You think your real estate agent is working for you.  But is he?

Maybe.  Then again, maybe not.

While it seems intuitive that your real estate agent would act in your best interests -- and only your best interests -- when helping you buy a home, that’s not necessarily so.  In fact, if you haven’t established a buyer-client relationship with your real estate agent, he could be working for the seller’s best interests -- steering you to particular homes or encouraging you to make a higher bid than you would otherwise.

That’s why it’s so important to understand, first, what it means to be a buyer-customer and buyer-client, and second, to talk with your agent (or prospective agent) about which relationship you have.  The chart below -- from the Real Estate Buyer’s Agent Council (REBAC) website -- highlights the differences between buyer-customers and buyer-clients.

I think that it’s always the best idea to have someone working for you, and only you, when you’re buying or selling real estate.  If you agree, and want to make sure that you have a dedicated buyer’s representative working for you, talk with your real estate agent.  Ask:

<!--[if !supportLists]-->·         <!--[endif]-->Do you represent buyers, sellers or both?

<!--[if !supportLists]-->·         <!--[endif]-->What services are provided to (or excluded from) me, based on my status as a buyer-customer or buyer-client?

<!--[if !supportLists]-->·         <!--[endif]-->When does representation begin? When does it conclude?

<!--[if !supportLists]-->·         <!--[endif]-->If I’m not ready to commit to your normal term, can you offer me a one-day buyer agency agreement or a 24-hour opt-out clause?

<!--[if !supportLists]-->·         <!--[endif]-->How is dual agency addressed in your firm?

Dual agency is when the same real estate brokerage firm represents the buyer and the seller in a transaction.  Imagine that you’re working with a dedicated buyer’s representative.  The house you fall head-over-heels in love with is listed by the same real estate brokerage that your buyer’s rep works for.  How can the brokerage be completely, and exclusively loyal to both you and the seller?  Firms address dual agency differently, and laws vary by state.  Talk them over with your buyer’s rep.

One great place to find buyer’s representatives in your area is the REBAC website, http://rebac.net/index.cfm.  REBAC awards Accredited Buyer’s Representative (ABR®) designations to real estate agents who have completed specialized training in delivering the best in buyer-representation services.  (Side note: While I’ve worked as a buyer’s representative for many years, I recently earned the ABR® designation.)

What do you think?  Click on the “Comments” link below and join the discussion!