|
Is there any cost?
In most cases there is no additional costs to you for the service
of a buyer's agent. Although technically you are hiring the buyer
agent, the compensation can come from the real estate transaction.
When a home is listed for sale with a real estate agent, the seller
generally allows for a commission big enough for the listing agent
to share 50/50 with the real estate agent that brings in the buyer.
What if I want to purchase a for sale by owner?
A similar process would apply. In the offer to purchase, the agent
simply tells the seller that instead of having to pay a full
commission to a listing Real Estate firm, the buyer is requesting
that his/her half of the Real Estate commission be paid from
the proceeds of the transaction. With this method both the buyer
and the seller can save on commission by dealing directly with
a buyer agent.
If the agent usually works on a commission, what is the agents
incentive to save me money when negotiating on my behalf?
One simple answer, "Repeat Business". The better the
job that agents do for home buyers the more the word gets out.
There simply would be no growth in one's Real Estate business or
career if they didn't do a great job advising home buyers. In addition,
it would be a violation of a written contract between the buyer
and the agent if the agent knowingly did an injustice to the buyer.
How does the buyer agent find out about all the homes that might
meet my needs?
Access to the M.L.S. service through the Houston Association of
Realtors (where most, if not all, agents list their homes for sale).
Buyer agents also stay on top of for sale by owner and new construction
properties as well.
When working with a Real Estate agent am I a client or a customer?
A buyer who is a customer of a Real Estate agent is working with
an agent whose loyalty lies with the seller. You must be a client
of the agent in order to get the best kind of representation.
Be sure it is in writing from your agent. Do not assume. Many
home buyers have always thought the agent working with them was
working for them.
I heard that buyer agents want me to sign a contract that would
tie me up to only work with them. What if I wanted to work with
other agents?
The contract between you and a buyer agent is very important to
be aware of. Buyer agents offer the contract as protection for
you the buyer as well as the Agent. It allows you to have recourse
against a buyer agent who does not perform to your best interests.
It also ensures that you will work with that agent for the duration
of the contract. Contracts are written for x number of days. The
decision is yours. Keep the contract short at first. After such
time, you will have been able to decide whether or not the agent
you are working with will live up to your standards. At that time
you have the option of extending the contract or, you may decide
to choose to work with another agent.
An agent will go to work for you spending many hours of research,
scouring the market place continuously looking for the homes that
best suits your needs, financially as well as physically. A buyer
agents need to know that you are committed to them during the time
they are committed to work for you.
What can I expect from a buyer agent?
NO PRESSURE: Buyer brokers are paid professional consultants. They
never pressure their client to make a decision to purchase a particular
property. Nonetheless, when appropriate, and still without exerting
undue pressure, the broker must advise the buyer-client of the
ramifications of such acts as delaying decisions and making inappropriate
offers.
REASONABLE CARE AND DILIGENCE: A buyer broker is responsible for
researching any property of you choice and its surroundings to
discover all material information prior to a buyer-client making
an offer to purchase.
NEGOTIATOR: The buyer broker has assumed the responsibility to
make sure their buyer-clients never unknowingly over-pay for the
home being purchased. It is the buyer brokers job to do a market
analysis on every home the buyer-client intends to make an offer
on. If the buyer broker knows of any information regarding the
sellers willingness to accept less than the listed price, it is
their fiduciary responsibility to inform the buyer-client of such
facts.
LOYALTY: A buyer broker must always think of the buyer-client
before him or herself, even when it may not be in the buyer brokers
best interest. A buyer broker must always be loyal, to the buyer,
never doing anything that would intentionally jeopardize the buyer-client's
best interests.
OBEDIENCE: A buyer broker owes absolute obedience to the buyer
client provided that the buyer broker is not asked to violate any
Provincial or Federal statutes or regulations. The buyer broker
has the job to search out the entire area to the best of his/her
ability including for sale by owner and new construction for the
homes that best meet their clients needs and not to waste time
showing their clients homes that do not meet their criteria. Doing
otherwise would be a breach of contract between the buyer broker
and the client.
DISCLOSURE: A buyer broker must disclose any information he/she
knows about the seller to the buyer-client. A buyer broker must
disclose any pertinent facts about the property and the immediate
area known to him/her or, which should be reasonably expected to
be known as the representative of the buyer-client.
CONFIDENTIALITY: A buyer broker must keep all sensitive information
concerning his/her client confidential, unless the client has given
the buyer broker permission to disclose such information.
THE CONTRACT: The buyer broker is bound by contract to perform
on behalf of the buyer. A buyer should always insist on having
a contractual relationship with the buyer broker. This contract
fully obligates and defines the legal responsibilities of the buyer
broker. The buyer client now can have recourse against his/her
Real Estate agent if in fact the agent has not done his/her job
thoroughly.
In dealings with the seller, a buyer's agent should exercise reasonable
skill and care in performance of the agent's duties, deal honestly,
fairly and in good faith and disclose all facts known to the agent
materially affecting the buyer's ability and/or willingness to
perform a contract to acquire seller's property that are not consistent
with the agent's fiduciary duties to the buyer. Beware of the Real
Estate agent that takes listings and calls him/herself a buyers
agent without properly advising you of the fact.
Who Pays the Buyer's Agent Fee?
I do NOT charge a fee to my buying clients for my services as
an Accredited Buyer Representative. My fee is paid from the seller´s
proceeds. Even though my fee is paid by the seller, the seller
is informed in writing that I represent the exclusive interests
of my buying client. I in no way owe any duties to the seller.
|
