Choosing a Buyer's Agent
Just a few years ago all agents represented the seller. The buyer was a "customer" and the common assumption was "buyer beware."
Now, most states have implemented agency laws which establish four kinds of agency:
- Sellers agent
- Buyers agent
- Dual agent - who represents both parties
- Non-agent - who is merely a facilitator
As a buyer you may or may not want to sign an agency relationship document with a Realtor. Here's what you should consider:
When you sign a Buyer Broker Agreement |
When you buy without representation |
You are bound to that agent until the expiration date of your agreement. If you buy from someone else… you will STILL owe your agent a commission. |
You can follow ads and view homes with any agent you choose. |
You may have an agent who is consciously searching for homes or property that suits your wants and needs. |
You do your own searching and hope an agent will call when a new listing comes in that might interest you. |
You can ask for a market analysis on homes you're considering. |
You do your own analysis based on other homes you've viewed |
You have someone to advise you during the negotiating process. |
You make your own decisions and do your own negotiating. |
Your agent will probably help with arranging inspections, etc. |
The agent may or may not assist. |
You may be asked to become part of a dual agency relationship… which prevents your agent from assisting in negotiations or advising you on price. |
You represent yourself… no conflict. |
If you've chosen well, you'll have a valuable person on your side. |
You represent yourself. |
Before you sign a buyer's agency agreement with ANY agent, take the time to be sure this is the right agent. Whatever you do - do NOT sign this agreement on your first meeting.
If the agent insists that you sign before he or she will talk to you about homes for sale, politely excuse yourself and find a different agent. While some agencies require this of agents, it is never a good idea to tie yourself for 2, or 4, or 6 months to a person you don't yet know.
Instead, talk with the agent and observe his or her responses to your questions and comments. Ask yourself these questions:
- Do they appear to understand what you're looking for?
- Are they respectful of the financial parameters you've set forth, or are they encouraging you to look at homes in another price range?
- If you're looking for raw land, are they willing to take you there… or just to hand you a map?
- Are they willing to take the time to talk with you?
- Are they listening to you and thinking of homes/ property that might suit you?
- Are they enthused about any of the properties?
- Are they warm and friendly, or are they aloof and condescending?
- Do you feel comfortable with this person?
- Can he or she answer questions about financing, taxes, the neighborhood, zoning regulations, inspections, etc.? In other words… does this person have enough experience to truly help you?
- Is he or she willing to help gather complete information on homes that interest you?
If you feel uneasy about the answers to any of these questions, give it some time. Ask to see a house or two and then see how you feel. ONLY if you feel sure that this person has the expertise and the desire to act in your best interests should you sign that contract.
Remember: Buyer's Agency agreements are contracts. They are legal and binding and you can't get out of them without a great deal of hassle. Be sure before you sign.
Click here to contact me if you have any questions.
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