Home Broker: Hiring One’s Own or Using the Seller’s?
When buying a house, is it better to hire and pay one’s own home broker than to use the seller’s agent?
This is a question that enters the minds of individuals who are planning to buy a home but do not have the time to go around and view homes by themselves or persons who want to ensure that the home purchasing process is done professionally.
Most realtors and real estate consultants interviewed in an informal survey advise prospective home buyers to hire their own real estate brokers. They explain that there are only two key questions when choosing between hiring one’s own home broker and the seller’s broker — which of the two are you going to pay and which will look after your interest?
Realtors recommend that you hire and pay your own home broker so that he will look after your own interest and provide you with guidance in relation to your home buying preferences and requirements.
They also say that you can conduct your home search and purchase with the seller’s home broker or agent and you do not have to pay anything, but the loyalty of the seller’s broker will be to the seller and not to you, although he will do what he is obliged to do in typical home sales processes.
The seller’s home broker will try to get the highest home price that he can get from you, since home sales commissions are usually percentages of the final selling price.
Other real estate professionals also advise that sellers’ agents are not permitted to help prospective buyers on how to reduce the selling price; otherwise, they will lose their home brokerage license.
A smart home broker working for a buyer would work only for the interest of the buyer, thinking that if he satisfies the buyer, the buyer would refer him to his social network and would increase his business.
Real estate consultants also say that you have two options with the home broker that you are going to hire: sign a contract with the broker or have a verbal agreement with him in states that do not require home broker-buyer contracts.
But nowadays, it is best to have written and notarized agreements so that both parties are protected from unexpected developments. Remember to lay out expectations and obligations for you, the home buyer, and the home broker.
