Buyer's Tips
BUYERS AGENCY
In the past, real estate agents generally worked for sellers, assisting them in finding qualified buyers for their properties. Although an agent might have spent many hours showing property to a buyer and learning all the details of the buyer’s financial situation, when the buyers made the decision to purchase, the agent had to work against the buyers to get the best possible price for the seller.
This system left buyers totally without any representation when they were making the most important purchase of their lives.
Everything changed in 1990 when buyer agency became available on the East Coast after originating in California and other western states.
Representation that previously an agent could not give a buyer is now available, such as helping a buyer structure an offer, pointing out defects in the house, disclosing information about seller motivation, and protecting the buyer's interests and confidentiality.
Under Virginia law, an agreement to be represented by an agent, whether
between seller and listing agent, or buyer and buyer's agent, must be
in writing. An agent can work on a purchaser's behalf as a buyer agent
only after a written agreement is completed.
TEN MOST COMMONLY ASKED QUESTIONS ABOUT BUYERS AGENCY
- Why should I work with a buyer agent?
Since purchasing a home is one of the largest financial decisions you will undertake, you should have representation. You need a professional on your side who can advise you with negotiation strategies and help you determine fair market value.
- Why can’t I work with more than one agent?
You can work with several agents, but don’t expect them to be top agents. The best agents only work with buyers who are committed to an exclusive relationship. Since all agents have access to the same property information through the computerized Multiple Listing Service, top agents are unwilling to spend time with buyers who are not equally committed to a professional relationship.
- What benefits do I have in working with one agent?
You are better off working with one agent because it makes the most use of your valuable time because that agent gets to know your tastes, needs, and requirements. You can waste a lot of time “training” multiple agents. The most important benefit is that the agent is more likely to give objective information to compare properties. A buyer working with more than one agent risks pitting agents against one another to try to “sell” a property rather than giving completely objective information.
- What if we don’t get along with our agent?
It is really important to be comfortable and happy with your agent because buying a home is stressful. If the trust and confidence aren’t there, most likely the agent is also not happy. The buyers agency agreement is with the real estate agency and the agent is its representative. If the relationship isn’t satisfactory, it is perfectly acceptable to request another agent in our office.
- What if we want to buy a home being sold directly by a seller?
Most sellers are willing to pay a commission to the agent who brings them a buyer. In the rare occurrence where the seller will not cooperate, the buyer negotiates for a contribution toward closing costs equal to the selling commission and pays the agent directly. The third option is to not buy the house.
- What if we go to an open house and want to buy the property?
Call me immediately and do not discuss your interest with the agent at the open house. Don’t forget, the agent at the open house is representing the seller, not you. Any information you disclose could be used against you in contract negotiations on the property.
- What if I want to buy a new home?
Builders agree to pay agents. However, you must be accompanied by your buyer agent on your first visit to any new homes project. If you go without your agent, the builder may refuse to recognize the buyer representation, obligating you to pay the agent’s commission directly. Builders want you to come to their models, sign in, and fall in love without an agent to represent your interests.
- What if our situation changes and we don’t buy a home?
If there is no purchase, there is no commission paid.
- How long is the buyer agency agreement?
There should be enough time to find the right home, negotiate the contract, and get the transaction to settlement. Four to six months is average.
-
Why should an agent work to get a buyer a better deal when the lower
sales price will decrease the agents commission?
Let’s do the math.
On a $150,000 sale, the average agents commission is $2,250.
On a $145,000 sale, it’s $2,175.
A five thousand dollar increase in price raises the commission by $75.00.As a buyers agent, I pride myself on getting the best price and terms for my clients. I won't risk minimal monetary gains over the satisfaction of my clients, their return business, and my clients recommendation of me to their family and friends.
WHAT YOU CAN DO TO HELP
- When
you are driving around, write down the addresses of homes for sale that
interest you. I'll find out all the information for you.
- If
you go to an open house, give the agent hosting the open house my card.
It will prevent you from receiving unnecessary follow up calls.
- Call me if you see ads in newspapers, Homes magazines, or Cable TV. Let me get the details for you.
- Let
me know about your questions or concerns. The real estate market and
loan programs change all the time, so you could be receiving
misinformation from family & friends. To avoid confusion, let me
answer your questions.
- Tell
me about your housing needs and objectives. The more information I
have, the better I can understand your requirements.
- If
you will be honest with me about your finances, we can work together to
come up with a financial plan that will meet lender acceptance.
- Let me know if your buying plans change. Your urgency dictates the level of attention I'm giving you. Tell me so I know you're getting the appropriate attention.
