16 Sep 3 Tips to make the most of hiring a buying agent
Hiring a buying agent is an important decision when purchasing a home. What should you consider when choosing your agent? In the following article, we’ll provide 3 tips to help you find the perfect buying agent that suits your needs!
Tip 1: Review the terms of the buying agent
Carefully read the terms of service before hiring a buying agent. The fees charged for buying services can vary significantly. Some agents charge a percentage of the purchase price, while others work with fixed rates, ranging from around €1,000 to several thousand euros. One agent may actively search their network and assist you throughout the entire buying process, including property viewings, negotiating strategies, arranging structural inspections, and signing the purchase agreement. Some agents only step in during the second viewing of a property. Keep in mind that withdrawing from an agreement may also lead to additional costs. For example, an agent may charge you for failed negotiations on your behalf.
Tip 2: Stay vigilant during your purchase
A good buying agent ensures that you don’t rush into a purchase, like buying a home without financing or structural inspection contingencies. In a heated housing market, it’s important to take a step back. Some buyers immediately make an offer on the first home they see. Be cautious and verify that all promised work on the property has actually been completed. You don’t want to discover any issues only after moving in. If something is wrong, it’s better to keep searching for a property that meets your expectations than to settle for the first available home.
Tip 3: Pay attention to the asking price!
According to the Dutch Cooperative Association of Real Estate Agents and Appraisers (NVM), a buying agent doesn’t always have to discourage you from bidding above the asking price. However, they should inform you of the realistic value of a home. With rapidly rising property prices, actual values are often much lower than the asking prices. The agent should also warn you of potential financing issues if you buy a home for more than its asking price. Mortgage lenders calculate the loan amount based on the appraised value, which is often lower. You may have to finance the difference between the appraised value and the purchase price yourself. A good buying agent will protect you from such financial surprises, as it could harm their reputation if the sale falls through due to financing issues.
Curious about what exactly a buying agent does? We’ve also written a blog on that topic!
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