Agency Choices for Buyers of Real Estate
Customer or Client... It's Your Choice!
Because all real estate brokerage companies are subject to
the Common Law of Agency, the information here within pertains
to every real estate brokerage company. A buyer and a real estate
brokerage company must agree on a legal relationship before your
real estate needs or financial information are discussed. This
legal relationship determines whether you will receive client
level services or customer level services.
Customer Level Service: If a real estate brokerage
company represents the seller in a transaction and not the buyer,
the seller will be the client and the buyer will be the
customer of the seller's brokerage company. In this example all
fiduciary duties are owed to the seller and the seller only! (Fiduciary
duties are explained below)
Client Level Service: If a real estate brokerage company
represents the buyer in a transaction and not the seller, the
buyer will be the client and the seller the customer of
the buyer's brokerage company. To obtain representation, the buyer
and the brokerage company will enter into a "Buyer Representation
Agreement." In this example the buyer is owed all the fiduciary
duties of his/her agent. (Fiduciary duties are explained below)
The Fiduciary Duties owed to a client by a real estate
brokerage company are as follows:
* Undivided loyalty
* Obedience
* Reasonable Care
* Confidentiality
* Full Disclosure
* Accountability
When signing any sort of contract, there is always consideration
to be paid. However, there are several ways to receive this representation
without having to pay for it yourself ! Here are a few:
1. To induce buyers to view their property, many sellers will
voluntarily agree to pay all or a portion of the buyer's agent's
fee on behalf of the buyer. If the property is listed with a brokerage
company, this can be accomplished at no additional expense to
the seller.
2. A buyer may make an offer to the seller which is contingent
upon the seller paying the buyer's agent's fee.
3. The buyer can pay the buyer's agent's fee and reduce the
offer to the seller by the amount of the fee.
4. The buyer can simply refuse to purchase the property if
the seller will not assist in the paying of the buyer's agent's
fee.
* TO DATE, NONE OF MY BUYER CLIENTS HAVE HAD TO PAY FOR THE
REPRESENTATION THAT I SUPPLIED TO THEM. YOU CAN ENJOY THIS LUXURY
AS WELL!!
Let's now look at the benefits of being a buyer client while
looking for a home:
* Your agent can now fight to help you obtain the best possible
price & terms for the property you finally choose.
* The knowledge that anything you say to your agent cannot
be used against you in the negotiations with the seller.
* Now you can be provided with a 'Competitive Market Analysis'
for any home to assist you in determining price.
* Your buyer agent will provide an objective view of properties
pointing out both positive and negative aspects of the property,
neighborhood & area.
* Your buyer agent will assist you, the buyer, in establishing
a negotiating strategy, implementing the strategy and keeping
the strategy confidential.
* But most importantly, your agent will obey your lawful instructions
and provide 100% loyalty to you!
Click on "Referral" below if you would like me to
assist you in locating the "Accredited Buyer Representative"
nearest you. You know you want to purchase a home, now make the
move that will help you achieve your goal for the lowest possible
price and best possible terms...
It's your money...It's your decision!
