Introduction
When it comes to buying a home, you are not only making a lifestyle decision, but also a significant financial commitment. Therefore it is prudent that you seek the assistance of a competent real estate professional. When selecting me to assist you in your purchase, you can rest assured that you are represented by a professional who is working diligently to see that every detail of this important transaction is properly handled.
I stick with my buyers until the right home is found and purchased. I believe in committed representation of my clients. As a buyer you have the right to know that your agent will be representing your interests without exception. As a matter of principal, when working with buyers, I only work as an exclusive Buyer’s Agent which means that you have someone working for you, not for the seller.
What is Buyer Agency?
Until the 1990’s, unbeknownst to most home buyers, the common law of most U.S. states obliged real estate agents to represent the owners of the houses they were showing. Consequently, even if an Agent became friends with their prospective purchasers, they were required by the Laws of Agency to reveal any information they obtained from the purchaser to the seller of the home on which they were making an offer. If they did not, they were violating the law.
Purchasers were considered to be “customers,” and although they were usually treated fairly and honestly, they were at a disadvantage when it came to negotiating price and terms of the real estate transaction. Legally the selling Agent could not suggest an offering price other than the asking price, nor could they point out negative aspects or deficiencies of the property to the prospective buyer. Even if an agent had the best intentions, the law tied their hands.
The efforts of consumer advocates have brought about a dramatic change in the representation of home purchasers in the real estate transaction. In the early 1990s various states passed statutes to create buyers’ agency. Now purchasers have the option of being specifically represented by a Buyer Agent who will work diligently and in the best interest of the buyer, in every aspect of the real estate purchase transaction.
The only exception is when the Agent already represents the seller of the home being shown. The law allows a real estate agent to represent both the buyer and seller in a transaction and become a Dual Agent. I perceive this to be a conflict of interest. I believe that all buyers should be represented by their own agent and that is why my policy is to not operate as a Dual Agent.
Buyer Agency is common these days. I have never come across a transaction where the buyer did not work with a buyer’s agent. Interestingly, many buyers are not aware of, and do not understand, the benefits of buyer agency until they are already involved in the transaction.
Buyer Agency Requirements
State laws require that the Realtor/Client relationship is clearly defined and in writing, upon the first substantive discussion about home buying.
Having a Buyer Agent represent you, instead of the seller, by law requires a signed agreement obligating the Agent to work diligently for you to find a property and to negotiate the best possible terms of sale; that contract also contains your agreement to work exclusively through that Agent for a specified length of time.
The agreement protects both you, the consumer, and the Agent. You will be able to read over the agreement and discuss the implications before signing it.
As a matter of policy, in order to remove any conflicts of interest, when working with buyers I work only as a Buyer’s Agent exclusively representing the buyer’s interests. In the buyer agency agreement I always include an option for either party to terminate the agreement if they are not happy with each other.
Compensation
In a buyer agent relationship, even though the agent represents the buyer, the agent is compensated by the seller’s agent. As a result, buyers receive committed representation without any cost to them.
Why should I work with a Buyer’s Agent?
The answer is simple. When hiring me as your buyer’s agent, you are benefiting from years of education, training, and experience. Why set out to make what is possibly your single largest personal purchase without the assistance and counseling of a proven professional? Would you consider walking into court without your attorney? Filing your tax returns without your accountant? I know I don’t. When I have legal questions I call my attorney. When I need tax help I call my accountant. And when I bought property in a different state, I hired a local buyer’s agent.
Contract negotiations and terms can sometimes overwhelm and frustrate even an experienced home buyer, but, as your buyer agent, my obligations include making sure you are educated and well versed throughout the process. Furthermore, unless it is otherwise stipulated, the buyer brokerage fee is already included in the sales price so you are, in essence, able to hire me with no extra financial obligation.
I recommend an initial meeting to determine if I am a good ‘fit’ for your lifestyle and needs. A relationship that includes trust and respect will move you into your dream home with the ease and reliability you deserve. Please contact me for an informal chat.
