What is a buyer’s representative?
A buyer’s representative (or buyer’s agent) is an advocate for the buyer not the seller in a real estate transaction. Buyer’s representative owes full fiduciary (legal) duties, including loyalty and confidentiality to their buyer-client and keep their best interests in mind through the entire transaction.
Why should I use a buyer’s representative?
The two most important reasons to use a buyer’s representative are protection and efficiency.
Most likely, the seller of whatever property you buy will be represented by a listing agent who can provide expertise throughout the transaction. In traditional real estate transactions quite often both agents are working for the sellers. As a buyer, unless you make special arrangements with your agent, both the agent you are working with and the agent who listed the property are legally loyal agents of the sellers.
Don’t you want the same kind of service as a buyer? A buyer’s representative can provide you with the expertise you need through the entire transaction.
According to National Association of Realtors research, buyers who work with a buyer’s representative also find their homes quicker, while viewing more properties in their search, then buyers who do not engage a buyer’s representative.
The difference between buyer’s and seller’s representative
Suppose you sign an offer to buy a home for $150,000. You really want the property and there’s a chance other offers are coming in, so you tell the broker that “we’ll go up to $160,000 if we have to. But of course don’t tell that to the seller”. If you’re dealing with a seller’s agent, he or she is duty-bound to tell the seller that important fact. Honest treatment might require that the agent warn you that “I must convey to the seller anything that would be useful so don’t tell me anything you wouldn’t tell the seller.
As your buyer representative I will help you as follows:
• Identify your needs-Hold an initial counseling session to assist you in determining your specific needs and desires.
• Suggest sources of financing and other service professionals, such as inspectors and exterminators
• Provide sources of accurate information on neighborhoods, schools and communities
• Select and arrange property showings-schedule appointments for you and accompany you on property showings and inform you about attractive properties that you might drive by
• Evaluate particular properties-Provide you with a professional comparative analysis and tax records on any home you select and provide you with important data on recent comparable sales. This will help you make a realistic purchase offer, and not overpay.
• Explain forms and agreements
• Suggest contract contingencies to protect you, rather than the seller
• Assist in the negotiations for a favorable price and terms
• Keep all information confidential that could weaken your bargaining position
• Monitor the entire purchase process, assisting with issues that arise through closing
How I am compensated
Typically, I am compensated from the commission sellers pay their listing agents, usually based on the selling price of the property. If compensation is not offered by the seller, my compensation will be negotiated and agreed to prior to viewing properties in a written buyer representation agreement.
Disclosure form regarding agency relationship
New York State law requires real estate licensees who are acting as agents of buyers and sellers of property to advise the potential buyers and sellers with whom they work of the nature of their agency relationship and rights and obligations it creates. Please download and read this disclosure form for Buyer and Seller. Please don’t hesitate to ask questions.
