Since the recent verdict in the Sitzer/Burnett case against the NAR and other brokerage defendants and the emergence of copycat lawsuits in several states, the role and value of the buyer's agent have come under immense scrutiny. While the case focused on the arrangement of a seller paying a commission on the sale of their home to both the listing agent and the agent who represents their home buyer, many have begun to consider what the verdict ultimately means for a buyer's agent.

Zillow and Redfin provide easy access to listed properties, so what is the point of working with a buyer's agent when you can source properties and see a schedule of open houses to tour the homes? What do agents actually do that buyers can't do for themselves?

What does a buyer's agent do?

A buyer's agent identifies potential properties, arranges tours, and shows homes to their clients. Once a buyer finds a property they want, their agent reads and explains the disclosures and prepares the offer. But the real work of representing a buyer starts after an offer is accepted. One of the most important jobs of the buyer's agent is to ensure that the deal closes by working closely with the listing agent, lender, and other professionals until the close of escrow. During a recent transaction, I spoke to the listing agent daily, The Department of Building Inspection, over twenty home insurance agents, and three electricians, all to finalize a home purchase for my clients. It worked...we closed!

Access

Through professional tools like the MLS (multiple listing service), agents can access properties not shown on consumer sites like Redfin, Zillow, and Realtor.com. "Coming Soon" listings appear on the MLS but not other sites. By being aware of these properties, buyers will be ready to act quickly when the property comes to market or may make a preemptive offer. The MLS also contains listing notes about the property that may influence a buyer's consideration of the home or their offer.

Market Knowledge & Expertise

One piece of advice I received when I started my career in real estate is to tour homes constantly and consistently. "You can't sell it if you don't see it." When a client is looking for a specific home, I tour all possible listings so they don't have to. Even if I'm not representing a specific buyer, I see properties on our weekly Broker's Tour and review the MLS daily. Touring is time intensive and can quickly become a drag for clients, not to mention that many properties are shown in the middle of a work day or on weekends. While going to weekend open houses can be fun at first, it quickly loses its luster. A buyer's agent will preview potential properties and rule them in or out to consolidate the buyer's home search.

Touring Properties

My job is to see it so you don’t have to. I see properties on a daily basis and am very familiar with San Francisco neighborhoods and homes on the market.

Frequent touring helps realtors develop relationships with other agents and understand the current local market. It also provides valuable insider information and helps determine seller expectations to prepare a competitive offer.

When you’ve found a home you want to buy, you’ll want to know more about its history. Property disclosures contain details about a property's condition and other facts about the home that may impact its value. Your agent will request the disclosures if you're interested in a specific property. Disclosures are lengthy and may contain inspection reports, permit histories, financial statements, and other documents related to the home. Sifting through and understanding each document is a necessary yet often overwhelming task. A buyer's agent is accustomed to reading these documents and will review them with you to help guide your offer decision.

Relationships:

As in many professions, real estate depends on developing and maintaining strong professional relationships with a network of people, including other agents, lenders, and home insurance agents.

Working with a respected agent in the real estate community may be what ultimately helps a buyer find and close escrow on their home. Many agents work with sellers who prefer to sell their homes off-market. A good agent will know about off-market properties that may fit the needs of their buyer clients. Listing agents consider who their counterpart in a deal will be, and if a comparable offer is between two agents, the more respected and collaborative of the two buyer's agents may prevail.

Through their relationships with lenders, agents can often expedite the initial steps of the pre-approval process and equip their buyers with everything they need to make a strong offer on a desirable property expected to receive multiple offers.

While we have yet to determine the NAR lawsuit's impact, we anticipate changes to a decades-old process of buying and selling a home, including how agents are compensated. A potential outcome often mentioned is that buyers may choose to represent themselves when purchasing a home. Representing yourself in a real estate transaction as a buyer will be more challenging than expected and may expose you to issues impacting your home-buying success. Find a trusted and knowledgeable agent who is engaged in the real estate community and will work hard for you.

Unlocking Your Dream Home: The Power of Partnership with a Buyer's Agent

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