Benefits of Hiring an Experienced Real Estate Buyer's Agent

Experienced real estate buyer's can provide you with client level services which include understanding your housing needs and provide local knowledge. Theywill educate you to the local real estate market and assist you in evaluating all property for sale as well as providing information necessary to complete a successful transaction.

A real estate agent, unless specifically disclosed otherwise, may represent the seller in a transaction for the sale of a home. It is that agent's fiduciary duty (where their loyalty lies) to protect the seller's position at all times. In this situation, as a home buyer, you are a customer of the real estate agent, not a client. A client relationship is established when you hire a buyer’s agent to represent you in the transaction.

If you determine that you want a real estate agent to be your buyer’s agent, then you may enter into a contractual relationship which specifies the responsibilities of the agent and the buyer. The contract stipulates the terms and conditions of the agreement and in all cases indicates that you represent the buyer and not the seller.

Most states have laws that require a real estate agent to present a disclosure form at the first business opportunity. The purpose of the form is to educate the consumer as to their options when working with an agent in the sale or purchase of property. The disclosure clearly outlines the reality that the agent may represent the seller in a transaction when the consumer is a customer and not a client.

The real estate company has a policy in regards to the services they will offer a consumer. The services may include a facilitator option as well as seller and buyer agency. This information should all be discussed when presented with the disclosure form.

Buyers brokers will educate their clients to the market by furnishing current market area information specific to average sales price and market conditions.Information about property value trends that may influence your decision about a certain area can be an important factor. Once you determine specific properties of interest, buyer’s agents will research historical data for each property, pending sales and total available inventory for that specific neighborhood or location. The key element of the evaluation is provide you with the necessary information to formulate an offer that will be accepted or negotiated to a successful contract.

In preparing the offer, the buyer's agent responsibility is to negotiate a purchase and sales agreement which is satisfactory to their client. Competent buyer brokers will do their best to acquire data that may favorably position your negotiation with the Seller.This may include reasons for selling, potential concessions, or other information that may be to your advantage. As a buyer, your motivation and situation is never disclosed without your consent.

In most cases, the buyer agency fee which is referenced in the contract, is covered by the co-broke fee offered to an agent through the listing Broker. In some cases, the cooperating fee is not sufficient and the buyer may be required to come up with the difference. As a buyer, you always have the option to ask the seller to pay all or a portion of your fees as well as closing costs.

The buyer's broker will also know how to deal with -- or when to avoid -- a property that is for sale by owner (FSBO) as some Sellers will not pay the commission, which then puts the responsibility entirely on the buyer. If the compensation is your responsibility, then you will have to negotiate an acceptable purchase price that allows you to compensate your buyer’s agent.