The Importance of
Buyer Representation
Most buyers assume that their agent
represents them and can give them the counsel and advice they need
to make their best deal. The truth is that unless a buyer and an agent
have entered into a Buyer Representation Agreement, the agent is
obligated to the SELLER, and that obligation REQUIRES them to share
with the seller any information they have that be of benefit to them
in the negotiation. For reference, please read the form "Information
About Brokerage Services" , paying particular attention to the second
paragraph, which outlines who represents the seller. In essence, any
agent showing a property is assuming the role of seller's sub-agent
UNLESS he or she has entered into a Buyer Representation Agreement
with their buyer. Many a buyer has been shocked to find out after
buying a home that their agent was not representing their interests,
but those of the seller. Don't let this happen to you!
The Buyer
Representation Agreement outlines various aspects of the buyer/agent
relationship including the area, number of properties, and time frame
involved in the home search. It obligates the agent to serve the buyer
with due diligence and to represent the buyer's interests fully in
all communications and negotiations. Most importantly, it allows and
obligates the agent to counsel and advise the buyer and share with
the buyer any information that may benefit them in the process of
examining a property and negotiating price purchase conditions. The
buyer, in turn, obligates themselves to working exclusively with that
agent in the procurement of property, and to direct all negotiations
and inquiries through that agent.
There are agents who prefer
not to take on the responsibility of becoming the buyer's representative.
This relieves them of the obligation to tell the buyer things they
might not want them to know, lest they decide to place a lower offer
than they might otherwise (thus jeapordizing the deal), or pursue
a different property (making more work for the agent). Such agents may
act like your representative, but outside of a Buyer Representation
Agreement, their allegiance is to the seller, plain and
simple.
Many new-home builders prefer their buyers come to the
table unrepresented, promising lower prices or "free" upgrades
as an enticement. While this does not neccessarily
mean that these people are dishonest, please remember that
these are experienced professionals who have a tremendous advantange
over most buyers in terms of negotiating experience, and that
going toe-to-toe with a builder is not a job for the faint-of-heart.
Far better to have the representation of an experienced and knowlegable
negotiator on your side and know that you have someone protecting
your interests. This applies to homes that are "For-Sale-By-Owner"
as well.
Finding and purchasing a home can be a complicated,
time-consuming endeavor. Your success as a buyer will depend greatly
on a solid relationship with your agent built on honesty, trust,
and understanding. Be honest with your agent, and you can expect
the same in return. The trust that grows out of that honesty then
becomes an understanding, outlined in the Buyer Representation Agreement.
Don't short-change yourself as a buyer by failing to make sure you
are fully and energetically represented by your chosen agent.
