WHY BUYER AGENCY?
The Realtors Job: “Seller Agency” Versus “Buyer Agency”
As a buyer if you work with a real estate agent without a buyer broker contract that agent is working as a seller’s agent. Their only required duties to you as a seller’s agent are to treat you honestly, to disclose to you any known material defects of the home, and to disclose to you that he represents the seller. The agent’s job is to sell you a home at the best price and terms for the seller. As a home buyer you are simply a customer.
With a buyer agency relationship the home buyer is the client, not just a customer. The agent acts in your best interest at all times in order to help you purchase a home at the best price and terms for you! As a client you are not being SOLD a home, you have hired a professional to help you purchase a home. The agent is not working as a salesperson but rather a consultant.
The Top Four FEATURES of Buyer Representation and the BENEFITS to you the Buyer
1. As your agent, I can expand your marketplace by showing and potentially helping you buy not only the listed homes available, but also homes sold directly by the sellers, and homes not even actively on the market.
“The widest selection of homes will benefit you because you will be able to choose the home which best suits your needs and your pocketbook instead of settling for one that will do.”
2. As your agent, I can be completely honest with you about my opinions on condition, pricing, or any other aspects affecting your decision to buy or not to buy.
“This can help you save both time and money, AND potentially save you from making a very bad decision.”
3. As your agent, I am legally and morally obligated to give you the best advice and service I can render. I have a duty of absolute loyalty to your best interests.
“The first benefit to you is the piece of mind you have, knowing that someone is watching out for your best interests. Secondly, you know you will be protected in all contract negotiations, which means the contract will be drafted in a way to serve you and give you the control and flexibility you want and need.”
4. As your agent, I can negotiate for you, which can mean that I can insulate you from revealing just how much you want to buy the home in question, while trying to discover just how badly the seller wants and needs to sell.
“This can put you at an incredible advantage in the negotiating process, which can help you secure the terms you really want, at the price you really want.”
Buyer’s Agent’s Investment
As your buyer’s agent I will be making an investment in you. I will be investing my: TIME, ENERGY, EFFORT, and MONEY.
Buyer’s Obligations
Be honest about what you are looking for, your financial position, and serious about buying.
Buyer’s Investment
Most buyers like the idea of having a real estate agent actually working for them but feel that this type of service might be too expensive. However, in a typical example a brokerage commission is incorporated into the sales price whether you have a buyer brokerage contract or not. See the following example.
Let’s assume you purchase a home for the price of $100,000. What that typically means is that you are paying the seller $94,000 and $6000 is being paid by the seller to the brokers involved for the work of the real estate agents for the total of $100,000.
Under buyers’ brokerage you would pay the same $100,000 for the home. Just like before $94,000 would go to the seller and $6000 would go to the two real estate companies involved. The difference is that under buyers’ brokerage a share of the $6000 that you’re paying is going to someone who is representing you and looking out for your best interest.
A much better deal for the buyer, don’t you agree?
Top 10 Questions to Consider When Deciding Whether To Use a Buyer’s Agent
1. If we saw a home today, and I felt it was $10,000 overpriced, would you want me to tell you?
2. If we saw a different home and I knew it had been on the market for over two years with three different companies, would you want me to tell you?
3. Do you want to only be exposed to the listed properties, or would you prefer to have the chance to see the entire available market?
4. If we see a home in which you are interested, if I honestly felt it was the wrong choice for you, would you want me to tell you?
5. Would like my negotiating skills and expertise working for your best interests, or should I use them for the seller’s best interest?
6. Would you like to commit to one agent who is morally and legally bound to work to fulfill your needs, and who will work hard to listen to you to help find homes that meet those needs, or would you prefer to explain your needs over and over again, only to have agents pull up the same houses to look at?
7. Seeing as how your sales price is going towards paying the commission in this transaction, would you want that commission going towards two people who both work for the seller, or would you rather have the commission split between two agents, one whom works for you and the other one who works for the seller?
8. If you are working with an agent and he finds out about a home that would be great for you, but would also be great for two other buyers that he is working with, would you like to be called first, second, third, or would you like to be the only one he calls?
9. If you are moving into a new area and you knew nothing about values or drive times or property appreciation, would you like to have someone who will give you advice and helpful statistics, or would you prefer to take a chance and possibly buy a house in an area you would never consider, if you knew your way around?
10. Would you like to use the standard contingencies in the Offer to Purchase, which have been drafted to benefit the seller’s best interests, or would you prefer to have a real estate professional to help you draft contingencies to benefit your best interests?