Searching for a new home can be an exciting yet stressful endeavour. With so much on the line financially and personally, having the right real estate representation is key. In Ghana, home buyers and sellers have two main options when it comes to hiring an agent: working with a buyer’s agent or a seller’s agent. But what’s the difference, and how do you decide what’s best for your needs?
Understanding Buyer’s and Seller’s Agents
Buyer’s agents specifically represent the home buyer throughout the entire home-buying process. They work directly for the buyer, looking out for their client’s best interests when it comes to factors like home pricing, negotiation tactics, and contract terms.
In contrast, the seller’s agents represent the home seller. They market the seller’s home to try to get the highest price possible, advise the seller on offers and counteroffers, and aim to facilitate a quick and smooth sale.
So while both assist with the real estate transaction, buyers’ and seller’s agents inherently serve different primary interests – the buyer’s best deal versus the seller’s maximum value.
Key Benefits of Working With a Buyer’s Agent
Hiring a buyer’s agent brings home buyers a host of valuable guidance and representation throughout the purchasing journey. Key advantages include:
Market Expertise
An experienced buyer’s agent will have extensive knowledge of the local real estate market. They can offer insights on factors like:
- Fair home values in different neighbourhoods
- Comps for pricing guidance
- Typical days on the market for different home types
- Competitiveness of the current market
- New housing developments coming soon
Leaning on this market expertise helps buyers make informed decisions when weighing listing options and determining their offers.
Expanded Home Search
In addition to scouring real estate listings from public sites, buyer’s agents have access to exclusive MLS database searches across their brokerage. This expanded view helps match clients with off-market housing options that perfectly fit their wish list.
Schedule Coordination
A buyer’s agent serves as the main point of contact between all parties, helping to coordinate scheduling needs for:
- Property viewings for the buyer
- Inspections
- Appraisals
- Walkthroughs
- Closings
This alleviates much back-and-forth stress for the buyer.
Contract Guidance
Experienced buyer’s agents have likely handled hundreds of real estate purchase agreements. They use this experience to help buyers understand complicated contract verbiage, ensure favourable terms, and negotiate the best price and conditions possible.
Expense Optimization
Beyond the sale price, a home purchase comes with many additional expenses – inspection costs, title fees, insurance, etc. Savvy buyer’s agents look out for unnecessary charges and help clients optimize the total expense of the transaction.
Why Hire a Seller’s Agent?
Alternatively, hiring a seller’s agent offers home sellers targeted marketing and listing expertise to help sell their house faster and for more money. Primary advantages include:
Comprehensive Listing Marketing
The right seller’s agent will market listings across an array of platforms:
- MLS databases
- Social media promotion
- Online real estate sites
- Print advertising
- Targeted email outreach
- Signage
This multi-prong strategy casts a wide net to reach the most potential buyers.
Staging & Photography
Seasoned sellers’ agents also offer guidance on preparing the home for sale through staging and professional photography. This entails:
- Decluttering and repairs
- Style and colour consultations
- Capturing rooms at their best angle
Proper staging and photos portray listings in the best possible light to garner interest.
Pricing Strategies
Pricing a home too high can deter buyers while pricing too low leaves money on the table. Seller’s agents lean on intimate market knowledge to recommend optimal asking prices for faster sales at top dollar.
They also advise on adjusting prices if needed based on showings and offer activity.
Offer Guidance
Seller’s agents help clients weigh the pros and cons of each purchase offer, providing objective insights on:
- Offer pricing
- Desired closing timeline
- Necessity of contingencies
- Financial strength of the buyer
This guidance allows sellers to make informed counteroffers and ultimately select the most favourable deal.
Key Differences: Buyers Vs. Sellers
While buyer’s and seller’s agents both aim to facilitate successful real estate transactions, some fundamental conflicts exist between representing the two parties:
Client Goals
The inherent goals of home buyers and sellers sit on opposite ends of the spectrum. Buyers want the best deal on a home. Sellers want the highest price with ideal terms. So buyers’ and sellers’ agents directly work to get the best outcomes for their respective clients’ interests.
Home Condition Disclosure
Beyond setting list prices, seller’s agents also advise clients on presenting the home favourably while technically disclosing all known defects. Buyer’s agents instead push for full transparency on the home’s positives and negatives before a sale.
Negotiations
During offer negotiations, win-win compromises don’t always exist between the buyer’s deal and the seller’s price. Seller’s agents push for top dollar offers with few contingencies, while buyer’s agents aim to negotiate prices down and secure favourable terms for their clients.
Commissions
The seller pays agent commissions in traditional transactions. So while seller’s agents directly earn from getting sellers more money, buyer’s agents must optimize their client’s price while still securing an offer a seller accepts.
Key Questions to Ask When Choosing an Agent
The best real estate representation aligns with your needs as the buyer or seller. Whether you opt to hire a buyer’s agent, or seller’s agent, or attempt a do-it-yourself approach, ask the following key questions:
Are you a licensed real estate agent?
Confirm licensure and that they specialize in either buying or selling. Never hesitate to verify credentials.
Do you solely represent buyers or sellers?
Understand who they work for to spot any potential conflicts of interest.
What specific services do you provide clients?
Compare offered services to your needs – listings marketing, home search, contract guidance, etc.
How long have you worked in real estate? With how many clients?
Look for extensive experience over many transactions versus new agents who may still be learning.
Which neighbourhoods do you specialize in?
Local real estate expertise ensures an agent can best cater to your target locations.
How will you communicate with me during the process?
Define communication plans and availability expectations upfront.
What percentage commission do you charge?
Compare commission rates against industry averages – often 5-6% split between agents.
By vetting agents thoroughly and asking the right questions, buyers and sellers can secure representation well-suited to guide their optimal real estate outcomes.
Choosing the Right Option: Buyer’s vs Seller’s Agent?
When it comes time to commit to representation, weigh the pros and cons of aligning with buyers versus sellers. Consider which choice best suits your needs.
Buyer’s Agent
Pros:
- Represent buyer interests solely
- Assist across entire home search
- Provide market insights
- Negotiate best pricing/terms
Cons:
- Cannot also list homes for sale
- Less control for sellers over marketing
Ideal if you value purchasing guidance and advocacy throughout the home buying journey.
Seller’s Agent
Pros:
- Specialized marketing to sell faster
- Achieve the highest potential sale price
- Guidance positioning home optimally
Cons:
- Represents seller interests alone
- Less assistance with buyer negotiations
Ideal if you want to delegate listing promotion with the goal of maximum returns on selling your house.
For those looking to both buy and eventually sell, hiring one agent from each category ensures fully aligned representation on both sides of the transaction table.
Conclusion
Ultimately, aligning with the right real estate agent requires understanding their speciality representing buyers or sellers, vetting their qualifications, and determining if they offer services that cater to your needs.
As you navigate the journey to find your perfect home or sell your house smoothly, VAAL Ghana supports agents with exceptional real estate guidance and unmatched local expertise.
Browse our current Harmonia Residence apartments or contact us to learn more about working with VAAL Ghana’s team of sales agents today.
FAQs
What are the main differences between buyer’s and seller’s agents?
The key differences come down to who they represent and their objectives. Buyer’s agents work solely for the home buyer, aiming to negotiate the best deal on price, terms, and conditions. Seller’s agents represent the seller’s interests, marketing the home for maximum value and ideal buyer offers.
Should I work with an agent as a buyer?
Yes, buyer’s agents provide invaluable guidance, from expanded home searches to contract negotiations. First-time buyers in particular benefit from the market insights and purchasing expertise.
As a seller, what value does a seller’s agent add?
Seller’s agents supplement a for sale by owner approach with specialized listing promotion across more platforms, strategized pricing, and advice weighing buyer offers. This makes selling faster and more profitable.
What questions should I ask when interviewing agents?
Key questions include specific services offered, years of experience, neighbourhoods specialized in, typical communication plans, and commission rates. Vet credentials, services, expertise, availability expectations, and fees.
Can I work with a family friend who is an agent instead of a stranger?
It’s possible but can get tricky if problems occur. Just like with family doctors, objective expertise from an agent with no personal ties often proves more functional long-term. Weigh the pros and cons.