Let’s begin with an interesting fact: The role of “BUYER’S AGENT” emerged in the mid-1980’s. Why? Because the BUYERS began REQUESTING equal representation. Prior to the 1980’s all the agents involved in a transaction legally represented the SELLER. Thus, the seller’s agent was both the “listing agent” and “selling agent.” When state-licensing officials and trade organizations began questioning certain practices within the real estate industry, agents began to be required to reveal which party they were representing. Thus, the “buyer’s agent” (also now known as the “selling agent“) came to be.
So, if you are in the market for the purchase of a home, the reasons why you should hire a buyer’s agent are actually numerous. As YOUR agent, the buyer’s agent will be considering your Highest interests and concerns upmost, when it comes to SELECTING and/or SHOWING potential properties; NEGOTIATING the selling price with the Listing Agent; Looking out for any major safety issues during INSPECTIONS and if any RED FLAGS emerge, utilizing this information to further negotiate the selling price if appropriate; and PREPARING and FACILITATING the obtaining and exchange of paperwork and documents involved in a HOME PURCHASE.
Just think about it this way. If you were involved in a court trial, would you want the SAME PERSON who has signed a contract pledging fiduciary duties to their client (the SELLER, in our scenario) to be the same person you would want to be representing you (the BUYER, in our scenario) and your best interests? Most likely not.
For this reason, as well as the reasonable desire and expectation of compensation for diligent effort put forth, a Realtor may ask you to sign a Buyer Broker Agreement. I would urge you to consider signing such an agreement as it is largely geared toward protecting YOU, the BUYER. This agreement ensures and guarantees specific fiduciary duties to you, the buyer, that an agent must uphold.
These duties include: (1). Full disclosure of useful information; (2). Accounting on all matters; (3). Confidentiality on all matters; (4). Obedience to Buyer’s needs; (5). Negotiating the best price for the buyer; and (6) Loyalty between agent and buyer.
In today’s competitive market, a buyer’s agent gives you the best chance that your offer will be accepted and performs many other tasks to guide, advise, and protect you on the journey to home ownership. And, get this, the SELLER pays the commission of the buyer’s agent. The service of the buyer’s agent costs you NOTHING. If you are in the market to purchase a home, there is nothing to lose. Find and meet with a Realtor you trust today, and ask them what they can do for YOU.