Buyer Agency
Learn how a Buyer's Broker/Agent can benefit you.
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What is a Buyer's Broker?
A Buyer's Broker is one who gives the Buyer's interest exclusive
representation. Typically an Agent (or Broker) represents the interest of the Seller, no
matter who retains their services. That is the law, the Agent owes their allegiance to the
Seller. This is not so with a Buyer's Broker. The Buyer's Broker owes no allegiance
to the Seller. This is the fundamental difference between traditional Real Estate
Representation and Buyer's Brokerage.
Why a Buyer's Broker?
With a traditional Seller's agent you are a customer, with a Buyer's Broker you are a CLIENT. Let's examine the difference between the two.
| Traditional Agent | Buyer's Agent |
| Can show you all the properties in the MLS (multiple listing service), as well as other properties they MAY be aware of. | Will show you all the properties in the MLS as well as For Sale By Owner Properties, foreclosures, Bank Owned Properties, even properties not on the market! |
| Can tell you the price the Sellers are asking for homes but cannot suggest an offering price. | Will tell you the price the Sellers are asking for homes; will calculate the fair market value of the home for you, and assist you in determining an offering price and negotiating strategy. |
| Can convey your offer to the Seller or their Agent and convey their response to you. | Will assist you throughout the negotiation process offering advice and information every step of the way. |
| Can provide you with a "list" of title companies, home inspectors and other professionals for you to choose from. | Will recommend title companies, and other professionals who provide services you will need. |
| Can tell you some general information about the Seller. | Will tell you everything they can find out about the seller and their motivation for selling. |
| Must tell the Seller everything they know about you, your financial status, and your motivation for buying. | Will keep any information about you CONFIDENTIAL. |
| "Thinks" in Seller's terms-get the highest possible price for the property. | "Thinks" in Buyer's terms- get the lowest possible price and best terms for the Buyer. |
Who Benefits from Buyer Agency Representation?
Every Buyer is different, and though anyone buying property would benefit from Buyer Agency Representation, some Buyers have a greater need for this service. Who are these Buyers?
- Out of Town Buyers- Information about property prices and other issues where the Buyer needs an advocate can be a routine part of the exchange between Buyer and Agent. For this reason out-of-town Buyers benefit from having Buyer Agency Representation.
- First Time Buyers- Due to their lack of experience with the home buying process, first time Buyers can often benefit greatly from having an Agent represent their interests. A Buyer's Agent assists first time Buyers by helping them identify and evaluate the choices available to them. Additionally, first time Buyers can make more informed decisions regarding price and terms of their offer to purchase by relying on their Agent's knowledge and experience.
- Anonymous Buyers-One of the benefits of Buyer representation is that a Buyer can choose to remain anonymous in the transaction. In these situations a Buyer MUST be represented as a Buyer Client.
- Agents Purchasing for Their Own Account-Any Agent who purchases a property MUST do so as a buyer client.
Obligations of the Buyer Agent
In the Buyer Agent-Client relationship, the Buyer Agent owes the following obligations to the Buyer.
Loyalty- The Agent must place the interests of the Client ahead of anyone else, including the Agent.
Full Disclosure-Client must receive all information known to their Agent that will assist them in the transaction.
Confidentiality-Information about a Client that could be beneficial to the other party to the transaction and detrimental to the Client cannot be divulged by the Agent. The responsibility to keep Client information in confidence goes beyond the bounds of the real estate transaction as well. Agents cannot share confidential information with anyone, even if that person is not involved in the transaction.
Any information received in a client level relationship must be preserved, even after the relationship is terminated.Reasonable Care and Diligence- Buyer Agents have the same responsibility of diligence to Buyers that Seller Agents owe to Sellers. The duty of reasonable care requires that an Agent perform all functions required within the scope of his or her real estate license.
Obedience- An Agent is required to follow all lawful instructions of the Client.
Accountability- All funds and documents entrusted to the Agent on the Client's behalf must be accounted for by the Agent.
As a homebuyer, shouldn't you be benefiting from Buyer Agency Representation?
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