If you are in the market for buying a home, working with an agent can be very beneficial.
There are two types of relationships you can have with a Buyer’s Agent. Both relationships will provide you with information and access to homes listed for sale on the market. Both relationships will assist you with drafting your purchase offer and attending to the many tasks required to get a home purchase from contract to closing. Buyers should decide if they prefer a “formal or informal” relationship with a Realtor.
An informal relationship with a Realtor allows a Buyer to seek the assistance of one or more Real Estate professionals, owing allegiance to none in exchange for unbiased information and access to property listings. This type of relationship is often misunderstood by a Buyer who believes that the real estate professional is working for them. In fact, without a written agreement outlining the relationship between a Buyer and an Agent, the Agent is actually working for the Seller as a “Sub-Agent” of the listing Realtor. Without a formal agreement with your “Buyer’s Agent” your interests are not represented and your Agent must remain a neutral party in the purchasing process.
A formal relationship with a Realtor is created by signing a Buyer’s Agent Agreement that protects each party and outlines their duties and obligations. A Buyer’s Agent Agreement allows a Realtor to; Advocate for, Offer professional opinions and work on behalf of the Buyer with the sole purpose of obtaining the best price and terms for the Buyer. When you have a formal agreement with a Buyer’s Agent, the Agent’s fiduciary duty is to the Buyer, not the Seller.
What many Buyers don’t know…
Most Buyers assume that it costs them money to work with a Buyer’s Agent Agreement. This is a common misconception. The vast majority of homes and commercial property listed in the Multiple Listing Service specify that the Seller will still compensate a Buyer’s Broker for bringing an acceptable offer to purchase their property. Think about it… If you were a Seller and you expected to pay a certain amount of expenses to get your home sold, wouldn’t you want every potential buyer to have an opportunity to purchase your home? The difference is, that instead of the typical sale where the Seller is represented by a broker and the Buyer “thinks” he is represented by a broker, the two parties actually have “Individual Representation” (someone in THEIR corner), working specifically for each parties individual interest.
At the closing table, the Buyer’s Agent portion of the sale commission is paid for by the Seller. All parties are aware of each other’s representation and each Agent negotiates the purchase for the benefit of their customer. It is acutally a more “upfront” way to do business. The only downside for a Buyer is the potential situation where, for whatever reason, the chemistry or professional relationship between the Buyer and his or her Agent is not a match. On a rare occasion where the parties feel that the written relationship is not a good fit, then the Agent Agreement must be formally canceled to allow both parties to “move on”.
Talk to one of our Associates about Buyer Representation. Ask questions about how we can help you find a home or investment property that meets your needs. Give yourself the benefit of professional representation for the same cost as non-representation. It just makes sense in today’s challenging Real Estate market to have an advocate in your corner working for your best interest.