Why Should I Hire a Buyer's Agent?

In most states, state law requires that the real estate agent present the consumer with a "Mandatory Disclosure Form" which is presented at the first business opportunity. This form should be presented prior to any discussion of confidential information.

The purpose of the form is to disclose options available to a consumer under the State real estate laws. In most cases, the form points out the difference between customer and client level services as well as non-agency (facilitator). In some states, transactional agents is also an option. The form is not a contract and requires that the agent presenting the disclosure, disclose (in writing) their current relationship to you and/or the Seller in this business interaction.

Sellers have always had a right to representation, and in most states buyers have that same right through buyer agency. By selecting an Exclusive Buyer Agency, your agent has a legal fiduciary responsibility to you: confidentiality, care, obedience, accounting, loyalty, diligence, and disclosure. Your Buyer’s Agent will guide you through every step of the home buying process, providing critical information and applying his/her skill, knowledge, and experience to ensure that your best interests are protected at all times.

If you do not have representation then you are a customer of the agent working with you. Buyer agency is a client level service which may require a written agreement to stipulate the terms and conditions of the contract. 

The Listing Broker of the property normally offers to compensate the Buyer’s Agent (amount of compensation noted in advance in the MLS listing). That compensation is paid from the proceeds of the sale and is credited towards the fee referenced in your agreement. When a fee is not offered by the listing broker, your agent will discuss your options with you prior to showing you the property. You may have the responsibility of negotiating with the Seller to pay the fee or pay it yourself.  A professional Realtor will provide proper disclosure required by law and recommend you contact an attorney if you seek legal advice.

The primary benefits to hiring a Buyer agent are:

1. Exposure to the entire market - includes FSBO (For Sale by Owner).
2. Research of the property and neighborhood housing data.
3. Prepare a customized property value study for you based on your criteria.
4. Promote and protect your best interests.
5. Explain forms and agreements.
6. Keep your information confidential.
7. Assist in writing offers with your best interests in mind.
8. Negotiate on your behalf.
9. Monitor closings.
10. Recommend other industry related professionals.