What is a buyer's agent?
A buyer's agent is a Realtor who is under contract to work in the interest of the buyers. Without a buyer's contract, the Realtor is bound by law to represent the best interest of the seller of the property.
How do buyer's agents get paid?
Usually the homebuyer contributes little, if anything, to the buyer's agent earnings. The buyer's agent usually "cooperates" with the seller - this means that the commission paid by the selling homeowner to his agent is split between the listing and buying agents. I would guess that in 85% of home sales the buyers agent is paid totally by the seller.,
Can agents refuse to show low commission homes?
Most buyer's agents will show any home you ask to see. When a seller is offering an extremely low commission to buyer's agents, the buyer's agent should determine with a buyer up front if an additional charge or buyer's commission will be needed in order to fully compensate the agent. At that point the buyer can decide if they want to see only homes that won't include a buyer's commission. But remember, the best home for you at a great price may be passed up over a few dollars. Low priced, distressed home sellers often offer low commissions to the buyer's agents. Many clients request that we start out just viewing homes that don't require a buyer's commission. If we don't find what they are looking for, we expand the search to all homes meeting their criteria.
What do I owe if I don't buy anything?
NOTHING! Here is the beauty of having your own personal buyer's agent working for you. Even if your agent has shown you 29 homes in the past two months and you decide that your finances just aren't right to buy right now, you owe your agent nothing. Your buyer's agent is not paid an hourly or weekly amount. Your agent is only paid upon the sale of a home.
Why do Realtors work this way?
I've often wondered this myself. None of my clients seem to want to work for free. But, this seems to be the accepted business model in our industry. The first Realtor who charges buyers an hourly fee to show homes will find himself out of business pretty quickly. Instead, my challenge is to make sure my clients feel my services are the best and remain loyal to me until they do buy a home. When my clients are happy, they feel good about referring their family and friends to me. Not all relationships work out, but the Realtor who stays in business over the long haul has learned what clients need and how to make their home purchases a satisfying transaction.