What is a representative? Someone that represents something or someone obviously. But is it smart to have a representative when you are the buyer of real estate? Most places in the country call it a buyer's agent but my Fairbanks homes expert Cameron Harter is a professional buyer's representative. What's the difference? Nothing really. It's simply the way Alaska has set up their real estate system.
A buyer's representative does just that; represents the buyer in a Fairbanks real estate transaction and no one else. They are not concerned for the interest of any one particular seller. It is not their job to sell a specific Fairbanks home but to find the BEST property for the buyer.
A buyer's representative will focus on the buyer's needs, finances and terms all the while keeping what can be confidential private so as to not harm the buyer's side of the transaction at all.
The main reason to use a buyer's representative is cost. It literally costs the buyer's nothing to use a buyer's representative. How do they get paid? And this is where you might think that an agent is not truly working for the buyer, but the agent gets paid from the split commission paid out by the seller of the property.
So you are probably asking, "then they have an ulterior motive in selling me a particular home". But this is really not the case. The buyer's representative will get a percentage of the sale of the home. They don't care what home it is, just so long as it's the right home for you. They are really only concerned about finding the best home for you.
But you might also ask "If the representative is getting paid from the sale of the home, then they would want that sale to be as high as possible." Not necessarily. The amount of the sale does not determine a large enough commission to really make that big of deal. If the selling commission in 3% on a $220,000 home, that fee would be $6600. If the agent got the sellers to come down to $200,000, it would save you $20,000 and only knock off $600 from their commission. Yes, it's $600 but not enough to try and make you pay more than you should on a home.
I hope this clears some things up about how a buyer's representative can help save you money and you don't have to pay a cent. For more tips, visit my Fairbanks real estate expert and he would be glad to help you get the right home at the right price in the Fairbanks real estate area.