Throughout time buyers of real estate have had an agent. Who and what that agent represents has changed throughout the years! In Oregon we have buyer agency and seller agency and dual agency. Every single person that contacts an agent should receive The Oregon State Agency Disclosure Pamphlet.
So one of my competitors who I have the utmost respect for has launched a new campaign and the real estate community is a buzz about it. They are calling it “3 Beats 6” this campaign is directed towards sellers, but at the end of the day the impact is on the buyer and the buyer’s agent. Understanding agency, who you represent and what your role in a transaction are becoming more important than ever before.
As we emerge from the cloud that has been called “this market.” Into what is becoming the “new normal” you will see a lot of changes in the way the real estate industry as a whole does business. Many are running scared from it!
As a buyer you should have a “buyer’s agent,” pure and simple! The listing agent represents the seller. They have a fiduciary responsibility to get the highest price and best terms possible for the seller. They are hired to market the home in the very best light and to bring in the best possible situation for the seller. Now, why would we think that this same agent would have the flexibility to represent the buyer?
As a buyer’s agent we want to find the very best property at the very best price and the very best terms. Kip makes a statement that makes me laugh in some ways but is so true in other ways.
The other 3ish% that the seller pays from the equity of the home goes to an agent who is working for the benefit of the buyer, and who will vigorously fight for the buyer. The buyer’s agent will negotiate your price down, ask for your shiny new refrigerator, and to really show their client that they are going to cut you off at the knees, they will ask you to pay the buyer’s closing costs.
He is right on here , my job as your buyer’s broker is that and so much more. Kip in my opinion is about 95% correct when he talks about the role of a buyer’s agent in general. Thank goodness I am not a “normal” buyer’s agent.
So, what does this mean to you the buyer? It means that there are seller’s out there that want to sell their home, and they don’t WANT to pay a buyer’s agent to bring the buyer. There are sellers out there that believe all a buyer’s agent does is open doors to homes for sale and act as a tour guide while buyers mooch off of them.
I am sure there are some buyer’s agents that is exactly what they do, they have not adapted to the age of real estate where we are no longer the keeper of the data as Kip said. Real Estate Professionals need to be more about being the educator, the pre-qualifier, the problem solver and so much more. As a buyer’s agent before a buyer goes into a home they should know exactly what the market is for the home they are looking at, how they plan to pay for the home. What loan product they are planning on using and more.
So do you as a buyer now have to pay for your own agent? Possibly, however, everything in real estate can be negotiated including the buyer side commission. So, don’t be surprised when you call me to be your agent that we discuss agency and how I get paid, the playing field is changing.