The Benefits of Being a Buyer’s Agent
The 2024 NAR settlement has caused some real estate agents to question whether or not it’s worth working with buyers.
Negotiating your own fees upfront and getting a signed representation agreement before showing properties adds hurdles to the buyer’s agent role.
But before refusing to accept new buyer clients, consider some of the benefits of being a buyer’s agent! Here are the top five…
1. Repeat Business Potential
Yes, any agent can generate repeat business from clients buying and selling multiple properties. But a first-time buyer’s agent gets in on the ground floor.
When you represent a first-time buyer, you build trust, perhaps as the only industry expert the buyer knows. Maintain that relationship, and they’ll be highly likely to choose you as their listing agent when they’re ready to sell their starter home plus their buyer’s agent as they search for their step-up home. You might even represent them in investment property purchases, or help their children buy their first homes!
Plus, as the trusted agent for the buyers, you’re the only agent they will recommend when friends and family are looking for a referral to a strong buyer’s agent.
2. Easier Point of Entry into the Industry
Most agents start their real estate careers working with buyers.
Sellers are more likely to either choose the agent who helped them purchase the house or interview multiple candidates to see who they think can find them the most qualified buyers and negotiate the best deal. Buyers are less likely to interview multiple agents, giving new agents a greater chance of securing their business.
Working with buyers also provides great exposure to the market for new agents. Unlike listing agents, who focus on their sellers’ properties, you get to experience multiple properties for every buyer client you have. This builds your knowledge base about your local market, helping you understand what buyers look for, how much they’re willing to pay, and what kind of concessions they expect.
3. Lower Marketing Costs
There are always marketing costs associated with being a real estate agent. You have to market yourself strategically so buyers and sellers can find you.
As a buyer’s agent, you can market yourself inexpensively with a website, social media channels, and digital newsletters to your email list.
But sellers have to market themselves and their listings. Seller’s agents pay for signage, listing advertisements, photography, videography, 3D imaging, brochures, flyers, and open house refreshments. Of course, the expectation is that the commission on the sale will compensate for all of that, but paying these expenses before you earn a commission can cause cash-flow issues.
4. Less Competition as Fair-Weather Buyer’s Agents Shift or Exit
Many established buyer’s agents are unwilling to adapt to the post-NAR settlement industry. They don’t want to have to negotiate their own compensation or be required to secure a signature on a representation agreement before showing property. So they’re shifting focus to listings. Or leaving the industry entirely.
This is great news for the agents who are willing to adapt to the new standards. You’ll have less competition from other buyer’s agents, increasing your chances of landing new business.
5. Greater Job Satisfaction
Sure, helping a homeowner sell their house so they can move on to their next chapter is fulfilling work. But it can also be a little sad. People often sell because of divorce, death, or inability to remain in the home.
Helping buyers, on the other hand, is nearly always a happy occasion - especially when you’re able to help first-timers become homeowners. You know you’re helping people find the houses that they’ll make into homes. And, in most cases, you’re setting them on the path to financial stability by helping them secure an asset with appreciation potential.
Bring Your Buyers to Gatsby Investment - Or Help Us Find Our Next Deal!
Gatsby Investment is a real estate investment company that regularly purchases, renovates, and sells properties in the Los Angeles area. We’re always looking to partner with real estate agents and brokers for mutually beneficial deals.
If you know of any property that meets our criteria for acquisition, please submit the property for consideration. Similarly, if you have any buyers, particularly investors looking for small multi-family structures, please explore our properties for sale. You can even view pre-market properties, so you can give your buyers an early look at properties under construction.
Buyer’s agents play a critical role in the real estate industry, and no NAR settlement is going to change that! The settlement may have created a few additional challenges, but with so many benefits of being a buyer’s agent, it’s worth the extra effort!