What is a Buyer's Agent?
A buyer's agent is a licensed real estate agent who represents the purchaser in a real estate transaction. The buyer's agent helps find suitable properties, writes and submits offers, negotiates price and terms, coordinates inspections and financing, and guides the buyer through closing. Their fiduciary duty is to the buyer, meaning they must act in the buyer's best interest throughout the transaction.
Following the 2024 NAR settlement, buyer's agent compensation is no longer automatically offered through the MLS. Buyers now typically sign a buyer representation agreement that specifies the agent's compensation terms before touring properties. This shift has made the buyer-agent relationship more transparent and formalized.
What a buyer's agent does
Property search: Access to MLS listings, off-market opportunities, and coming-soon properties. The agent filters options based on the buyer's criteria and provides context about neighborhoods, schools, and market trends.
Offer strategy: The buyer's agent advises on offer price based on comp analysis, market conditions, and the property's condition. They write the offer, including contingencies and special terms, and present it to the listing agent.
Negotiation: After offer submission, the buyer's agent negotiates on price, repairs after inspection, closing cost credits, timelines, and other terms. A skilled negotiator can save the buyer thousands of dollars or secure favorable terms that a less experienced agent might not pursue.
Due diligence coordination: Scheduling and attending home inspections, reviewing inspection reports, negotiating repair requests, coordinating the appraisal process, and monitoring loan progress to ensure on-time closing.
Buyer's agents and investors
Many cash buyers and investors work with buyer's agents who specialize in investment properties. These investor-friendly agents understand concepts like ARV, cap rate, and assignment of contract. They can identify properties with investment potential that retail agents might overlook and can write offers with investor-specific terms.
Some investors choose not to use buyer's agents to avoid commission costs or because they prefer direct negotiation. However, an experienced investment-focused agent can often negotiate savings that exceed their commission and provide liability protection through proper contract drafting.