When buying a home, you have a choice: your agent can work for the Seller or your agent can work for you. A buyer's agent is an agent who is engaged by a buyer to represent the buyer's best interests, not the seller's. A buyer's agent works exclusively on behalf of the buyer-client in any given real estate transaction. Only a buyer's agent can represent and work 100% for the interest of the buyer and yet most buyers refuse to sign a buyer's agent agreement.
Being represented by a buyer's agent won't cost you more in commission fees and it could actually save you time, money and aggravation. A buyer-client usually pays no more for the services of a buyer-agent than he/she would if using a traditional real estate agent. Typically a buyer's agent receives compensation from the seller's proceeds of the sale, the same way a seller's agent or broker's agent would.
The buyer's agent keeps the buyer's personal and financial information in strictest confidence. The buyer's agent negotiates the purchase of a home at a price and on terms acceptable to the buyer. The buyer's agent analyzes market data to determine an appropriate offering price. The buyer's agent makes you aware of negatives and positives of a property. The buyer's agent prepares the sales documents with the buyer's best interests in mind. The buyer's agent shows you all properties - multiple listings, exclusive listings with any Realtor, and For Sale By Owner.
If you are not represented by a buyer's agent, that agent who is taking you around to see properties is working as the seller's agent. You are required by NYS law to sign a Disclosure Form to make you aware that your agent is or is not working for you. A seller's agent must treat you (as the buyer) fairly and can't misrepresent any material facts about the property. A seller's agent must try to get the most money and the best terms for the seller. By law, the seller's agent must tell the seller everything he/she has been able to find out about you. Suppose you want to make an offer of $475,000 but you are willing to go up to $500,000, a seller's agent is bound by law to disclose this information to the seller. A seller could gain the competitive edge in situations like this.
A buyer's agent has the following fiduciary duties to the buyer: remarkable care, undivided loyalty, confidentiality, full disclosure, obedience and duty to account. The obligations of a buyer's agent are also subject to any specific provisions set forth in an agreement between the agent and the buyer. You should be represented by a buyer's agent who will pledge total, undivided loyalty to you.
Copyright © 2011. By Rosalinda Morgan, "The Rose Lady". All rights reserved. *WHAT ARE THE BENEFITS OF HIRING A BUYER'S AGENT?*
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Excellent article in explaining why a buyers agent is an important part of the real estate transaction. I may add that communication between the agents and other team players is also extremely important. Much success in 2011!
We have agency disclosures in CA as well. Had them in FL when I worked there, but now all agents are presumed to be transaction agents (no disclosure required) unless working as a single agent or in a no agency relationship.
Rosalinda, did you know that your background and your header type are the same color. Can't see to navigate away.
Thank you for sharing your thoughts and suggestions on this issue Rosalinda!
Karen - It's weird but in NY, very few buyers use buyer's agent. They think if you are taking them out to see homes, you are working for them even if we let them signed the Disclosure Form stating otherwise.
Vickie - California is very different from NY. My son used to be an agent in California and we talked constantly and compared notes and you do things differently there. We are required in NY to sign the Disclosure form before we show houses. We do not have what you call transaction agent. We have seller's agent, buyer's agent, broker's agent and dual agent.
Vickie - Thanks for pointing that out. I didn't realize it. I have to check it out.
John - It's not easy convincing the buyers to sign the buyer agency agreement. They don't want to get stuck with one agent so they hop from agent to agent looking for homes thinking they can get a better deal. Little do they know the agents are working for the sellers. They did not know they can get better service and full representation if they sign up for buyer's agency agreement.
Rosalinda - as a home inspector I've always enjoyed working with buyers agent. They never ask me to go easy on the report.
Rosalinda, I love working as a buyer's agent or a seller's agent. Being a transaction broker. My clients become like best friends and I strive to represent their best interests as well as to protect them. Something that is hard to do as a transaction broker. Great post,
Thanks for sharing. I find it interesting how agency laws vary in different states. In Colorado, it's very typical to work as a Buyer's Agent.
Suesan - As a seller's agent, we get nervous when we hear certain inspectors because we know they are deal breakers.
Vickie - After working very closely with my clients for months, I also can't help being very friendly with them. I even do some work that is beyond the call of my duty like opening up for the plumber to get the leaking bathroom fixed.
Kathy - I found out that most states practice buyer's agency. Outside of New York City's Metro areas, they do buyer's agency. Upstate NY has buyer's agents but they can't implement it in Long Island for fear that you can get sued. No agents want that.