 Buying a home is probably the most important
purchase you will ever make. Do you want to handle
it alone? Until a few years ago, home buyers had no
choice. They decided upon a home to buy and
negotiated the contract without representation.
 What Is A Buyers Agent?
Traditionally, all residential real estate agents
represented the home seller. This was true of the
“listing agent” who put the home up for sale, as
well as the agent who found the buyer. The agent,
who helped the buyer find the right home, actually
worked for the seller as a “subagent” of the listing
agent. Under that traditional system, all agents
were legally bound to represent the seller, and the
buyer had no representation.
Now Buyers Have A Choice
Buyers no longer need to represent themselves during
the home search and purchase. Smart home buyers
today can receive undivided confidential
representation by choosing a “buyer’s agent.” In
fact, 71% of home buyers surveyed in a recent Gallup
Poll for the National Association of Realtors said
they would use a buyer’s agent next time they
purchased. At last, you don’t have to buy a home
alone. Now you, like the seller, can have someone on
your side looking after your best interests.
What will Buyer’s
Representation cost me?
Perhaps the right question is, “What will it cost me
if I don’t use a buyer’s agent?” Purchasing a home
without representation is possibly the biggest
financial mistake you can make. A buyer’s agent can
guide you each step of the way to prevent costly
errors. Failure to find out about defects in the
property or the actual value of the property can
certainly be an expensive mistake. Failure to
negotiate a contract that works for you can cost you
money as well as time. With a buyer’s agent, you can
ask for and receive advice and assistance in
selecting the best property and determining an
offering price.
Who pay’s the Buyer’s
Representation fees?
Surveys show in most instances buyer’s agents are
paid like seller’s subagents; that is, buyer’s
agents generally receive a share of the sales
commission built into the list price. All listings
in MLS will indicate how a commission will be paid.
Remember, the question you really need to ask
yourself is: “Can I afford to buy a home without a
buyer’s agent?” For most home buyers today, the
answer is “NO”!
How can a Buyer’s
Representation help me?
Buyer’s agents owe certain duties to their home
buyers, such as care, confidentiality, full
disclosure and accurate accounting. State laws
define these responsibilities, the REALTORS Code of
Ethics, general principles of agency and court
decisions. That’s the legal definition. But what
does a buyer’s agent actually do for the homebuyer?
Like other agents, a buyer’s agent will show the
buyer available homes, point out the property’s
features, provide financing information and submit
the offer to purchase.
Can a Seller’s agent or subagent help me?
Without a buyer’s agent, you’re really on your own.
Keep in mind, the seller’s agent or subagent is
actually working for the seller and is the seller’s
legal representative. Yes, a seller’s agent or
subagent can offer buyers some services, including a
diligent search to find the right home, an
explanation of available financing, calculation of
monthly payments, estimation of settlement costs,
and presentation of your offer to buy.
What a seller’s agent cannot do is disclose
information not in the best interest of the seller,
such as an opinion of the home’s real value or what
price and terms the seller would accept. By law, the
seller’s agent or subagent must negotiate on behalf
of the seller and may not withhold from the seller
information that could strengthen their bargaining
position. That means you, as a buyer, should be
careful not to disclose to the seller’s agent or
subagent any financial or personal information that
could be used against you.
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