Is Buyer Agency Right For You?

As a consumer, how often do you buy real estate property? Twice, three, five times in your lifetime? Purchasing real estate is a complex and major transaction with many details to be handled. In the majority of cases an agent will represent the seller. Wouldn’t you, the buyer, want to have complete and fair representation in the real estate transaction?

A real estate buyer’s agent represents the consumer who is purchasing the property in the real estate transaction. This agent owes full fiduciary responsibilities, duties and loyalty to the real estate buyer. The buyers’ agent works for the buyer client and has the clients’ best interests in mind through out the entire real estate transaction process.

he buyer through a negotiated fee compensates the agent or in some states (as in Vermont) the commission is split between the buyers’ and sellers’ agents based on the selling price of the real estate property and there isn’t usually any out-of-pocket expense for the buyer.

In many cases it is recommended that the consumer and buyer agent agree to the terms of compensation prior to viewing real estate properties and sign a written agreement based on these terms. This agreement should spell out the responsibilities of both parties throughout the real estate transaction.

Using a Buyers Representative offers the consumer many benefits.  

• Evaluate the specific needs and wants of the buyer and locate properties that fit those specifications.

• Assist the buyer in determining the amount that they can afford (pre-qualify) and show properties in that price range and locale the consumer has determined.

• Assist in viewing properties and either accompany the client on the showings or preview the properties on behalf of the client to insure that the identified specifications are met.

• Research the selected properties to identify any problems or issues to help the consumer in making an informed decision prior to making an appropriate offer on the property.

• Advise the client on structuring an appropriate offer to purchase the selected property.

• Present the offer to the sellers’ agent and seller on the clients’ behalf.

• Negotiate on behalf of the buyer client to help obtain the identified property. Keep in mind that the buyer agent will be doing so with their clients’ best interests at heart.

• Review and explain all legal documents to their buyer client.

• Recommendations and assistance in securing appropriate financing for the selected property.

• Provide a list of potential qualified professional e.g. loan officers, attorneys, inspectors, insurance agents, carpenters, movers, etc.

Most importantly, the buyer would know that they are fully represented throughout the real estate transaction.

Frequently Asked Questions regarding Buyer’s Agency

What is a Buyer Agent?
A Buyer Agent is a real estate agent or broker who represents buyer and not the seller. A Buyer Agent has a written agreement with a buyer to act as his or her fiduciary representative in finding, negotiating and buying a new home.

How is that different from other agents who help buyers?
Traditional agents who show you homes represent sellers under a concept known as “broker agency”. That means their loyalty is governed by the various listing agreements on the properties they show you. In essence, they are agents working under the listing agent, who has a fiduciary responsibility to the owner of the property. Broker agent by law cannot “represent” you. They can only show you houses. They work for the seller.

Why should I engage a Buyer Agent?
Because they can do more. Much more. And they can never compromise your interests by passing along information about you to the seller.

A Buyer Agent can:

• Represent you as a true client, not just a customer.

• Show you the entire market, including unlisted properties and provide you with informative property value studies.

• Keep your bargaining and financial position confidential.

• Always promote your best interests and give you price advice.

• Negotiate for you.

• ell you reasons not to buy.

• Pass on professional knowledge that will enhance your position.

• Help you write an offer with only your interests in mind.

• Provide you with anonymity, if desired.

• Research any seller or property and provide you with strategic insight.

If you have additional questions regarding buyer agency or agency relationships with Brenda Jones Real Estate - please don’t hesitate to ask. Contact us.