Ask Sacramento Real Estate Gal

Sacramento Real Estate Gal,
I've never understood why a buyer needs an agent. Is it about making sure the escrow is handled correctly? The paper work? What would your fee be as a buyer's agent? - Steve E.

Answer:

Thanks for asking that question, Steve!

A home buyer doesn’t specifically “need” an Realtor, since you can just drive around and make sign calls to the agent who has listed the home for sale. However, it is a good idea for the home buyer to have his own agent so that the real estate transaction can run a little more smoothly. For example, you can view 5 – 6 different homes in one go rather than making multiple appointments with multiple Realtors. You just have the one. Also, lately, listing agents are hired by the bank to sell their REOs. These listing agents have anywhere from 10 – 100 listings active at any given time. From what some clients have told me, they don’t even get a return call from some. The listing agents count on you – the home buyer – having a buyer’s agent to show you the property. (We have e-keys that open the lockboxes you may have seen. The times the visits occurred are recorded and our keys are tracked.)

Besides getting escrow handled correctly, it’s also a good idea to have a buyer’s agent so you have representation during escrow. Especially if you are a first time buyer and have never bought or sold real estate before, chances are you don’t know what to ask for on the contract. The listing agent is first and foremost the seller’s agent. When he signs you on as well he becomes a dual agent with a duty of "fair honest dealing" (contract terms) to both the home seller and home buyer. Being a dual agent, while not illegal in California, still seems a little odd to some people and they want to ensure that they have their own Realtor looking out for their interests.

There is almost never a fee for a buyer’s agent. And that’s true for me as well. The buyer’s Realtor gets paid at close of escrow. Usually, the fee is split from the listing agent’s fee. So if the normal commission to sell a house is 6% of the sale price, the listing agent gets 3% and the buyer’s agent gets 3%. (If you were to buy the house directly from the listing agent, the “dual agent” gets to keep the entire 6% so it doesn’t really make a difference to the buyer on the fee side of things.)

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