A buyerâ€™s agent not only represents the buyer, but they assist in finding the perfect property, in the perfect area. They review policies, disclosures, and trends; select the perfect neighborhood, school; have connections to top notch inspectors (beyond the standard), or attorneys if need be; assist with info in relation to mortgage insurance, warranty, repairs; and they will also be able to assist you with awareness regarding any first-time or any other type of buyer programs or discounts a buyer might be eligible for.
There is a lot of controversy surrounding dual agency mainly due to those that think it's "about the money" and that they can "save a 3% commission" by using the seller's agent and not bother with a buyer's agent at all; however thatâ€™s simply not the case as the listing agreement predetermines the commission. (If the seller's agent sells the house, that commission is collected by the selling agent at 100%; however if a buyer's agent sells the house, it is then split between the buyer's agent and the seller's agent.) Some also believe it's an unjust situation if the Realtor happens to be a friend; just as some say dual agency isn't fair in that how can an agent fairly and efficiently represent both parties--and fairly disclose, disclose, disclose.
Realtors really are experienced and very knowledgeable in many areas; they know people in the business, they keep up on trends and laws and they know neighborhoods. They provide on asking home criteria; property and financial history; historical facts; structural info; and can assist with proper instruction pre- and post-sale permit issuesâ€”and, Realtors can get information buyers simply do not have access to, such as accurate CMAâ€™s (comparative market analysis) for proper negotiations. Realtors can inform buyers of price adjustments on the home (from the time it lists to the time the offer is made); they can explain co-relation between tax assessed value and market value; they can introduce the buyer to reliable lenders; and they can evaluate remodels or repairs to the home.
And, Realtors have specialties and niches if youâ€™re looking for a specific type of home (such as an investment vs. a regular purchase); and they have outstanding negotiating techniques that become crucial when it comes time to making an offer--it really does come down to the offer and how it is written. They know the laws and regulations inside and outâ€”or should. And, they can refer reliable, top notch real estate attorneys, or whatever service need you may haveâ€”as their network data base is as incredible as they are.
It really is amazing how much a buyerâ€™s agent does for a buyerâ€”and there are so many things to considerâ€”it really is all about the customer service and professionalism. Let them do the work for youâ€”let them make it painless and as worry-free as possible. It really is like an added protection.
A buyer has absolutely nothing to lose by being represented by a Realtorâ€”and everything to gain.
The only other thing I would recommend is to check to be sure the agent is a Realtor and in good standing with their local real estate board (easily found online); the ones who are generally do keep up on the laws and regulations. National Association of Realtors is a great place to look a Realtor up as well to see if they are in good standing.
I know it doesnâ€™t make the process any easierâ€”buyers and sellers will always have homeworkâ€”but having a good Realtor will alleviate some of the pressure and actually make it more enjoyable.
As I believe the majority of the Realtors here would agreeâ€”I would definitely recommend recruiting a Realtor to represent you on a home purchase.
I wish you the best of luck. Have an absolutely wonderful weekend.
A smile speaks every language ~ Have you had your smile today?
So here's what you do. Get the proposed buyer representation contract from the buyer broker you want to hire. Make sure they are from a smaller company so that you have less chance of running into a dual agency situation. Do not agree to dual agency. Instead, make the broker agree to withdraw from the file if a dual agency arises and allow you to hire another broker.
Next, NEGOTIATE the compensation that is going to be paid to your buyer broker. Most of them simply take whatever the seller broker is offering. Sometimes its 2.5%, sometimes its 4% with a $5000 bonus. If you want your agent to give you objective advice negotiate a fee and then make sure that any extra that is collected through the MLS or otherwise is credited to you (make sure rebates are legal in your state). Not only will you get untainted advice, but you will likely save thousands of dollars - especially if you negotiate a flat fee or something that is lower than what is being offered through the MLS.
Look through the buyer broker contract very carefully with your attorney and look for any added junk fees hidden in the boilerplate. For example, you may find an Administrative Fee or some sort of added commission payable to the broker. This can be anywhere from $100 on up to $400. Strike this from the contract and if your broker doesn't agree, find another one.
Ask your broker how much time he thinks it will take to find you a house and negotiate the deal (with the help of an attorney). If the broker says 40 hours, than do a calculation to figure out how much of an hourly rate your broker will be collecting and make sure it is in line with your expectations.
I'm the executive director of Consumer Advocates in American Real Estate a non-profit charity dedicated to empowering real estate consumers.
Dee Begley, Managing Broker
EXIT Realty Tri State
7920 Dream St
Florence, KY 41042
Please see my blog for more tips ad andvice on making offers.
Buyers are always well advised to seek their own representation to avoid the possibility of a conflict of interest when using the listing agent to support their interests.
Certified Buyer Representative
Senior Real Estate Specialist
Century 21 Princeton Properties
If the buyer is loyal to an agent that is trustworthy and that provides great service to that client, than the buyer is in safe hands for their agent to do their job and get the best possible price for that property for their client.
Some agents are only listing agents and some are only buyers agents, then their are some that do both. In my experience I provide an honest approach to all aspects, when I represent the buyers and the sellers, and when I represent both parties at the same time.
In essence, interview the agent you plan to work with. Ask questions how they conduct their business, what areas they work in, and what kind of information they can give you. You will find out quite fast if they are right for you to work with them, just as how much they will want to work for you. Be honest with that agent, and a good agent will be very honest with you.
If you do not intend to use the listing agent to write the contract and you want to have Buyer representation, it is best to have your Buyers' agent show you the property. It is never a good idea to waste the listing agent's time if you have no intention of using them for the deal. If you ask the listing agent to show you the house, just let them know in advance that you have representation as opposed to doing it after the fact.
Recommend have your own buyers rep
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