What's the point of a Buyer's Broker? S/O Buying a House...

Ashrei

Sat, Nov 28 2015, 9:37 pm

Hello - on the thread regarding what you wish you knew before buying a house, I mentioned that I wish I got a buyer's broker, bc my impression is that a buyer's broker advocates for you more, but I could be wrong.

Specifically, regarding the cost of a house: Obviously, the seller's broker wants to get the seller the max amount for the house so max on his commission. But if the buyer's broker's commission is ALSO dependent on the sale price of the house, isn't that a conflict of interest?

So now that I mention it, what is the point of a buyer's broker?

ETA: If you have actually used one to purchase a house, it would be especially interesting to hear from you.

ez-pass

Sat, Nov 28 2015, 11:13 pm

A buyers broker is there for you. They negotiate with only your interests in mind. They listen to you and find a home that fits your criterias.a buyers broker is extremely important.

amother

Black

Sat, Nov 28 2015, 11:28 pm

For one thing they can save you a lot of time and energy. They know what's on the market and they know what you're looking for and they will often look at the homes before showing them to you (and not bother you with what they know you will not find acceptable). They are particularly helpful in neighborhoods where real estate is hot and houses go so fast that they're sold before you knew they were listed. If you are a novice at buying, they will know what questions to ask (is this build to code, how old is the roof, etc.), help you find an inspector and real estate attorney when needed and just hold your hand through the sometimes stressful process. It's true they make more money if you pay more for your new home, but since new clients largely depend on word of mouth (you recommending them to your friends and neighbors) they will want to make you very happy.

amother

Smokey

Sat, Nov 28 2015, 11:28 pm

When we bought, in North Jersey, my broker did nothing of value. He didn't come up with any listings we didn't find on our own, and he definitely did not advocate for us. Quite the opposite: he pushed us to bid sooner and higher than necessary, and shirked negotiating the ridiculous terms the seller wanted. He also did not want to negotiate concessions for things which came up on inspection, leaving it to our attorney. (I'm fighting the urge to name him, a prominent local broker and shul member.)

Just make sure you get a good attorney who will work for you. The broker is not necessary, but since they are paid by the seller you may as well get one.

amother

Smokey

Sat, Nov 28 2015, 11:30 pm

amother wrote:

In theory, yes. In practice, I've found the opposite.