Protecting Your Interests

You could shop for a home by checking newspaper ads, visiting open houses, driving through neighborhoods looking for sale signs and visiting new home developments. But you'd be at a serious disadvantage. That's because agents who are selling homes work for the seller and have agreed to protect the seller's interests. Even though they may claim to take a neutral stance, their first priority lies with the seller, not the buyer. For example, it's possible for two different buyers to purchase identical houses in a new development and pay different prices.

An agent who works for you will know the going rate for houses and will ensure you do not pay too much. An agent will also protect your interests. And finally, an agent can greatly reduce the time it takes to find homes that meet your wants and needs.

Real estate agents have access to services that can help you find the right home faster than you could do it on your own. One such service is the Multiple Listing Service, or MLS. The MLS contains every listing from all real estate companies. Your agent can use the MLS to quickly and easy search through a large database of properties to find the homes that best meet your needs. Any agent can show any property listed in the MLS.

Exclusive Agreements

While it may seem logical that having several real estate agents searching for a house for you will give you better service, in reality the opposite is true. Experience shows that you are better off working with one agent exclusively. Here's why.

Real estate agents work on commission only and do not receive salaries. So it's in their best interest to find a house that you want to buy. However, if an agent knows you are working with other agents as well, he or she may not be motivated to find you the right house because they know you may choose to buy a house from a different agent. However, when you work with only one agent, that agent knows they will be paid for the time and effort they expend on your behalf.

When you entering into an exclusive buyer agency agreement with an agent you hire a professional who will represent you and look out for your best interests. A good agent will give you all the information you need to buy a home. This includes disclosing information about the property and negotiating the best price and terms. And it doesn't cost anything to work with an agent when buying a home because the seller pays the real estate commission.