Do You REALLY Need A Buyer's Agent?

If you are thinking of buying a home, you need to know that the real estate market has experienced some rather dramatic changes in the past few years. Did you realize that Buyer's Agents are available to help you find a home, negotiate the price and terms, and protect your best interests?! Remember that most homes are listed with a realtor®; therefore, they have representation. Unless a buyer enters into an agency agreement with a realtor®, they are unrepresented!

When I represent my clients as their Buyer's Agent, we purchase a home; I do not sell them a house!

WHO DOES YOUR REAL ESTATE AGENT WORK FOR?

Traditionally, real estate agent assisting a buyer un a home purchase process functioned as the agent or sub-agent of the seller and owed allegiance to the seller. Unless the real estate agent and the buyer are working under a 'buyer agency' contract, the agent is legally the agent of the seller and is obligated to work in the best interests of the seller. This means many things, but of greatest importance to buyers is the fact that the agent must always try to obtain the highest price for the seller's property - unless the agent and customer have entered into a Buyer's Agent agreement. This is nothing new. It has always been this way.

What has changed is that today's buyers are demanding representation too. That is why we now have buyer agents. Only a buyer agent can work for and represent the best interests of the buyer.

WHAT DOES A 'BUYER AGENCY' CONTRACT MEAN?

A 'buyer agency' contract creates legal fiduciary responsibilities between the buyer and the agent. Those responsibilities include:

• loyalty to the buyer's interests,
• obedience to the buyer's legal wishes,
• disclosure of material information,
• confidentiality,
• reasonable care and diligence,
• accounting on all matters,
• objective presentation of all offers,
• disclosure of material adverse facts, and
• fair and honest treatment.

BENEFITS A BUYER AGENT CAN PROVIDE

A buyer agent can negotiate on behalf of the buyer to work towards finding the right property, and obtaining the price and terms that are in the best interests of the buyer.

A buyer agent is not limited to showing properties only listed in Multiple Listing Service. The agent can also show 'for sale by owner' properties. This capability increases the selection of homes from which a buyer can choose.

A buyer agent can also seek out unlisted properties on the buyer's behalf.

A buyer agent is obligated to provide complete confidentiality to the buyer's personal motives and financial intentions.

A buyer agent can advise and counsel a buyer with unrestricted assistance, providing assistance as needed.

And lastly, a buyer agent can prepare an estimate of value for the property so that the buyer has the market information they need to make an informed buying decision.

ALL THIS SERVICE....WHAT'S THE COST?

In most cases, the buyer pays no more for the services of a buyer agent that he or she would is using a traditional 'seller's agent.' Commissions or service fees usually come from one of three sources:

(1) Out of the total commission being paid to the listing agent; (2) Or as a reduction in the selling price, equivalent to the buyer agent commission, thus enabling a direct payment from the buyer to the buyer agents broker; (3) Or, negotiated in the offer to purchase as a payment to the buyer agent from the seller on behalf of the buyer.

GOING THE EXTRA MILE WITH BUYERS

Buyers always have questions. When the agent is not a buyer agent, yet working with a buyer, answering questions can be awkward because the agent owes allegiance to the seller. While a traditional 'seller's agent' would usually not withhold important information, a buyer agent has a legal obligation to dig deeper into any situation which might jeopardize the best interests of the buyer.

COMPETITIVE EDGE WHEN PROBLEMS ARISE

If an inspection reveals a problem, a buyer agent can make the difference. Should the buyer still wish to purchase the property, the buyer agent will go to bat for the buyer to negotiate a fair and equitable agreement to the problem.

WHAT ABOUT INVESTMENT VALUE?

A buyer agent can offer a professional opinion as to the value of the property, something a traditional agent would hesitate to do, should the property not offer as promising a future as other properties.

SO WHAT'S THE DIFFERENCE?

Both the buyer agent and a traditional 'seller's agent' can answer questions and handle many of the other aspects of the transaction such as arranging for a property appraisal, a title search, a survey, home inspections, and the closing. Both types of agents will be able to provide a buyer with information on the community to help the buyer make a more informed decision.

The difference is that a traditional agent will work with a buyer, but is required to advocate the seller's best interests.

A buyer agent works for the buyer's best interest, most often, at no additional charge. Only a buyer agent can give a negative opinion or critique of seller's property beyond disclosing known defects. Only a buyer agent can recommend or suggest an offering price, or give you an opinion about whether a particular property is priced too high or too low. Only a buyer agent can structure an offer and draft other provisions with the buyer's best interests in mind.

WHICH WILL IT BE?

You have to make the decision, but is the choice really that difficult? If you need more information on this subject, call us. If you have any questions, call me. And, when you're ready to get your own buyer's agent, call me.