up to buyers to determine that fee when signing a contract with a buyer agent.

If you are unsure if the agent is right for you, don’t get locked into a long-term buyer agency agreement. Give them a test drive.  Do a two-week agreement. You can always extend, but if you find that they aren’t advising you the way you want after seeing a few homes, find a new buyer agent.  Don’t be afraid to fire them because they are nice.  You are spending a lot of money on a home.  Get good representation.