Benefits of Real Estate Agents for Home Buyers

Buying a home is a significant financial transaction and for most people, one of the biggest decisions of their lives. That’s why, according to Zillow research, about 88% of home buyers use an agent to help them navigate the complicated and potentially emotional home search and purchase process. For most buyers, having an expert by your side who has your best interests in mind is a clear advantage.

Why use a real estate agent to buy a home

According to Zillow research, buyers who hired agents were most likely to rank the following services among the top three most valuable provided by their real estate agent:

• Helped decide the details of their offers (57%)
• Organized and submitted the paperwork associated with purchasing their home (53%)
• Identified homes to consider (43%)
• Took buyers on private home tours (43%)
• Led contract negotiations (43%)
• Gave a mortgage lender referral (34%)
• Gave an inspector referral (29%)

Whether you're a first-time buyer or experienced in the market, understanding the benefits of working with a real estate agent will help you make the best decision for your own personal home-buying journey. Here are five advantages to know.

1. They can help you save time and money on your home purchase

Agents can save you immeasurable time and energy, and potentially a substantial amount of your hard-earned cash. They can help you avoid paying too much for a house, can use negotiation strategies to get you a better deal, and ensure you are fulfilling all contractual obligations so you don’t end up in legal or financial hot water.  Here’s a closer look at some of the major cost-saving benefits of working with an agent.

Determine fair market value

When you’re ready to put an offer in on a home, your agent should be able to help you determine an appropriate offer price, based on the fair market value of the home and market conditions. They’re up-to-date on market trends and can provide a clear picture of a home’s worth so you can stay competitive, yet also within your budget. To do this, they’ll run a comparative market analysis (often abbreviated as CMA), using comparable, recent nearby sales. Your agent can also help you adjust your offer to account for any visible issues in the home, or negotiate the home price to cover needed repairs unearthed by a home inspection. 

Negotiate the listing price

Your agent most likely knows the local market better than you do, so they can let you know when it’s reasonable to push for a better deal. Market conditions change month by month, season by season, and neighborhood by neighborhood, and your agent should be well-versed in these fluctuations. For example, just because you’re buying in a sellers market, it doesn’t mean you won’t be able to negotiate — it all comes down to the individual home, price and seller. A skilled agent can also gain pricing insights by talking to the listing agent. For example, before you submit an offer, your agent can ask the seller’s agent how firm they are on price. They’re also skilled in navigating bidding wars, and will know if you should include an escalation clause, provide flexible closing dates or add an appraisal contingency to your offer. An appraisal contingency alone can save you thousands of dollars if the home is valued for less than your offer amount.

Spot red flags

You may know this feeling: You walk into a home and instantly feel like it’s “the one.” And it might be! But your agent will spot things that you might miss while wearing those rose-colored glasses. They’ve toured countless homes and have learned how to spot warning signs for expensive issues from across the room (or house), such as water damage, termites, failing roofs and beyond. This knowledge can help you avoid a home that’s more of a fixer-upper than you’re looking for, and also help you avoid inspection issues before closing.

Keep the purchase on track

There are dozens of deadlines and details to keep track of in a home purchase. Your agent will make sure you’re fulfilling your end of the deal, which can help you avoid costly missteps. This includes working with your title and escrow and loan officers to make sure funding is secured, as well as ensuring inspections and appraisals are scheduled within the contractual timeframe. They’ll also help the closing process stay on course by coordinating underwriting paperwork between you and your loan officer.

Provide guidance for any additional costs

Your agent can help you save on additional costs that come up while purchasing your home. They can recommend trusted home inspectors or other home repair professionals, legal services, financial assistance and more. Their established relationships with these providers can give you peace of mind during a stressful process — and could also result in cost savings.

2. They’re your personal co-curator and sounding board

You can search most public listings, both agent-listed and for sale by owner (FSBO), on Zillow, but there likely will come a time where you have so many homes saved, you need an objective collaborator. You can send your list of saved homes to your agent, or share feedback after a tour. Since agents work with a lot of buyers like you they’ll have a good working knowledge of active listings that are likely to fit your criteria. They’ll be able to quickly make suggestions based on your must-have list, and even help you figure out where you may need to compromise based on what’s available on the market. If you’re looking for a very specific home, you might have better odds of finding it when you work with an agent.

3. You’ll get advocacy and support navigating a complex financial process

The home purchase process can be overwhelming; 50% of home buyers said in a survey they cried at least once during their home buying journey. Even experienced buyers struggle to keep up with all the details. A great buyer’s agent not only spends their time understanding exactly the types of homes that fit your criteria, but they’re negotiating and drafting contracts, advocating on your behalf and generally overseeing the end-to-end process. Having an experienced agent by your side can be a relief, especially with so much money on the line.

Once you’ve signed a buyer’s agency agreement with a real estate agent, they'll have a legal and ethical obligation to serve your needs, which can include:

• Working for your interest in the transaction
• Providing disclosures
• Offering guidance
• Keeping certain information confidential

4. They’re your access to professional negotiating power

If you negotiate for your home purchase without experience, your passion could compromise your ability to get what you want. Agents know how to frame requests in a way that makes sellers more likely to oblige, and they can do all the negotiating while maintaining a good rapport with the listing agent and seller, which can come in handy if issues come up later in the deal.

5. They’ll be your expert guide as you navigate a home purchase contract

Home purchase contracts are complex and they can include multiple contingencies — especially if you need to sell your existing home in order to buy your next one. Your agent will help you juggle disclosures you’ll want to request, like documentation on mold, lead paint and radon, and average utility bills.

Agents also have tools that make signing stacks of paperwork much less tedious. In many states, agents use digital signatures, email delivery systems and mobile signing capability, so you won’t have to worry about going into an office multiple times to sign documents during the average 30-45 day escrow period. Thanks to this technology, you may even be able to complete your closing without ever leaving your home.

Ready to begin your search for a new home? Search homes on Zillow or connect directly to a buyer’s agent in your area who can help you find the property of your dreams.