Buyers Agent

In 1983, a Federal Trade Commission study revealed that over 72% of all home buyers nationwide mistakenly believed they were being represented by the agent who was showing them homes. As a result, laws requiring agents to disclose exactly who they represent have been passed all over the country. When consumers became aware that most agents worked for the seller, they began demanding their own representation. In response, The Buyer's Agent ^sm, Inc. began offering buyer representation to home buyers.

So, before we cover this "new" type of agency that offers the buyer representation, let's cover the different types of agencies that are out there.

EXCLUSIVE BUYER'S AGENT

An Exclusive Buyer's Agent is legally obligated to represent the Buyer's interest and must do the following for the Buyer:

• Negotiate the lowest price & most favorable terms
• Offer reasons not to buy, point out property flaws
• Disclose all information about the Seller and the Seller's property that may benefit the Buyer
• Perform Comparative Market Analysis and render opinions of value.

more on buyer's agency

SELLER'S AGENT

Also known as "Listing Agent" or "Traditional Agent." This agent has listed a home for sale and represents the Seller. This agent is legally obligated to represent the Seller's interest and must do the following for the Seller:

• Negotiate the highest possible price & most favorable terms
• Keep any information that would benefit a Buyer's position confidential
• Disclose to the Seller all information about a Buyer that would benefit the Seller
  

Dual Agent or Limited Agent

This is an agent who practices what is known as "Disclosed Dual Agency"…an agent who represents both the Buyer and the Seller in the same real estate transaction. Sound controversial? It is…but it is legal in many states with informed consent of all parties.

No Agent

Buyers are not required to work with a real estate agent. You may contact For Sale By Owners directly if you wish, with the understanding that neither you nor the Seller are represented…you are "on your own." For listed properties, you are obligated to contact the company that has the home listed to obtain information or to see the property. Under these circumstances, you will be working with a "Seller's Agent" - (see "Seller's Agent" above).

As stated above, I believe it is extremely important that you understand the significant differences in practice among agents and agencies, and what their company policies are. Only then can you make an informed decision about selecting an agent with whom to work. Please open the door "Agent Interview" to find a list of questions that you should ask any real estate agent you may consider hiring or working with.

More on Buyer's Agency

Many agents today are casual about Buyer agency and, in essence, could be considered "casual buyer's agents." While they don't conduct themselves "unprofessionally," they don't really get it when it comes to true representation of Buyer clients. Many agents get their ABR or CBR designations and use these designations along with the "concept" of Buyer agency as a means to sell more homes. "True" Buyer representation takes much more!

• The proper mindset; a true Buyer's Agent helps people buy homes and acts as a consultant, advisor, counselor, and advocate. A true Buyer's Agent doesn't "sell" homes or act like a "salesperson."
  
• Different terminology; "buying" not "selling," "procuring homes for buyers" not "procuring buyers for sellers," "viewing homes" not "showing homes."
  
• Greater responsibility and liability; a true Buyer's Agent takes on considerably more responsibility and liability than an agent listing a property…the buck stops with the true Buyer's Agent!
  
• Due diligence; a true professional Buyer's Agent recognizes his or her obligation to perform due diligence. A casual Buyer's Agent frequently has no idea what due diligence is, or how ignoring due diligence can immeasurably hurt Buyers.
  
• Agency; a true Buyer's Agent takes very seriously the agency and fiduciary duties that are required by the common law of agency.
  
• Conflicts of interest; a true Buyer's Agent understands this concept. When faced with a conflict of interest, a true Buyer's Agent will tell you immediately and should refer you to someone else to eliminate the conflict and ensure that you continue to receive proper representation. That is the true nature of a "True" Buyer's Agent.

When you combine the full service and representation that an Buyer's Agent can offer, with the mindset and commitment of a "True" Buyer's Agent, …Bingo! That is the agent you want to hire!

As your Buyer's Agent, I can offer you the following:

• Give you 100% loyalty 100% of the time
• Put your best interests before all others including my own
• Have the endorsement of consumer advocates and the media
• Help you avoid costly mistakes
• Make every effort to save you time and money
• Maintain strict confidentiality

When Searching for a New Home or Land

• Show you properties listed in the Multiple Listing Service, Expired Listings, For Sale By Owners, and even those not currently on the market
• Tell you when a property is over-priced
• Look for reasons not to buy a property
• Perform a Comparative Market Analysis (CMA) on property that you wish to consider buying
• Investigate the property, neighborhood, and the Seller's motive for sale
• Ask the Seller, or Seller's Agent, key questions that they must answer if asked
  

When Negotiating the Offer

• Ensure that proper legal protection is provided to you in the written Purchase & Sale Contract
• Negotiate the lowest possible price for you
• Adjust or modify "standard" clauses in contract forms to favor you
• Validate listing information at town offices
• Relay to you any information that will enhance your bargaining position
• Advise you when to cancel the contract on a property and help you do it without loss
• Recommend competent, honest and professional service providers, i.e., attorney, mortgage lender, home inspection
• inspector, surveyor, accountant, etc.
• Help you renegotiate the contract after the home inspection, if appropriate
  

• Accompany and advise you during the final walk through
• Promote and protect your best interests among needed professionals - 100% of the time
• Accompany you to closing and review the HUD Settlement Statement for accuracy
• Monitor the closing on your behalf
• Help you with concerns after closing.