Here's Why I'm Using a Buyer's Agent But Not a Seller's Agent

I recently listed my home for sale and I'm on the hunt for a new one. When I listed my property, I did not use a seller's agent. Instead, I used a flat-fee MLS service and listed the home myself. I've sold homes like this several times before.

When I'm looking for a new property to buy, though, I will use a buyer's agent. Here's why I'll hire a real estate agent after I get a mortgage pre-approval and I'm ready to start shopping for a home.

There are different payment structures for buyer's vs. seller's agents

The main reason why I'll hire a buyer's agent instead of a seller's agent is because of the way the payment of real estate agents works.

When a home is sold, the seller generally pays the commission for both the seller's agent and the buyer's agent. The standard is 3% per agent for a total of 6%, although there are some discounted services where seller's agents accept 2.5% or even 2%.

Since the seller pays the commission, I can save money by not hiring a seller's agent. I will still have to pay commission to the agent representing the buyers of my property, but I can save the 3% I would have had to pay if I hired my own seller's agent to help me.

When I hire a buyer's agent, though, I do not have to pay their commission directly. Of course, the seller does price their house knowing they will owe these fees. But, when I've tried to buy houses without real estate agents in the past with the hope I could get a 2% or 3% discount since the sellers wouldn't have to pay my agent, it hasn't worked out that way. Most sellers haven't really been receptive to discounting the property because this is just not the standard -- they expect to pay an agent, but not to accept a lower price.

Since I wouldn't likely save much by not using a buyer's agent -- and I absolutely do save by not using a seller's agent -- it makes sense for me to hire one but not the other.

I use the services my buyer's agent offers

Another big reason why I hire a buyer's agent is because I feel like the services they offer are more worth it to me.

I'm comfortable selling myself since I know how to do the tasks required of me and can handle them easily. I hire a professional photographer, easily research comparable listings to set a price, and have a flat-fee MLS service I have used many times before to help me get my property into the database people use to search for homes.

The flat-fee MLS service makes it easy for people to set up showings with me (I just have to accept or reject their requests from my phone). And I am comfortable reviewing their offers.

When I am a buyer, though, I ask my agent to do a lot -- like drive us around to look at houses, coordinate a bunch of home showings on appropriate days, and help me draft and submit an offer and arrange inspections. These are all things that would take me a lot more time and be harder to do without an agent.

If you are buying or selling a home and trying to decide if you need an agent, consider the costs and the services provided so you can decide if it makes sense for you to hire a buyer's agent, seller's agent, or both. Don't just do what's common -- do what's right for you.