What is a Buyer Broker?
Isn’t the agent who shows me homes representing me?
Not necessarily. Unless you have a written agency agreement, the agent showing you homes may not represent you. In fact, that agent may represent the seller. If the agent represents the seller, everything you say can be carried back to the seller, thereby helping the seller make a better and more informed decision about how to deal with your offer. You may have given away several strategic negotiating advantages simply by opening your mouth to an agent that does not represent you.
You can ask YOUR agent (ie your buyer broker) to represent your best interests. That way, anything you say can be held in confidence. The agent would then have fiduciary duties to you and not the seller. It is a good idea to decide up-front in which capacity you want your agent to work with you. New York State Law requires up-front disclosure on this subject.
I offer buyer broker agency at no additional cost. The fee is still being paid by the seller. Many people believe that whoever is paying the fee is who the loyalty is owed to. This just simply is not true. Agency has nothing to do with who pays the fee.
Who pays the fee?
Agents are usually paid from the listing broker who offers the property for sale on behalf of their listed seller clients When no other broker is involved and you buy a property directly from an owner, our fee will be included in your offer amount It is paid to us at the closing from the proceeds of the sale just like the bank,
the attorneys & all other professionals involved in the transaction.
“Get a buyer broker on your side. In most states, real-estate agents work for the seller, not the buyer. This means that the agent wants to get the seller the best price possible. Using a buyer broker, who has your best interest in mind, may help you shave thousands off a home’s purchase price, mortgage or various other costs, and there is no fee to the consumer
What can a buyer broker do for me?
A buyer broker can do everything traditional agents do plus the following:
- Locate and show targeted properties, showing both strengths and weaknesses.
- Perform a market analysis to assist you in determining “Fair Market Value.”
- Advise client regarding offers on property.
- Consult with client regarding counteroffers, contingencies, and negotiate on client’s behalf.
- Employ professional negotiating skills using market knowledge, and experience making sure the BUYER gets pays the lowest price and gets the property on the best terms.
- Assist with favorable financing right “in the house” with the comfort and convenience of dealing with one person through the whole transaction OR guidance with knowledge towards other financing options most favorable to you, the client.
- Strict Confidentiality.
- Full Involvement, support and guidance through the whole transaction.
What Are Some Benefits of Using a buyer broker?
When a relationship is created between the purchaser and a buyer broker, the agent must work in the buyer client’s best interest at all times, thereby providing purchasers with the same level of representation traditionally given only to the seller. Here are just a few of the benefits you will receive from having your own personal representative when seeking to purchase property:
- Confidentiality. The agent you hire to represent you will not disclose confidential information regarding motivation, price and terms, or anything else of a personal nature to the seller or seller’s agent without your permission to do so.
- Loyalty. The buyer’s agent must work in the buyer’s best interest at all times, even if it is not in the agent’s personal best interest to do so. This means that the agent will virtually do for you what they would do for themselves in the transaction.
- Full disclosure. The agent you hire to represent you will fully disclose any information gained from the seller or the seller’s agent that could be used by you in the transaction. In addition, the buyer’s agent will undertake a level of diligence and discovery that will give you the necessary information to make an informed decision as to the property you wish to purchase.
- The buyer’s agent will search for all available properties for sale by owner, unlisted properties, new construction, foreclosures, and others and will not limit their showings to properties they have listed. A listing agent’s job is to move the inventory of their seller clients. A buyer’s agent’s job is to locate satisfactory properties for their client. Any limitations on this search will be documented in the buyer agency agreement.
- As the buyer broker goes through the properties with you, they will assist you with analyzing the properties and determining their strengths and weaknesses, allowing you to make informed comparisons. A lifestyle analysis will be performed to determine whether or not the property would suit your particular needs.
- The buyer broker you hire to represent you in the transaction will do a market analysis on the chosen property and will provide you with an offering range for that particular property. They will then set a negotiating strategy for you to assist you in acquiring the property at the lowest price and best terms possible for your situation.
- The buyer broker will complete an offer to purchase that is “buyer friendly” and contains the contingencies and protective clauses you need
These are just a few of the benefits received from having your own personal buyer buyer when purchasing. Considering that the majority of buyer agents are paid through the transaction or by the seller’s agent, doesn’t it just make good sense that you have the representation you deserve?