Copyright 2006 -
Why you need a buyer’s agent
The act of buying a property, be it a house or vacant land or an investment property, involves a process that is full of potential pitfalls and mistakes. Over 90% of the time, the seller will already be represented by an agent who is there to take care of the sellers’ interests, not yours. If you engage in this process without and agent of your own, it would be like going to court in a civil lawsuit without a lawyer of your own.
In that case, you wouldn’t believe that the other guy’s lawyer would be happy to help you present your case too, would you? In the real estate process, the agent for each party has a fiduciary responsibility to that party. The sellers’ agent’s job is to get the best deal he/she can for the seller, not to make sure that you get a good deal as the buyer. This doesn’t mean that a sellers’ agent is out to do you any harm, just that their loyalty is to the person with whom they have a contract – the seller.
The way that you even the playing field in the real estate process is to have an agent of your own – a buyers’ agent. There is a contract for that, too, which gives the agent the exclusive right to represent you to any and all sellers (even For Sale By Owner (FSBO) sellers). Having a Buyers Agent contract means that you now have someone representing you who owes you his or her fiduciary responsibility, someone who will be working to get you the best deal.
Having a buyers’ agent contract does not change where the commission monies come from, – normally the seller still pays all of the commission – unless the buyer buys a house from a FSBO seller who refuses to pay any commission. In that case the contract normally obligates the buyer to pay the commission of the buyers’ agent. In the unlikely case of that occurring, you will have likely saved enough by having a real estate professional do the negotiating for you that you will be able to pay the agents’ commission out of the savings.
Some Buyers’ Agent contracts have a provision for a fee to be charged, should you decide not to buy and wish to terminate the contract. That provision is there to help the agent recover something for the time that he/she may have put in to the effort top find you a property. Most agents will waive that provision, up front, if they are convinced that you are a serious buyer. Check that out and be sure you understand what your obligations are before you sign any contract.
In addition to helping you through the real estate buying process, having a buyers’ agent also can save you a tremendous amount of wasted time and effort. The buyers’ agent has access to all of the real estate data for listings, public records about the properties and tools to help evaluate the market value of a property. Once your buyers’ agent gets comfortable with what you want in a property, he/she will be able to help you avoid wasting time running around to properties that just wouldn’t fit for you.
It normally takes 2-3 times out looking before your preferences become obvious enough to the agent to be able to avoid properties that won’t fit. The time needed to reach that comfort level can be cut by being as open and honest as you can be about your needs and desires with the agent when you set up the contract.
Both buyers and sellers are subject to a number of post contract pitfalls. Having agents involved gives you the advantage of having someone whose job it is to make sure that these pitfalls don’t occur in your sale.
Go to Real Estate Agency and You to better understand the concept of real estate agency.
The way that you even the playing field in the real estate process is to have an agent of your own – a buyers’ agent. There is a contract for that, too, which gives the agent the exclusive right to represent you to any and all sellers (even For Sale By Owner (FSBO) sellers). Having a Buyers Agent contract means that you now have someone representing you who owes you his or her fiduciary responsibility, someone who will be working to get you the best deal.
Having a buyers’ agent contract does not change where the commission monies come from, – normally the seller still pays all of the commission – unless the buyer buys a house from a FSBO seller who refuses to pay any commission. In that case the contract normally obligates the buyer to pay the commission of the buyers’ agent. In the unlikely case of that occurring, you will have likely saved enough by having a real estate professional do the negotiating for you that you will be able to pay the agents’ commission out of the savings.
Some Buyers’ Agent contracts have a provision for a fee to be charged, should you decide not to buy and wish to terminate the contract. That provision is there to help the agent recover something for the time that he/she may have put in to the effort top find you a property. Most agents will waive that provision, up front, if they are convinced that you are a serious buyer. Check that out and be sure you understand what your obligations are before you sign any contract.
In addition to helping you through the real estate buying process, having a buyers’ agent also can save you a tremendous amount of wasted time and effort. The buyers’ agent has access to all of the real estate data for listings, public records about the properties and tools to help evaluate the market value of a property. Once your buyers’ agent gets comfortable with what you want in a property, he/she will be able to help you avoid wasting time running around to properties that just wouldn’t fit for you.
It normally takes 2-
Both buyers and sellers are subject to a number of post contract pitfalls. Having agents involved gives you the advantage of having someone whose job it is to make sure that these pitfalls don’t occur in your sale.
Go to Real Estate Agency and You to better understand the concept of real estate agency.
