Are you thinking about utilizing or not utilizing a local Nashville Buyer’s Agent? First are you sure you know what a buyer’s agent is? What do they do? How can they help you?
In short: A competent Nashville buyer’s agent will get you from being a potential homeowner to becoming a happy homeowner.
First a couple things you need to know about hiring a buyer’s agent.
BUYERS REPRESENTATION AGREEMENT: Legally, there has to a signed agreement in place called a Buyer’s Representation Agreement for an buyer’s agent to represent you. A Buyer’s Representation Agreement is a legal document that is an employment contract that spells out the duties and responsibilities of both parties – for both you as the client and the agent. Until you sign the form you are not legally be represented. Once you sign the document it establishes agency and assures you that the real estate agent legally must use their best efforts and offer you a high level of service.
PAY: How does your buyer’s agent get paid? Well first, most real estate agents work for a broker. For example at the Nashville on the Market Real Estate, our agents work under our broker. Now pay works a little different in real estate transactions. So traditionally a seller has made an agreement with their listing agent to pay the brokerage a certain % of the sales price (aka commission) for selling their home. Now the seller’s brokerage has agreed that if a buyer’s agent brings a buyer – they will offer the buyer’s brokerage a portion of the agreed upon commission – let’s say half of the total. Thus, the seller is paying the buyer’s agent’s brokerage out of the proceeds at closing. There are instances where this is different and a buyer may pay their brokerage directly – although rare. You need to have your agent go over these circumstances, like a for sale by owner property or if they have a base brokerage commission – this should ALL be outlined in the buyer’s representation agreement and explained to you. But typically the commission is paid by the seller to the listing brokerage who allocates a portion of it with the buyer’s brokerage.
WHAT DOES YOUR BUYER’S AGENT DO FOR YOU?:
CONSULT: Your buyer’s agent should begin by setting up an initial consultation. Your agent should try to learn your wants and needs on the front end so you aren’t wasting time looking at properties that don’t meet your needs. They should educate you on the process and potential neighborhoods. We at Nashville on the Market pride ourselves on being real estate consultants as opposed to transaction representatives.
LENDING: A buyer’s agent to some extent should assist you in the lending process. First, you do not have to use a lender that is suggested by your agent. It may help the process, because the agent has worked with the lender before and hopefully they know they are hard working and can get the deal done. However, it is not mandatory you work with their preferred lender. We have multiple lenders we can recommend to our clients – and we try to set up lending consultations on the front end as well so our clients are informed/educated buyers. Also, lenders we work with know we expect excellent communication throughout the transaction and full disclosure to our clients on the front end.
HOME SEARCH: With the rise of the internet, home searches are mostly done online – but your agent does have more information on the multiple listing service than you do on sites like Zillow etc. For example do you know if that property you are looking at is in a flood zone? Probably not. Do you know if there is already a contract on the property or if the seller had recently had to reinforce the foundation? Buyer’s agents are very important for the home search. They should help with introducing properties that may work for you and your family. They also can get you inside the properties quickly and efficiently so you can beat out the competition. In addition, we at Nashville on the Market utilize our large network of agents to try and find off market and coming soon properties for our clients as well.
PERFORM DUE DILIGENCE ON PROPERTY: After finding a property you want to write an offer on, your buyer’s agent should be sending you tax records, property disclosures, and more. They should be doing due diligence on the property on the front end.
NEGOTIATION AND CONTRACT: A buyer’s agent is responsible for writing your offer and negotiating the details. They should know EVERY LINE ON THE CONTRACT. Remember this offer is legally binding you to buy a property for hundreds of thousands of dollars or even millions – it should not be taken lightly. The contract should be explained to you with the terms. You should know approximately what you are looking to spend prior to submitting the offer – and the lender and agent should supply you with a fee sheet outlining this. A great buyer’s agent will try to get you the best deal for the current market, make sure you are protected and assure you are buying a property that works for you and your future needs.
INSPECTION AND NEGOTIATING REPAIRS: A local Nashville buyer’s agent will help you schedule any home inspections you want and will attend the inspection. We recommend all of our buyer’s attend the end of inspection so the inspector can walk you through the findings and we attend EVERY inspection. The Nashville on the Marker Group believes you can not request repairs if you don’t have them explained to you by a professional. Then unless waived by the contract, we can request repairs be made from the seller per the inspection report. A buyer’s agent will help you with these negotiations, so you can feel good about purchasing the property.
CLOSING: We at Nashville on the Market Real Estate pride ourselves on being problem solvers. Our goal is to get you to the closing table. During the contract to close process – problems arise with inspections, repairs, lenders, title, etc – our job is to protect you and do our best to get you the home you want.
FOLLOW UP: A GREAT local Nashville buyer’s agent will be there for you after the closing. We pride ourselves in being a resource for our clients after closing and for any of their homeownership needs.
If you are thinking about buying a home – reach out to us at 615-310-8661 or lisa@nashvilleonthemarket.com.
xoxo,
Lisa Stigliano
Nashville Buyer’s Agent
Co-Owner of Nashville on the Market Real Estate
