An exclusive buyer agent works solely in the best interest of the buyer even though in most cases, the seller pays the buyer agent out of the proceeds of the sale. It is the buyer agent's job to make the buyer aware of the dos, and the don'ts in the buying process. In the United States, due to the often critical task that a buyer’s agent does it is required that they maintain errors and omissions insurance. Buyer’s agents also have to pay into their State's Real Estate Guaranty Fund based on the Real Estate Commission requirements. Buyer’s agents are also responsible for maintaining various types of technology tools to aid in the quest to research the sales of properties and keep updates on the real estate market. They are required to live up to professional ethics to belong to associations that keep them up to date with the right contracts and forms to protect the buyer's interest. Buyer’s agents have to continually take education to stay abreast of current law to qualify to renew their license terms.
Buyer’s agents only get paid out of results, so buyer’s agents are motivated when they have an exclusive buyer's agreement. In the buying process, the agent has to use many resources that will be a direct cost to the real estate agent regardless of the outcome. The buyer’s agent will spend a considerable amount of time to research and find the house of the buyer's specification, and negotiate the best deal for the buyer.
Picking the right agent is not as difficult as it may seem. Some buyers may think that to find the right agent, they should ask the agent a lot of personal questions about the agent. Such as how long have you been an agent? How many houses have you sold? These questions are not exactly the ones to spot a talented real estate agent. How long a real estate agent or how many houses an agent sold is not a high qualifier to find a skilled real estate agent. Instead, you should notice the type of questions that the buyer agent asks. Logically, a buyer's agent just meeting a buyer needs to ask questions of the buyer to understand the buyer's needs to create the right solution. Assumptions in real estate are a recipe for disaster. Some experience agents may tend to get overconfident and fall prey to their premises.
A qualified agent knows all the right questions to ask a buyer because a skilled buyer's agent takes nothing for granted. The competent buyer's agent will take the lead in navigating the buyer through the buying process and give reasons to support each of the agent's actions due to the discovered needs of their buyer. A buyer must feel comfortable to talk about any concerns at any time with their buyer agent. If a buyer does not feel pleased to speak with their buyer agent, then the buyer is with the wrong buyer agent and must change that agent.
At times it may appear that the buyer's agent is selling the buyer a house. However, the buyer's agent is working in a different capacity from a selling agent when the buyer's agent has an exclusive buyer's agreement. The buyer's agent is not about selling the real estate property in question but instead supplying the pro and cons of the purchase of the real estate property. Though buying and selling seem similar, the difference is drastically different. For instance, a buyer's agent advises a buyer that the buyer should compromise on their needs of specific amenities due to the price of houses in their current market. In this scenario, the buyer's agent lets the buyer focus on the bigger picture, and that is the location. The buyer's agent knows that buyers need to change or update specific amenities in their homes that will change with time.
It is part of a buyer's agent service to advise a buyer to overlook somethings due to market conditions for the greater good of their client's best interest.