Ask about Buyer Agency

When a homeowner wishes to sell their home, they may opt to hire a real estate agent to market their home to attract a qualified buyer as quickly as possible. When a person is in the market to buy a home, they too may opt to hire a real estate agent to help them to find a good house and help them with the negotiations and the final purchase. In the first scenario, the real estate agent serves as the listing agent. In the second scenario, the real estate agent serves as the selling agent or in layman's terms the buyer's agent.

For any business relationship to be successful, there must be clearly defined roles and expectations. When working with real estate agents, the same holds true. When you hire a real estate agent to act on your behalf and represent your interests in a real estate transaction, agency is created. Most real estate agents represent both buyers and sellers. They may represent only the seller on one transaction and on another transaction they may represent only the buyer. Sometimes they may represent both the seller AND the buyer in the same transaction. When an agent represents both sides of a transaction (the seller side and the buyer side) this is called dual agency. There are also real estate agents who choose to represent only buyers. They are called Exclusive Buyer's Agents and they do not list homes at all. Since they cater only to homebuyers, the possibility for dual agency never arises.

Different states may have different rules about agency and how a real estate agent may work with the public. Some states may prohibit dual agency while others allow for it. Others may provide for designated agency (a type of dual agency) where the agent of a firm represents the seller and another agent in the same firm represents the buyer, and both agents maintain strict confidentiality of both buyer and seller from one another just as if they were working in competing real estate firms.

In the role of buyer's agent, a real estate agent will work hard to locate homes for sale - any home - that matches your tastes and requirements. They will arrange personal tours and incorporate your feedback into the selection process for future showing appointments. You will be encouraged to ask lots of questions and share your thoughts about your needs, wants, likes, and dislikes. Your buyer's agent will also ask questions of you so as to ensure that house hunting efforts are as productive as possible. A home's positive features as well as its drawbacks will be pointed out so that you can weigh your options in an informed manner. You should be able to rely on your agent to help you process and sift through all of your choices so that you are considering the homes that have the most appeal. Once you've found THE house, your buyer's agent will continue to exploit all available resources to help you compose a good offer and negotiate a good deal. Since price is just one of several things a buyer can negotiate, your buyer's agent will help you determine the negotiating options that could work best for you. Throughout the process, a good buyer's agent will help you avoid frustration or disappointment by helping you establish realistic goals and expectations.

If you are like most buyers, you will begin your home search online. This is a great way to get a feel of the market and it also allows you to assess the responsiveness and attentiveness of different agents as you make requests for additional information about a home that interests you. I recommend signing a buyer agency agreement as soon as you have found an agent that works well for you and most importantly, as soon as you are ready to get out there and buy a home. The buyer agency agreement spells out the nature of your agency relationship in plain black and white. The duration of the agency agreement, confidentiality, duties, agent compensation, bonuses & incentives, permission or refusal to engage in dual agency, and expectations regarding other real estate service providers are all negotiated and outlined in the agreement. You should have confidence in your home purchase and a satisfying buying experience overall. As with any successful business relationship, a satisfied client is the primary goal.

Whenever you are ready to begin working with a real estate agent, be sure to first inquire about how that agent works with homebuyers. Describe the type of home and general price range you are in the market for. Does this agent have any listings that you may be interested in? Learn about what happens in the event you are interested in a home listed by that agent and that agent's real estate firm in general. Remember - the personal information you share now just might compromise your negotiating position later. So before you go spilling your guts to the agent on the phone or to the agent on the receiving end of your email inquiry, take a moment to talk about buyer agency. You'll be happy you did.