WHAT EXACTLY IS BUYER REPRESENTATION?
Buyer representation or Agency simply means a contractual relationship between the buyer and his or her agent in the finding and purchase of their home. While fairly new , Buyer Representation is becoming well established and embraced all across the country.
HOW DOES IT WORK?
In every Real Estate transaction there are two sides, the seller's side and the buyer's side. As an agent, I always represent someone's interest. That someone is the party with whom there is a contract. So, unless I have a contract with you, the buyer, no matter how friendly we become, my loyalty and fiduciary responsibilities must be to the only party with whom there is a contract - THE SELLER!
As a Buyer's Agent, I sign a contract with you, the buyer. I can then put YOUR interest first, negotiate on your behalf, and use my best efforts in helping you find the home you want at the price you're willing to pay.
WHAT ARE THE BENEFITS TO THE BUYER?
With either type of agency, I am required to treat you with honesty and fairness, to assist you in selecting a property, and to disclose to you any known material defects in the properties that I show you. But ethically, as the seller's agent I must tell you, the buyer, not to say anything to me that you would not say directly to the seller. I am limited to the service that I can provide for you due to my contractual loyalty to the seller.
However, as your buyer agent, I can give you my loyalty, and there is confidentiality. I am working in your interest. As your agent, you can level with me. I become your negotiating and facilitating teammate throughout the entire process.
WHAT ARE THE DISADVANTAGES TO THE BUYER?
Arguably, none, but there is a contractual responsibility. As your representative, I am working in YOUR interest. But just as a seller has a contract to sell through his/her agent even if he finds his/her own buyer, you as a buyer client, have a contractual responsibility to buy your home through me during the time the contract covers, even if you find a property on your own.
IS IT IN THE SELLER'S INTEREST TO WORK WITH BUYER AGENTS?
Absolutely! Working with Buyer Agents provides the home seller with maximum exposure of their home, highly motivated and qualified buyers, and no liability for a sub-agent's actions or misrepresentations to the buyer.
WILL IT COST ME EXTRA TO HAVE MY OWN REPRESENTATION AS A BUYER?
I never say never, but for the most part, NO! Although signing a buyer contract makes the buyer responsible for his/her agent's fee, 99 times out of 100, this fee (as well as that of the seller's agent) comes out of the proceeds of the sale. (Remember, both the Buyer and the Seller pay for Real Estate Services when a transaction takes place-don't let anyone tell you otherwise). Keep in mind, that I can advise you on how to structure your offer in the event that the seller is unwilling to allow the proceeds to be used to pay my fee.
Rest assured, that when you work with me as your agent, you will not be caught unaware or have to pay twice for the same service.
MORE QUESTIONS? CONFUSED?
You're not alone! Buyer Agency is a topic that is often misunderstood. As a consumer, it's important to know the facts and the options available to you. So, please don't hesitate to call me with any questions at all.
Remember, when you're sick you consult a doctor...
And when you need legal advice, you consult an attorney.
So, when you're looking to make your largest investment doesn't it make sense to have a Realtor working for YOU?
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