BUYER'S AGENT

Purchasing real estate is a complex and major transaction with many details to be handled.  Depending on the laws in your state and the business arrangement you have with a licensed real estate agent, that agent may actually be negotiating for the seller, not you the buyer.  The best way to be certain that an agent is working in your best interests is by signing a buyer representation agreement with an agent.

A real estate buyer's representative represents the buyer who is purchasing property in a real estate transaction.  Research by the National Association of REALTORS has shown that when a buyer's representative is used, the prospective buyer found a home one week faster and examined three more properties than consumers who did not use a buyer's representative.

The buyer's representative works for, and owes fiduciary responsibilities to, the real estate buyer and has buyer's best interests in mind throughout the entire real estate process.  A buyer's representative will: 

• Evaluate the specific needs and wants of the buyer and locate properties that fit those specifications. 

• Assist the buyer in determining the amount that they can afford (pre-qualify), and show properties in that price range and locale. 

• Assist in viewing properties -- accompany the buyer on the showings, or preview the properties on behalf of the buyer to insure that the identified specifications are met. 

• Research the selected properties to identify any problems or issues to help the buyer make an informed decision prior to making an offer to purchase the property. 

• Advise the buyer on structuring an appropriate offer to purchase the selected property. 

• Present the offer to the seller's agent and the seller on the buyer's behalf. 

• Negotiate on behalf of the buyer to help obtain the identified property -- keeping the buyer's best interests in mind. 

• Assist in securing appropriate financing for the selected property. 

• Provide a list of potential qualified vendors (e.g. movers, attorneys, carpenters, etc.) if these services are needed. 

• Most importantly, fully-represent the buyer throughout the real estate transaction. 

It is important for the buyer to discuss the buyer's representative's compensation in the initial interview.  In many cases it is recommended that the buyer and the buyer's representative agree to the terms of compensation prior to viewing properties, and sign a written agreement based on those terms.  The agreement should spell out the responsibilities of both parties throughout the real estate process.  In many instances, the buyer's agent would receive the same fee as the "selling" agent, paid by the seller's broker/agent. In instances where a property is not listed, an agreement should be reached between the buyer's agent and the buyer prior to showing the property.