Buyer's Center
Buyer vs. Seller Agents
Not All Real Etate Agents are the Same
Before you choose an agent or begin to look at homes, you should consider the services that you get from different types of agents. Most traditional agents still represent the seller; and don't work for the buyer. Other companies that list homes offer to represent the buyer but fail to do so under certain circumstances and end up representing no one.
Do Yourself a Favor: Be Sure to Use an Agent Who is an Accredited Buyers Representative By Training and ALSO an Exclusive Buyer Agent, by Choice
Do Yourself a Favor: Be Sure to Use an Agent Who is an Accredited Buyers Representative By Training and ALSO an Exclusive Buyer Agent, by Choice
When buying real estate, you may have several choices as to how you want a real estate firm and its agents to work with you. For example, you may want them to represent only you (as a buyer agent). You need to be certain that the agent with whom you choose to work can ALWAYS allow you to exercise your rights under law to be have AGENT REPRESENTATION in a real estate transaction. Here are your options listed in order or desirabilty.
What is an Exclusive Buyer Agent?
Exclusive Buyer Agents, such as Marion Morton, work exclusively for buyers. They do not take listings or work for a company that does, so they never have an obligation to represent the best interests of the sellers. They are YOUR agent and always work in your best interests to get the lowest price and best terms for the contract on the property you want to buy.
These agents wear only one hat: that of a buyer agent. They have made a conscious business decision not to list homes for sale or otherwise dilute their time and energy away from serving buyers. You are already paying for this service in the price of the house. Why not exercise your rights?
What Kinds of Services Do They Do?
Whether you have a written or unwritten agreement, a buyer agent will perform a number of services for you. These may include helping you:
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find a suitable property
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arrange financing
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learn more about the property
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otherwise promote your best interests
If you have a written agency agreement, the agent can also help you prepare and submit a written offer to the seller.
How is a Buyer Agent Compensated?
A buyer agent can be compensated in different ways. For example, you can pay the agent out of your own pocket. Or the agent may seek compensation from the seller or listing agent first, but require you to pay if the listing agent refuses. Whatever the case, be sure your compensation arrangement with your buyer agent is spelled out in a buyer agency agreement before you make an offer to purchase property, and that you carefully read and understand the compensation provision.
What is a "Casual" Buyer Agent? Dual Agent?
These agents have entered into a Buyer Agency Agreement with a buyer and are "CASUAL" buyer agents. They MAY continue to represent you throughout the buying process. However, they may become DUAL AGENTS because they also work for a firm whose client is the seller of the house you have chosen to purchase.
In this case, all of the representation you have been promised goes out the window. The agent who once represented you now represents no one. These agents are obligated only to treat "all parties" fairly and honestly. No help for the buyer in framing an offer or negotiating the contract. In some states this arrangement is called "transactional agency."
The more successful your agent/agent's company is, the larger the inventory of seller/clients and the more likely your buyer agent is to become a dual agent.
Dual Agency Must be Agreed to by All Parties
If you don't want to be left on your own to frame an offer and negotiate a contract, you have two options: (1) You may choose another house to purchase that is not your agent/agent's company listing and continue with the representation relationship; or (2) If you really want the house you first chose, you may cancel your Buyer Agency Agreement and go to an agent with another company who can offer an agency representation relationship.
Tell Me About a Seller Agent
Agents working for a company that holds a seller's listing and whose complete loyalty is to the seller. A seller agent is required to keep complete confidentiality about the seller's motivation to move, lowest amount he would take for the house, etc... but obligated to find out the most confidential information about prospective buyer's motivation to buy, highest price they are willing to pay, etc. AND SHARE THEM WITH THE SELLER! A buyer is always a "customer" and the seller is always a "client" when working with the traditional seller agent. What is the difference? Click Here to find out!
Seller Agents Who Work With a Buyer
If the real estate agent or firm that you contact does not offer buyer agency or you do not want them to act as your buyer agent, you can still work with the firm and its agents. However, they will be acting as seller agent (or "subagent"). The agent can still help you find and purchase property and provide many of the same services as a buyer agent. The agent must be fair with you and provide you with any "material facts" (such as a leaky roof) about properties.
Remember, the Agent Represents the Seller, Not You
Therefore the agent must try to obtain for the seller the best possible price and terms for the seller's property. Furthermore, a seller agent is required to give the seller any information about you (even personal, financial or confidential information) that would help the seller in the sale of his or her property. Agents must tell you in writing if they are seller agents before you say anything that can help the seller. But until you are sure that an agent is not a seller agent, you should avoid saying anything you do not want a seller to know.
Therefore the agent must try to obtain for the seller the best possible price and terms for the seller's property. Furthermore, a seller agent is required to give the seller any information about you (even personal, financial or confidential information) that would help the seller in the sale of his or her property. Agents must tell you in writing if they are seller agents before you say anything that can help the seller. But until you are sure that an agent is not a seller agent, you should avoid saying anything you do not want a seller to know.