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What is a Buyer Broker?

Jim B.
Jim B.

A buyer broker is an agent who helps a prospective home buyer find the right home and negotiate a manageable price. The main distinction between this kind of broker and other real estate professionals is that she generally has no allegiance to the seller of the home. By using a buyer broker, a home buyer is usually shown a greater variety of homes and can shop around with much more latitude than if she was using a broker representing the homes themselves. Buyer brokers usually are paid via commission or by a flat fee at the beginning of the agreement.

The average person looking to buy a home might contact a real estate agency to help him with the process in the hopes that the agency will get him into an ideal home. What people often fail to understand is that these agencies often have the obligation to push homes that they represent, thereby limiting the scope of the buyer's search. These homes might represent an imperfect fit for what the buyer is seeking. For that reason, a buyer might wish to contact a buyer broker to properly cater to his wishes.

A good buyer broker can calculate current home values.
A good buyer broker can calculate current home values.

When someone looking to buy a home contacts a buyer broker, she can be sure that the broker will have the buyer's interests at the forefront of any negotiations. Unlike real estate agents who are looking to either sell a home that is being pushed by their agencies or those who are looking to bag a big commission, buyer brokers can seek out the very best deal for their clients. This generally comes from their ability to search out any home on the market.

It is important to note that a buyer broker may indeed still get a commission from the sale of the house as pay for his work. Even if this is the case, the broker will most likely want to cultivate a good relationship with the buyer and make sure that the buyer makes a purchase that fits. As a result, a broker representing a buyer most likely won't drive up a price just to get a higher commission.

Depending on the agreement, a buyer broker may also be paid with a flat fee by the home buyer. Among the benefits of hiring buyer brokers is the fact that they are licensed professionals who have an extensive knowledge of real estate and the realities of the market that may not be available to non-professionals. In addition, buyer brokers may be able to offer buyer special opportunities like cash back.

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    • A good buyer broker can calculate current home values.
      By: Dmitry
      A good buyer broker can calculate current home values.