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by codegeek 3331 days ago
In the US, a buyer's agent is worth it. Here is why:

1. You, the buyer are not paying anything. Sure the seller needs to come up with the 3% for your agent and 3% for their own agent which could be expensive for sellers.

2. A good agent knows the local market/area well. They can assess your needs/prefernces and suggest properties that are worth your time. My agent was awesome and every property he showed us, we loved. He knew what we wanted exactly. That helps. Otherwise, you are just running around looking at houses you don't want.

3. A good agent can take care of logistics of viewing a home. They have access to homes, lockboxes etc and most will even drive you around in their own car (saving you time and hassle of driving yourself). Again, this may not mean much when you see 1 or 2 homes but when you start seeing 4-5 homes a week, it adds up quickly.

4. A good agent is well connected with other professionals in the home buying/selling process. They can recommend that home inspector you really need, or the title agent or even a mortgage lender. If you don't have an agent, you need to find all these people on your own and you will HAVE to when you close a deal.

5. Finally, when you actually select and ready to close,l there are tons of paperwork that need to be prepared and signed. You may use a a lawyer but a good agent can even get that sorted for you. My agent was so good that he literally got everything ready for us and I just had to show up at his office to sign like 100 pages of documents.

So yes, they can be worth it if they are good. Otherwise, they are just middlemen. You need to find the good ones.

4 comments

Your point 1. doesn't make sense. If the buyer has to pay 6% in commissions, you the seller are paying for it. In other words, if that 6% wasn't there, you could make an offer 6% lower and still keep the seller just as happy.
correct but it is not just about the commission as I explained in my other points. Good Agents have a value. How much is of course worth a debate.
really only 3% lower
One nitpick: The Buyer Pays.

Even though the contract states that the seller is the one responsible for RE commissions, you have a transaction where one party (the Buyer) is bringing money in, and everyone else is taking money out. Ultimately, the Buyer (as the single source of funding) is the One Who Pays.

The only trick is that, by allocating the fees to the Seller, the buyer has an opportunity to finance the fees as a part of the transaction (and thus also pay interest to the bank), so the Buyer gets to pay twice :)

I agree with all of this. I have very little patience or interest in the 'red tape' aspects of home-buying (and not a lot of practical home ownership knowledge), so having an agent who really knew what she was doing made things a lot easier for me, so much so that I used her when I bought my first house, then again a few years later when I sold that and got a new one.
The problem with 4 is you can't actually trust the professionals they recommend to you. For example You never want to use the inspector your agent recommends. (They won't want to blow a sale and lose the relationship with the agent).