Do you really need a buyer's agent?

It seems like there are a few people who are buying new condos "naked" (without an agent to represent them) direct from the project's salespeople.  Many people do this successfully -- especially agents themselves who are investing in property or professional real estate investors.

For most people however, using a buyer's agent makes a lot of sense.  Full disclosure: I am a full time Realtor so obviously, I'm a big fan of people using agents :-) 

That said, there are a number of good reasons to use a buyer's agent; here are some of them:

• First and foremost, it doesn't cost you anything.  The prices you pay at the sales center are the same if you are buying a place with or without agent representation.  Many people think that they can get a better price without an agent -- this is almost never the case since most sellers want to create a win-win relationship with the thousands of Realtors and their clients.

• Second, having an independent buyer's agent protects you from being pressured into any one particular condominium project.  Remember, the sales center staff are employed by that project's developer and are compensated for selling through that project's inventory.  Your buyer's agent, on the other hand, gets paid regardless of which development you buy so advice and analysis of comparables and other buildings will be much more objective.

• Thirdly, a buyer's agent can do a lot of the heavy analytical work before you make your decision.  Buyer's agents answer questions like what's a fair price per square foot, what are the comparables in the market now, what new listings are on the horizon, is this a building all the agents are talking about as investments for themselves, how would this specific unit and layout appeal to future buyers, etc.

• Lastly, a buyer's agent is also a project manager.  When it comes time to iron out the inevitable wrinkles with the upgrades, managing the closing process, or negotiating for incentives, your agent can be a real life saver -- especially since most buyers have day jobs and don't have time for chasing down the details ;-)

These are some of the reasons a buyer's agent can help you make the right decision and manage the entire home buying process.  Here's a post on what to look for in an agent if you haven't picked your representative yet.

-Wendy

Technorati Tags: seattle condos, realtor, buyer's agent, real estate agent, seattle realtors, seattle property investments, seattle condominiums 

Comments

[Suzanne T.]

What is your opinion about the value of using exclusive buyer's such as those described on the National Association of Exclusive Buyer's Agents (NAEBA) website?

[Wendy]

Thanks Suzanne. I'd say what's most important is that your Realtor has integrity. In my opinion, exclusively working with buyers doesn't necessarily guarantee optimal buyer representation.

One thing is for sure though, I think Realtors who consider doing a dual representation on a transaction (representing both the buyer and seller of a specific property at the same time) is frought with risk.

Wendy

[anonymous]

Have you heard of any other Westlake 2200 owner inspections that had numerous finish detail problems? I just had my inspection and the quality of the finish work and completeness was very disapointing. They would not have this as a showroom model it would turn people away in my opinion.
Thanks.

[tom]

how were they about fixing the problems you found?

[Wendy]

No, I've not. Make sure that your realtor follows up on the requested repairs. Most developers will accomodate reasonable requests.

[anonymous]

I will let you know how it goes with Vulcan. If anyone has had similar experiences with their inspection, I'd like to hear what happened. I hope it is not a trend.

[J]

We had a bunch of stuff on our 2200 Westlake walk-thru that needed attention. Turner and Vulcan worked to resolve all of the punch list items. We moved in before everything was checked off, so we filled out a warranty request form, submitted it to CWD, and CWD is working to finish up the details. No problems or complaints - Vulcan, Turner, and CWD have all been great.

[Boston Condo Guy]

First off, great post. Secondly, the comments have raised another addition to the mix in that Buyer's Agents can assist in facilitating an inspection, and any issues generated from an inspection - oftentimes, with new construction, assumptions are made that an inspection is not necessary, which is not the case.

[anon]

First, great blog! Great info and forum.
As far as the buyers agent question, my experience is that yes, they can certainly be a help - esp if you are new to buying real estate. But, you must remember something about agency - because the agent is being paid by the seller they ultimately WORK for the seller. Their job is ultimately to sell you something (either as quickly as possible or for as much as possible) that's how they get paid. That said, an agent can bring value to the transaction, but if you have some experience and confidence you can certainly do it yourself. I have bought and sold several properties and have never used a sellers agent.