Why Buyers Should Use a Realtor: A Guide for Home Buyers!
Buying a home is one of the biggest financial decisions most people will make in their lifetime. Whether you are a first-time homebuyer or a seasoned property owner, having the right professional guidance is essential. A Realtor can provide invaluable expertise, protect your interests, and help you navigate the complexities of the Minnesota real estate market. Here is our list of top reasons why buyers should use a Realtor:
Understanding Agency in Minnesota Real Estate
In Minnesota, real estate agents operate under specific agency laws that define their responsibilities to buyers and sellers. When you work with a Realtor, they owe you duties of loyalty, confidentiality, disclosure, and reasonable care. The main types of agency relationships include:
- Seller’s Agent – Represents the seller’s best interests and works to secure the highest price and best terms for the seller.
- Buyer’s Agent – Represents the buyer’s best interests and works to negotiate the best price and terms for the buyer.
- Dual Agency – Occurs when the same brokerage represents both the buyer and the seller in a transaction. In this case, the Realtor must remain neutral and cannot advocate for either party.
Understanding agency is crucial because it directly impacts the level of representation you receive in your home purchase. Signing a Buyer’s Representation Contract ensures that your Realtor is working solely for you, with your best interests at heart.
Why Sign a Buyer’s Representation Contract?
A Buyer’s Representation Contract is a formal agreement that establishes a working relationship between you and your Realtor. This contract outlines expectations and ensures that your agent is committed to helping you find the right home. Here’s what you can expect:
- Exclusive Representation – Your Realtor is legally bound to represent your interests, rather than the seller’s.
- Market Expertise – Your agent provides data and insights to help you make informed decisions.
- Negotiation Power – Your Realtor advocates for you in price negotiations, contingencies, and closing terms.
- Access to More Listings – Realtors often have access to off-market properties and can help you find homes that are not publicly listed.
- Professional Guidance – Your agent helps navigate contracts, financing options, inspections, and closing procedures.
Signing this agreement solidifies your Realtor’s commitment to you and ensures you receive full representation throughout the buying process.
Who Pays for a Buyer’s Realtor?
In most cases, the seller pays the Realtor’s commission, which is typically included in the sales price of the home. Here’s how it works:
- The seller agrees to pay a commission to their listing agent and then the listing agent then shares a portion of that commission with the buyer’s agent.
- In some cases, the buyer’s agent commission may need to be negotiated in the purchase agreement if the seller is not offering one upfront.
Because the seller usually covers this cost, most buyers can work with a Realtor at no direct out-of-pocket expense. If not, please talk with our agents for other creative solutions.
What Skills Should You Look for in a Realtor?
Not all Realtors are the same, and choosing the right one can make a huge difference in your home-buying experience. When selecting an agent, look for these key qualities:
- Local Market Knowledge – A strong understanding of neighborhoods, schools, and market trends.
- Negotiation Skills – An ability to secure the best price and terms for your purchase.
- Experience & Reputation – Proven success in representing buyers and a good track record of customer satisfaction.
- Communication & Availability – Prompt responses, clear explanations, and a commitment to keeping you informed.
- Network & Resources – Access to lenders, inspectors, contractors, and off-market listings.
- Problem-Solving Ability – A proactive approach to handling issues that may arise during the transaction.
- NO violations with the Dept of Commerce or the MN Realtors! You can verify if your potential Realtor has any violations with the Dept of Commerce.
Why You Should Interview Multiple Realtors
A home purchase is a significant investment, and you should carefully select who represents you. Instead of choosing an agent randomly or working with the first one you meet at an open house, take time to interview multiple Realtors. Consider asking:
- How long have you been working as a buyer’s agent?
- How familiar are you with the area I want to buy in?
- What strategies do you use to find homes, including off-market properties?
- How do you handle negotiations to ensure I get the best deal?
- What is your availability, and how do you communicate throughout the process?
By interviewing agents, you can determine who aligns best with your needs and goals.
The Value of a Realtor: More Than Just Finding a Home
Many buyers believe they can simply search online for homes and make an offer when they find one they like. However, a Realtor provides much more than just access to listings. Here are some of the key advantages of having a dedicated buyer’s agent:
- Access to Off-Market Listings: Realtors often have access to homes that are not listed on public websites. These off-market properties may include:
- Pocket listings (homes not yet publicly listed)
- Foreclosures or bank-owned properties
- New construction homes not widely advertised
- Homes coming soon to the market
- Strong Negotiation Skills: A skilled Realtor knows how to negotiate to get you the best price and terms. They handle critical negotiations, including:
- Purchase price adjustments
- Closing cost assistance
- Repair requests after inspections
- Flexible closing dates to match your schedule
- Handling the Entire Buying Process: Buying a home involves numerous steps and legal documents. Your Realtor will guide you through:
- Writing and submitting offers
- Understanding contract contingencies
- Managing home inspections and appraisals
- Coordinating with lenders, title companies, and attorneys
- Ensuring a smooth closing process
- Offering our Carriage Concierge to make your purchase smooth and easy!
- Protecting Your Interests: A buyer’s agent works solely for you, ensuring that your interests—not the seller’s—are prioritized. They help identify potential red flags in properties, analyze fair market value, and make sure you are making a sound investment.
Why a Realtor is Essential for Buyers in Minnesota
A Realtor provides expert guidance, market insights, and negotiation skills that can help you find the right home at the best price. Signing a Buyer’s Representation Contract ensures that your agent is working for you, and in many cases, the seller covers the cost of their commission.
By taking the time to interview and select the right Realtor, you can ensure a smoother, less stressful home-buying experience. Instead of randomly shopping for homes, choose a professional who will represent your interests, negotiate on your behalf, and help you find the best opportunities—including off-market listings.
Key Takeaways:
- Realtors in Minnesota operate under specific agency laws that define their responsibilities.
- A Buyer’s Representation Contract guarantees that your Realtor is working in your best interest.
- In most cases, the seller pays for the buyer’s Realtor’s commission.
- Interview multiple Realtors before choosing one to represent you.
- Realtors provide expertise beyond finding homes, including negotiations, legal guidance, and access to off-market properties.
- If you are working with a “bad” agent, speak up! You can file a complaint with the MN Realtors or the MN Dept of Commerce!
If you’re ready to begin your home search in Minnesota, start by finding a qualified, experienced Realtor who aligns with your goals. Your home purchase is too important to navigate alone—let a professional guide you every step of the way!
Written with ChatGPT along with Karen Stang as reviewer! We hope you found this helpful!