Many first time home buyers don't realize the value of a buyers agent. Many assume they have to pay an agent to help them with their purchase and with all the other fees tacked onto a sale, it can be overwhelming to say the least.
But using a buyers agent actually costs the buyer nothing and save you hundreds if not thousands over not using one. Here is how this works:
Southern Utah buyers agents receive a commission from the seller of whatever home you choose. When the seller lists the property there is a certain percentage of that sale that is real estate commission. If the listing agent brings the buyer, they receive the entire commission. If there is another agent involved such as a buyers agent, that agent gets half the commission. It's essentially split between the two agents. Naturally the listing agent will want to find the buyer first so this is a great incentive when selling your home. The listing agent would love to receive the entire commission. But having a buyer's agent bring the buyer ensures you better representation and a more confidential transaction.
The listing agent is working for the seller first and foremost. That was the originally agreement to sell a particular house. The buyers agent is working for the buyer and not any particular seller. This ensures your interest, finances and goals are priority over selling any specific home.
Knowing that your buyers agent has your best interest at heart and you don't have to pay for it, why wouldn't you go with a buyers agent?
But won't that agent want to sell me the most expensive home to get more commission?
The reality of this is that there is very little difference in commission when considering a $200K home verses at $250K home. The buyer's agent really wants to make sure you are satisfied with your purchase.
How will a buyers agent really save me money?
Knowing your finances and personal situation and keeping it confidential is vital to the negotiation process. If the listing agent knew exactly how much you could afford, how much you have to spend and how much you love the home they can use this information to their advantage and possible not get you the best deal on the home. By using your information and keeping it confidential, your buyers agent can negotiate on your behalf for the best price and terms.