FAQ #3: What is a Buyer’s Agent & Why Should I Hire One?
August 18th, 2007 Categories: Buyers, Frequently Asked Questions
A buyer’s agent is a REALTOR that represents you, the buyer throughout your home buying experience.
A buyer’s agent may be certified by the Real Estate Buyer’s Council or a real estate agent that prefers to work with buyers. Any real estate agent can work with a buyer.
Why Should I Hire A Buyer’s Agent?
In the real estate process you will meet a real estate agent that is listing the property (Listing Agent) or, in the case of new construction, a sales agent.
A listing agent represents the seller of the property and is hired to negotiated conditions favorable to the seller in order to sell their property.
Similarly, when you walk into the sales office for a new construction project, the sales person you meet, who may or may not be a REALTOR, is working for the builder.
Who is working for you? or looking out for your best interest? NO ONE
When you hire a buyer’s agent, you hire someone who represents you and you alone.
A accredited buyer’s agent owes certain fiduciary responsibilities to the buyer. They will:
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- Locate and show you property,
- Provide Market Value information,
- Structure your purchase offer to the seller,
- Negotiate with the seller,
- Handle all the details up to and at closing.
The average person buys real estate a few times in their lives. A real estate agent does this for a living. They can tell you the latest market conditions, issues to look for with different types of properties or neighborhoods and things you will never think about. They will guide you through the process.
How Does A Buyer Agent Get Paid?
This issue is spelled out in your Buyer Agreement. Most buyer’s agents will accept the commission that is offered in the MLS from the listing agent, others will require a determine percentage. Commissions are always negotiable. You should always discuss this with your buyer agent to make sure you understand how your agent is getting paid.
Most real estate agents are independant contractors who associate themselves with a broker. This is how they make thier living. They are professionals and shouldn’t shy away from answering any of your questions about your business relationship.
Buying a home is not like buying a car. You are making the largest single investment in your lifetime. You are going to live in your next home for years to come and can’t just trade it in if you don’t like it. Make sure you take the steps available to you to protect your investment.
For more information about real estate agency, read:
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