How often do you purchase real estate? Once, twice, three times in your lifetime? So you can hardly be expected to know all the ins and outs of such a major transaction complicated by so many details. In most transactions, sellers are represented by a listing agent who minds these details and their client’s best interests. As a buyer, don’t you also want complete and fair representation in your real estate transaction? Real estate buyer’s representatives are responsible for protecting the best interests of their clients—buyers like you—and can guide you through every step of the process. So the first step, and perhaps the most important, is finding your buyer’s representative.
What is a Buyer’s Representative?
Defined most simply, a buyer’s representative (or buyer’s agent) is an advocate for the buyer—not the seller—in a real estate transaction. Real estate laws and regulations vary from state to state, but buyer’s representatives usually owe full fiduciary (legal) duties, including loyalty and confidentiality, to their buyer-clients and keep their best interests in mind through the entire transaction.
In some states, consumer protection legislation has been enacted that defines the assumed relationship between a buyer and a real estate agent as that of client and buyer’s representative. Regardless, to ensure that you are working with a buyer’s representative, the two of you should sign a written buyer representation agreement that defines your buyer’s representative’s responsibilities and obligations, and yours also. Consult with your local REALTOR® Association or state real estate regulatory agency for the agency laws that govern your state.
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.
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 NAR research, buyers who work with a buyer’s representative also find their homes quicker, while viewing more properties in their search, than buyers who do not engage a buyer’s representative.
What Is the Cost to The Buyer?
There is no additional cost to the buyer. The easiest way to explain this is the following: The buyer brings all the money to the closing to purchase their home. Out of those proceeds, all the costs of that transaction is taken out of the monies that the buyers brings to the closing including any and all commissions fees.
Therefore you are paying the commission anyway, why wouldn’t you want to be represented.
