Many people ask if working with a buyer agent when buying a home is free. It's very important to understand how buyer agency works and the benefits of working with a real estate agent that specializes in buyers.
Most larger real estate brokerages in Ohio charge a processing fee ranging from $150-$250. This fee is included in your closing costs and it covers all "handling and storing of paperwork for five years." It costs pennies to store documents on a computer. Working with a RE/MAX agent in Ohio when buying a home, automatically saves you this 'administrative fee.' Our team at RE/MAX chose not to hand down this cost to you. You instantly save hundreds of dollars when you work with us. We're proud of this and think it's the only fair practice.
When buying a home in Ohio through RE/MAX and most brokers, there is no commission paid by you for using a buyer agent. At RE/MAX, we believe buyers and sellers should each have their own representation during the home buying and selling process. Each side should have an agent to handle the paperwork, details and coordination of actions from beginning to close. Some real estate companies will make you sign a contract to work with them and some will even represent both parties at the same time. We don't bind our buyers and only represent either the buyer or seller, never both at the same time. In other words, we can work with you while selling your home but not the buyer buying your home and the other way around.
Many people think that they have to pay a commission to the buyer agent. Only the seller pays the commission when their home has sold. The commission they pay covers both buyer and seller agents. The seller's agent determines how much the buyer agent will receive. It used to be standard for buyer agents to receive 50% of the commission as they're doing half of the work in the transaction. In today's real estate market, many selling agents keep more of the commission and a 60/40 split is common. It's important for you to understand and know this if you plan to sell your home using an agent. You may want to insist that they give at least 50% if not more to the buyer agent as incentive and encouragement for them to show your home and help sell it. Get it in writing on the listing agreement. My agents and I believe that a 50/50 split is fair and equitable and in the best interest of our sellers. Unfortunately, most don't realize how the commission is split or paid.
Working with a buyer agent is a crucial part of buying a home. An experienced Realtor will:
View it as having your own attorney in court. You wouldn't want the other side's representation working with you or knowing your personal details, thoughts or plans. Anything you mention to the seller's agent can hinder your final cost, negotiations and ultimate outcome.
Feel free to contact us with any questions or to discuss the process further. Whether you've been actively looking for a home or are just starting, a good buyer agent will be able to fill you in on tips and ways to minimize your stress, costs and time. Email, text or call. Our Cleveland RE/MAX team are always available and happy to help.
Most larger real estate brokerages in Ohio charge a processing fee ranging from $150-$250. This fee is included in your closing costs and it covers all "handling and storing of paperwork for five years." It costs pennies to store documents on a computer. Working with a RE/MAX agent in Ohio when buying a home, automatically saves you this 'administrative fee.' Our team at RE/MAX chose not to hand down this cost to you. You instantly save hundreds of dollars when you work with us. We're proud of this and think it's the only fair practice.
When buying a home in Ohio through RE/MAX and most brokers, there is no commission paid by you for using a buyer agent. At RE/MAX, we believe buyers and sellers should each have their own representation during the home buying and selling process. Each side should have an agent to handle the paperwork, details and coordination of actions from beginning to close. Some real estate companies will make you sign a contract to work with them and some will even represent both parties at the same time. We don't bind our buyers and only represent either the buyer or seller, never both at the same time. In other words, we can work with you while selling your home but not the buyer buying your home and the other way around.
Many people think that they have to pay a commission to the buyer agent. Only the seller pays the commission when their home has sold. The commission they pay covers both buyer and seller agents. The seller's agent determines how much the buyer agent will receive. It used to be standard for buyer agents to receive 50% of the commission as they're doing half of the work in the transaction. In today's real estate market, many selling agents keep more of the commission and a 60/40 split is common. It's important for you to understand and know this if you plan to sell your home using an agent. You may want to insist that they give at least 50% if not more to the buyer agent as incentive and encouragement for them to show your home and help sell it. Get it in writing on the listing agreement. My agents and I believe that a 50/50 split is fair and equitable and in the best interest of our sellers. Unfortunately, most don't realize how the commission is split or paid.
Working with a buyer agent is a crucial part of buying a home. An experienced Realtor will:
- Best match you and your needs to properties on the market.
- Identify new homes coming to the market that aren't listed yet.
- Know the history of a property and its true value.
- Negotiate on your behalf to get you the best price and terms.
- Explain and guide you through all paperwork, steps and laws.
- Deal with the seller's agent and handle potential negotiation issues.
- Walk you through the home inspection process, escrow and close.
- Give you experienced advice on lending, insurance, taxes and title.
- Refer you to top, reputable industry experts in the area.
- Be your advocate when it comes to repairs and contract changes.
- Handle all follow-up on your behalf making sure all steps are completed.
- Make life easier for you during your move by coordinating the close.
View it as having your own attorney in court. You wouldn't want the other side's representation working with you or knowing your personal details, thoughts or plans. Anything you mention to the seller's agent can hinder your final cost, negotiations and ultimate outcome.
Feel free to contact us with any questions or to discuss the process further. Whether you've been actively looking for a home or are just starting, a good buyer agent will be able to fill you in on tips and ways to minimize your stress, costs and time. Email, text or call. Our Cleveland RE/MAX team are always available and happy to help.
posted by Cleveland Real Estate at
4/10/2008
2 Comments:
You make some excellent points; one should seek out qualified representation when purchasing. A buyer can be at a disadvantage, inasmuch as the listing agent (seller's agent) is much more versed in these matters.
It is kind of like thinking that medical services are free if you have insurance. That is clearly not true. You pay for the service through paying for insurance.
So in our view buyer agent are not free. Buyers (and sellers) have always paid for the service of real estate agents. Now they are actually getting someone who should be looking out for them!
Regards,
Jon Boyd
Exclusive Buyer's Broker
The Home Buyer's Agent of Ann Arbor, Inc.
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