In 1983, a Federal Trade Commission study revealed that over 72% of all home buyers nationwide mistakenly believed they were being represented by the agent who was showing them homes. As a result, laws requiring agents to disclose exactly who they represent have been passed all over the country. When consumers became aware that most agents worked for the seller, they began demanding their own representation. In response, Realtors began offering exclusive buyer representation to home buyers.
Buyer's agents work exclusively for homebuyers, not sellers. This new home buying option ensures that you, as a homebuyer, have someone protecting your interests and serving your needs.
A buyer's agent, unlike a traditional seller's agent, can openly discuss the pros and cons of a particular home with you, advise you on how much you should offer for the home, and give you other advice on developing a good negotiation strategy.
By helping you negotiate the best possible price, your total cost--house plus commission--is usually less than the house price you likely would have to pay without the services of a buyer's agent. What's more, most sellers, eager to show their house to as many potential buyers as possible, will agree to pay the commission for you. In fact, a buyer's agent can build this into your agreement to purchase your new home!
A buyer's agent will likely show you a greater variety of homes than a seller's agent. A seller's agent has little financial incentive to show you "for sale by owner" homes, foreclosure or other forced-sale properties, or probate properties. Seller's agents aren't guaranteed a commission on these types of homes. There's no limitation with a buyer's agent.
In short, a buyer's agent can help you get the best possible home at the best possible price.