Property buyers are naturally motivated to maximize their investment and get the best possible exchange in real estate transactions. But for first-time buyers, the intricacies of closing a deal may not be as straightforward. Without proper guidance and representation, they may inadvertently overlook crucial details, miss valuable opportunities or even overpay for a property.
This is why they mostly rely on an agent when purchasing. However, they should know that representation by a buyer’s agent differs from representation by a listing agent.
They have conflicting interests
A listing agent represents the seller and is lawfully required to act in the seller’s best interests. On the other hand, a buyer’s agent represents the buyer and is legally obligated to act in the purchaser’s best interests. If a person acts as both, it can create a conflict of interest, as the agent may be torn between their loyalty to the seller and their duty to the buyer. By having their own representation, buyers can ensure that their agent is solely looking for their interests.
They aim for different goals
The goals of a listing agent and a buyer’s agent often conflict. While a listing agent strives to sell the property for the highest value, a buyer’s agent aims to find the best property for the buyer at the best price. When a listing agent is representing both the seller and the buyer, they may prioritize the seller’s goals over the buyer’s, which can lead to the buyer overpaying for the property or missing key details that could have saved them money or avoiding potential issues.
If you are hoping for better negotiation
A buyer’s agent can provide better negotiation skills and strategies to help the buyer get the best possible deal. They can help the buyer navigate the offer and negotiation process, guide the buyer on structuring the offer, and help them avoid common pitfalls that could cost them money or lead to a failed transaction.
He or she may also have access to more properties and market information than a listing agent. They can provide the buyer with more comprehensive information about the local market, including current trends, pricing and other factors impacting the buyer’s decision.
Why some buyers choose not to have their own representation?
There are a few reasons why someone might choose not to have their own representation in a real estate transaction. One reason is that they may feel that they have a good relationship with the listing agent and trust their advice and guidance throughout the process.
Additionally, some buyers may not want to pay the extra costs associated with having their own representation, such as the commission fee for a buyer’s agent.
Some buyers may feel that they have a good understanding of the real estate market and the process itself, and therefore, they may not see the value in having their own representation.
However, buyers should be aware that having their own representation can provide them with a level of protection they might not otherwise have. A buyer’s agent can provide valuable insights and negotiating skills to help buyers make informed decisions and secure a better deal.
