A big misconception that I've found among buyers or people who might be thinking about buying a home, is that one real estate agent is just like the next one....half a step above a car salesman and half a step below an attorney. Sometimes that might be true, but not always!
A REALTOR is a real estate professional that has been trained and follows the Code of Ethics by the National Association of Realtors. And under that scope, each Realtor wears a different hat, depending on their clients' needs. For instance, a listing agent, typically, is working for the seller and has their best interest at heart during the transaction. A buyer's agent, typically, is working for the buyer and has their best interest at heart. And sometimes, the same Realtor is wearing both hats, working for both the seller and the buyer at the same time. These are very generalized descriptions, so let's look at why you should use a Realtor when buying a home!
A buyer's agent will work to negotiate the best price, ensure the property is inspected, and make sure you have the representation you need. Things you tell a buyer's agent remain confidential. Using a buyer's agent also means that you will be shown homes that are For Sale By Owner (FSBO). It might seem like using a buyer's agency means you are going to pay more -- but that's not always the case. In most situations, buyer's agents are paid by the seller and the commission is all ready determined before the offer is written. In a FSBO situation, usually the buyer's agent will negotiate their commission directly with the seller. If the seller refuses to pay a commission, that will be up to the buyer's agent and the buyer to discuss.
Every transaction and situation is different. This is why it might be a good idea to interview agents and get a feel for how well they will work for you and with you. Every Realtor should ask a prospective buyer to sign a Buyer's Agency Agreement. This agreement is solely between the buyer and the Realtor/Realty Firm. For a buyer, this agreement specifies the duties and responsibilities owed by the Realtor to the buyer. If the buyer is unsatisfied, essentially, they can fire the Realtor and cancel the agreement. The buyer is not required to sign an agreement until an offer for land or a home is put into writing. However, in the meantime, the Realtor is not required to provide loyalty, due diligence, provide all the material facts of a property, or hold a buyer's best interest at heart. So it really is in the best interest of everyone involved if an agreement is signed and agreed upon from the start to clearly define all the duties, responsibilities and expectations.
Homebuying is one of the most stressful and most expensive life events that one can undertake. Doesn't it make sense to have a trained professional to help you with it? Especially when you don't have to pay them for their knowledge and expertise!
As always, I am here for all your real estate needs, and I'm never too busy for any of your referrals!
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