Buyer Representation – Is It Really Necessary?
Question: Do home buyers need the help of a Buyers Agent?
Answer: You bet ! When buyers work with a real estate professional who is 100% loyal and completely committed to them, chances are that the entire home-buying process will go smoothly and with a higher level of buyer satisfaction.
Question: What is a Buyers Agent?
Answer: A Buyers Agent works solely for you, the buyer, and has no legal or other responsibilities to the seller.* When working with a Buyers Agent, you have the advantage of personal representation, independent counseling, loyalty, confidentiality, and trust. On the other hand, while helping you present an offer and then negotiate and close a transaction, a general real estate agent has certain fiduciary responsibilities to the seller and agent of any property you choose.
*In a case where the property your agent is representing you to purchase is also that agent’s listing, dual agency applies. Talk to your agent for more information.
Question: Can a Buyers Agent show us the same properties?
Answer: Yes, a Buyers Agent can show you any home that is listed in the Realtor's® Multiple Listing Service (MLS), PLUS Real Estate Owned (REO) and For Sale By Owner (FSBO) properties. Additionally, a Buyers Agent can show you builder models to select your own, brand-new properties and unlisted homes.
Question: Will a Buyers Agent disclose information to us?
Answer: Yes indeed. Because a Buyers Agent's fiduciary responsibility is to you, the buyer, he or she can be more forthcoming with any negative aspects about properties that you are investigating for purchase.
Question: Does a Buyers Agent make decisions for us?
Answer: No, absolutely not. As your personal ally, advocating your best interests, a Buyers Agent is obligated to provide you with maximum information about buying a home, each step of the way. That means disclosing specifics about location, property values, offering price, negotiations, counteroffers, contingencies, financing, and the entire closing process. Armed with such vital and detailed information, you’ll be thoroughly prepared to make decisions that are right for you and your family.
(THE best Charlotte home search available - no kidding!)
Debe Maxwell, CRS/Realtor®/Broker
Broker@TheCharlotteScoop.com
Phone (704) 491-3310
Debe,
I am a firm believer in the importance of buyer's representation. I have personally chose to avoid dual agency and both my buyers and sellers appreciate it!
This is without question the best post I've seen about the importance of buyer representation.
Well done Debe!
Debe, it is funny I read a post about the same subject just a day or two ago. Here in Gettysburg they don't use buyer rep docs, We used them in California, things are different depending on where in Pa you practice.
Debe:
Once again, you rocked it! Great post. I hope a lot of potential buyers -- and a lot of other agents, as well, see this post! Flagged for Feature.
Debe, Great post, I hope buyers will take note of their opportunity to be represented by a professional who is on their side. It may be a buyers market but you can get bitten, if no one has your back, front or is on your side.
Debe-
You already know how strongly I feel about the Buyer's Agency Agreement...However, it was good to read your article about the subject! Thanks for taking the time to speak with Gordon...Cherise
Those are some great points you made. I think from the Seller or Builders stand point is advantageous if the buyers doesn't have a Realtor. But who's looking out for lil ol' buyer? No one!
I think more buyers lose out by running around and trying to make deals with the listing agents than by letting their own exclusive agent represent them. Great overview of why they should "hire" someone to work for them for free.
The questions and answers are why I've never understood how an agent can be both a buyer's agent and a seller's agent on the same property. Yes, it's a financially lucrative undertaking, but the conflict of interest just doesn't smell right.
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Debe,
Very nice post and as we all know you are the buyer's agent to have in Charlotte.
Debe we are buyers agents and have a contract to do so with 95% of our clients.
Hi Debe...That is why I do not do Dual Agency. I want to represent my client whether it is the seller or the buyer. There is no way I can do that for both. Buyer's should have a buyer's rep working solely for them.
Kate
Debe,
And still people would call me on my listing and then ask: "What else do you have?" And when I tell them that I have everything in MLS, they tend to leave and try to engage the listing agents only.
No matter what you explain, they still want to find a listing agent.
But with the way we are busy now, it does not really bother me.
Hi Debe... this is a great guide to buyers representation! Right on the money!
Debe,
You are spot on, with this post. A buyer without the representation of a buyers' agent is comparable to a defendant in a criminal case without a defense attorney.
Great post Debe, many folks just don't understand how agents work. This should help explain it a bit.
Most do not understand that the buyer's agent works "for them" throughout the process. Getting the word out about what a BA does and whopays the Buyer Agent is important.
Good morning Debe,
This is a great article on Buyer Agency. I cover this completely with my buyers in the beginning so they understand how we work. In Texas we cannot operate in Dual Agency but in Intermediary. Since I do carry a number of listings I go over the importance of my buyers understanding what it would mean if they decided to purchase one of my listings from me. They must give me permission through a Buyer Agency Agreement which I have them sign in the very beginning. I rarely operate in Intermediary and only when I feel both parties are comfortable. I once represented two attorney's (Buyer and Seller). It was the smoothest transaction I've handled!
Terrific rundown as always Sis ! ... It still amazes me how many times I run into buyers who will only work with the seller ! Oh well, I will send them to this blog from now on :o)
Cheers !
Wow, I seem to be one step behind Sheldon tonight!
Great post, Debe - I am definitely re-blogging this one!
Hi Everyone! I've had a terribly busy week and have not had a chance to respond to each of you but, I do appreciate your comments more than you know! The issue of shopping buyers is getting some into big trouble with hidden defects and it's SO important for the consumer to understand the incredible value that buyer's agents provide--and our service is FREE to them!
Most of the general public don't realize that the listing agreement has terms that state what the firm's payment will be and think that they're getting a better deal using one person. They don't understand that the seller and the listing agent have an established relationship and don't know to what depths either. This is not a good scenario for a buyer.
Thanks again for your comments and I hope you all have a fabulous weekend! OH, and Cherise--it was MY pleasure! One of these days we'll get to chat too!