How Real Estate Agents Help Home Buyers

Philadelphia Real Estate Podcast With Jack Barry

Having a buyer’s agent on your side when looking at new construction homes is crucial to your ability to negotiate. Here are three reasons why.

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Recently, a client asked us why he would need a buyer agent with him while looking at a new construction property. He felt that he could get a better deal and be in a better negotiating position if he worked with the seller’s agent directly. In this case, he failed to realize a few important things:

1. The listing agent has a contract with the seller. A buyer has no negotiating leverage when dealing with the listing agent because that agent will work to make sure that they maintain their percentage of the sale price. This is called dual agency.
2. A buyer’s agent does not cost you money.
3. The seller’s agent has no fiduciary responsibility to the buyer. This leaves your financial position as a buyer open to the seller. Sometimes price is not the only avenue for a deal; sometimes it’s the closing dates or financing. In any case, none of those issues are kept confidential in a dual agency situation.

There is no reason not to hire a buyer’s agent to represent you when buying a home. A buyer’s agent costs you nothing and is the best way to protect your financial interests. This is why you should be sure to find an agent before you even begin looking at properties. A lot of new construction agents are not Realtors; they have what is called a developer’s license, so when you go in to sign the book, you’re actually signing up with them to represent you. Be very careful about this!

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The listing agent has no fiduciary responsibility to you.

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If you need help finding a great agent or you have any other questions about buying or selling real estate in our area, give me a call or send me an email. I’d be happy to help you!