Choosing a Buyer's Agent
What is a Real Estate Buyer's Agent?
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 buyer's agent works for the buyer client and has the client's best interests in mind throughout the entire real estate transaction process.
The buyer's agent is compensated by the buyer through a negotiated fee, or in some states the commission is split between the buyer's and seller's agents based on the selling price of the real estate property. It is important for the consumer to discuss the buyer agent's compensation in the initial interview. 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. It is important to note that in some states, legislation has been enacted to protect the buyer to the point that absent a written agreement the agent represents the buyer throughout the real estate transaction. Consult your local REALTORŪ for complete details when you first start the search for purchasing any real estate property.
Why Use a Buyer's Agent?
As a consumer, how often do you buy real estate property? Once, twice, three times in your lifetime? Purchasing real estate is a complex and major transaction with many details to be handled. In the majority of cases the seller will be represented by an agent. Wouldn't you want to have complete and fair representation in the real estate transaction?
The real estate buyer's agent is responsible to protect their clients' best interests. Research by the NATIONAL ASSOCIATION OF REALTORS® has shown that when a buyer agent is used, the prospective buyer found their home one week faster and examined three more properties than those consumers who did not use a buyer's agent.
The Benefits of Using a Buyer's Agent
A buyer's representative will:
- 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 appropriate properties in that price range.
- Assist in viewing properties — accompanying the buyer on the showings, or previewing the properties on behalf of the buyer to insure that the identified specifications are met.
- Research the selected properties to identify any problems or issues to help the buyer make an informed decision prior to making an offer to purchase the property.
- Advise the buyer on structuring an appropriate offer to purchase the selected property.
- Present the offer to the seller's agent and/or the seller on the buyer's behalf.
- Negotiate on behalf of the buyer to help obtain the identified property — keeping the buyer's best interests in mind.
- Review and explain all legal documents to the buyer.
- Assist in securing appropriate financing for the selected property.
- Provide a list of potential qualified vendors (e.g. movers, attorneys, carpenters, etc.) if these services are needed.
- Most importantly — FULLY represent the buyer throughout the entire real estate transaction.
