We no longer live in a time where the only way a buyer could get her eyes on a listing would be to go through an agent. Then one day, the NAR had the bright idea of giving all of its rights to the MLS and access to the information away for free. Next was the rise of Zillow and many other free real estate websites.

Additionally, as Google becomes more and more accessible all the information you need is right at your fingertips. The process, lenders, title companies...so why would you need a realtor?

The first obvious answer to that is accessed. A buyer cannot access a listing without a licensed agent.

Well, couldn't you go directly to the listing agent? Sure...if you plan to try to negotiate with a professional salesman and realtor without any guidance or real-world knowledge of contracts, obligations, contingencies, and the like. Even if you're a retired agent yourself, the world of real estate changes so fast, you probably have very outdated ideas of how things work.

That brings me to my next point and what is probably the most important service any realtor provides.

That is knowledge and expertise. An agent doesn't just open doors. We make offers on your behalf. We negotiate on your behalf. We ensure you stay within the bounds of the contract and don't get into trouble.

Agents coordinate the process and ensure you are not getting yourself in a bind. we have all the contacts to ensure a smooth escrow.

We have the local market knowledge and the ability to access legal records that are otherwise very hard to obtain or even illegal for anyone other than them.

So how much is it going to cost you to access a professional's services?

I mean...that is just the tip of the iceberg in a nice summary but agents - especially for bad-asses like me.

Using a Buyer’s agent is usually free for the Buyer. The Agent that represents the Buyer is typically paid their commission by the Seller’s Agent, not the Seller. Many buyers mistakenly believe that if a Seller does not pay a Buyer Agent’s commission, that they will reduce the price of the home in an amount equivalent to the Buyer Agent’s fee. This is not true. Once a seller signs a listing agreement with a Seller’s Agent, they have contractually agreed to the total amount of commission that will be paid once the house is Sold regardless of how many agents are involved.

The total commission is the same for the Seller regardless of whether there is a Buyer’s agent or not. Therefore, if a buyer purchases a property without the use of a Buyer’s agent, the Listing Agent is entitled to keep the commission that would have been paid to the Buyer’s agent.

Despite being paid both commissions, that Listing Agent is legally obligated to ensure that the transaction is facilitated in the best interests of the Seller, not the Buyer.

For this reason, it is not only beneficial to have a Buyer’s agent on your side, it can also be detrimental if you enter into a transaction without representation.

If you're thinking of buying a home you should check out this video I did a while back about the buying process. Just click here or down there.

Thanks so much for watching today's video. I'll see you next time.