Penny-wise and Pound-wise: Why People Use a Buyer’s Agent

          A mega-proportion of serious Big Rapids and Mecosta County house hunters ultimately decide it makes the most sense to team up with a real estate professional to get the job done.   Big Rapids and Mecosta County buyers may begin the process of finding and buying their next home on their own, checking through the online listings or driving target neighborhoods to check out the “For Sale” signs — but the NAR® reports that 9 out of 10 of U.S. buyers will eventually use a real estate agent in their search process.

          The most obvious motivation for that is because the buyer’s agent’s fee is paid from the seller’s proceeds.   That alone could explain a 90% level of popularity.   When you can benefit from a professional’s services at no cost to yourself, Big Rapids and Mecosta County house hunters would have to think long and hard to come up with what the downside could possibly be.   To run down the arguments that could explain how 10% might decide to pass up the buyer’s agent service, I looked for the most common arguments against the grain.

          Here are the Top Four, presented in no particular order.   (Since I definitely do have a dog in this fight, I’ve also included some counterarguments):

1. Distrust.   Something for nothing?   A free lunch?   Common sense teaches the same lesson, always and forever: THERE’S NO SUCH THING AS A FREE LUNCH! (Counter: the service is not free: the seller pays).

2. Independent Spirit.   Some people know that they work and think better when they take sole responsibility.   They may have been misled by “experts” too many times — may regret not relying upon their own instincts.   After all, Americans are mavericks by nature: they are at their best using their own native ingenuity to solve problems.   (Counter: a substantial portion of the process of purchasing a home requires mastering technical legal and timing requirements.   Although a buyer can take the time to learn about all of them, since their buyer’s agent has already handled them successfully many times, it’s wasted effort. IOW, this is a wheel that doesn’t need to be reinvented).

3. Commitment.   If asked to okay an agreement that spells out the ground rules for working with a buyer’s agent, it’s as if a commitment is being forced prematurely.   After all, who knows for certain that the right house at the right price is even out there?   It just feels like putting the cart before the horse.   (Counter: this is never a commitment to buy — just an agreement for how the search and commission will be handled if a suitable home is found and purchased.   The buyer can make sure the arrangement can be severed without penalty if the service is not satisfactory).

4. Motivation.   Since a buyer’s agent will profit from any sale — they’ll try to sell me anything.   (Counter: Every buyer’s agent is legally and ethically duty-bound to represent their client’s interests — plus, since their entire career is utterly dependent on their reputation, their interests align).

          Whenever I represent any buyer, my motivation is 100% that of helping them reach their desired outcome.   Reaching that goal — finding the right local home, then negotiating and closing at the right price — is the way I keep the phone ringing.   See for yourself by giving me a call!

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Terry Reeves

Terry Reeves

Real Estate Professional
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