Dan Newell, REALTOR®
The Importance of Buyer
What is Buyer
Most real estate companies use the
traditional brokerage system, with all the real estate brokers and
their agents working for the seller. Their duty is to represent
the seller's best interests, which includes negotiations for the
highest price possible and structuring the transaction to the seller's
Buyer Representation is a welcome
opportunity for buyers to get the representation they deserve.
Under the Buyer Brokerage system, the agent who sells you the home is
your agent and has the duty of representing your best interests, not
those of the seller. I will negotiate for the lowest price
possible and structure the transaction to your advantage.
a Pro, Strategies for Buyers, April 1998, pg 88
Kiplinger's Personal Finance Magazine
advocate on your side. It's commonplace now for buyers to sign up
their own agents to represent their interests in a deal. Look for a
buyer's broker who will represent you -- and only you."
credential to look for is an Accredited Buyer's Representative (ABR) designation
from the Real Estate Buyer's Agent Council, a REALTOR® group. The 9,000
agents nationwide who hold the ABR designation have passed a two-day
training program and written exam, and have been buyer's
representatives in at least five closed transactions. You can search
for a real estate agent with the ABR designation on the internet (www.rebac.net),
or call 800-648-6224 for a referral."
|Working with an agent
who represents you has many advantages
a Real Estate Buyer's Agent?
A real estate buyer's agent
represents the consumer who is purchasing the property in the real
estate transaction. This agent owes full fiduciary
responsibilities, duties and loyalty to the real estate buyer.
The buyer's agent works for the buyer client and has the clients best
interests in mind through out the entire real estate transaction
The agent is compensated by the
buyer through a negotiated fee or in some states the commission is
split between the buyer's and seller's agents based on the selling
price of the real estate property. It is important for the
consumer to discuss the buyer agent's compensation in the initial
interview. In many cases it is recommended that the consumer and
buyer agent agree to the terms of compensation prior to viewing real
estate properties and sign a written agreement based on these terms.
This agreement should spell out the responsibilities of both parties
throughout the real estate transaction. It is important to note
that in some states, legislation has been enacted to protect the buyer
to the point that absent a written agreement the agent represents the
buyer throughout the real estate transaction. Consult your local
REALTOR® for complete details when you first start the search for
purchasing any real estate property.
Why use a Real
Estate Buyers Representative?
As a consumer, how often do you buy
real estate property? Once, twice, three times in your lifetime?
Purchasing real estate is a complex and major transaction with many
details to be handled. In the majority of cases the seller will be
represented by an agent. Wouldn't you want to have complete and fair
representation in the real estate transaction?
The real estate buyer agent is
responsible to protect their clients' best interests. Research by the
NATIONAL ASSOCIATION OF REALTORS® has shown that when a buyer agent
is used, the prospective buyer found their home one week faster and
examined three more properties than those consumers who did not use a