It is an exciting time to buy real estate but be aware you don’t always make money when you buy your home. The costs associated with owning real estate can quickly add up. There are transfer taxes, closing costs for a lawyer/notary, property taxes, city utility fees, replacement insurance, mortgage insurance, mortgage interest fees and finally real estate agent fees. Picking the right house can be crucial to better your financial position when owning real estate and picking an agent can help you pick the right home. In this post I will talk about the passive and active things a Buyer agent can do to help Buyers gain financial freedom through real estate.
Typically Buyers don’t pick buyer agents. The majority of the time the Buyer agent tries to “pick” a client and this happens either through an online inquiry, phone inquiry, open house or referral by a friend or colleague. When you go looking for an agent you quickly realize that there are 100’s of agents and we all say the same thing. Background information on agents are usually missing or minimal so it is normal for buyers to wind up working with an agent they don’t know much about.
The value the buyer agent brings to a Buyer, generally speaking, is as follows:
- Buyer agents make it easy for Buyers to look at multiple homes and keep their identity private rather than having to contact multiple sellers or seller agents. This means the agent needs to be available even on short notice.
- The Buyer agent makes it easy to write an offer on a property. Generally a custom legally binding contract can be created within an hour of looking at a property, any day of the week. This service is important due to the unique nature of real estate – you want to secure the property that you like sooner rather than later because another property like it might not be readily available.
- They give advice and have a fiduciary duty regarding contractual subjects and conditions on any one particular property. In this respect Buyer agents give Buyers assurance backed up with actual liability insurance usually up to $3 million dollars.
- The buyer agent can connect the Buyer with reputable sub contractors, mortgage specialists, and home inspectors to help ensure that the home buying process goes as smoothly as possible with minimal stress.
- They give advice about general market conditions as well as specific advice down to a single segment and single property, ideally speaking, helping the buyer ultimately find the right property for them so that the buyer can have the best chance of building wealth.
The first two points are probably the most important practical values a buyer agent can bring to the table and these two points also require the least amount of knowledge/experience. Just by doing these two points, a lot of Buyers appreciate the services of their agent and just these two points can mean the difference between securing a great property or getting ‘stuck’ with a not so great property or renting. These are the passive things an agent can help a Buyer with.
The last three points generally require more knowledge and experience to do well. The agent becomes more of an advisor than a passive participant. These points require more of an active approach where the agent tries to actively ask questions that can help them better understand the needs of a particular Buyer. Outside of being available, typically the biggest difference between one agent and another one has to do with these last three points.
Picking the right agent can save you a lot of time and be the difference between finding a property you want to hold on to and build wealth or buying a property that could lead to financial trouble.
Are you looking to buy a property in and around Kamloops? If you would like some help feel free to contact me when you are ready.
Call or text: 250-320-0154