Buying and selling is a confusing process; that much is true for everyone, even second time buyers/sellers. It’s up to me to make the process as easy for you as possible, but there’s one area that seems to be more perplexing than others: buyer’s agents. Who pays them, and how much do they get paid? Do you have to sign a buyer broker agreement? Are they even necessary?

The last few years, the real estate scene has witnessed a surge of buyer’s agents; agents that are strictly on the side of the buyer, ensuring they get a fair price and negotiation hassles are kept to a minimum. However, a couple of weeks ago a friend of mine forwarded me an MSN article called ‘10 Things Your Real Estate Broker Won’t Tell You,’ and while the writer made some fair points regarding the ethics of some agents, number 5 struck me as particularly thought-provoking. The headline read:

“Sometimes I forget who’s side I’m on.”

The sad truth is that may be the case for some buyer’s agents, but in defining the position of the buyer’s agent, they should be on your side, the buyer’s side. On the other hand, in terms of payment and commission, it’s normally the selling agent that pays the buyer (yeah, you read that right). Normally, a listing agreement between the selling agent and the seller specifies how much the listing brokerage will pay the selling brokerage for bringing a buyer. It does seem a little backward for the selling agent to pay the buyer’s agent to act on your behalf, and I think that’s where some buying agents forget who they’re working for.

Since most buyer’s agents don’t work for free (who does?!) and so many people are confused to how a buyer’s agent works, some agents request for their clients to sign a buyer broker agreement. There are three different types, but the most common is exclusive; it basically states that no matter what, you (the buyer) cannot buy a property without owing a commission to the agent. At first glance, that statement might seem harsh to clients, but it’s a way for buyer’s agents to protect themselves against people who want to take advantage of their services. I know a lot of buyer’s agents won’t work with people who hesitate to sign a buyer broker agreement, since it essentially means that the client doesn’t care if the broker gets paid. If you, as a client, feel uncomfortable signing something like that until you fully understand it, most brokers won’t mind if you ask to look at it over a weekend, so long as you approach it respectfully and seriously. You must also remember that this agreement does not stipulate that you have to buy a home, it only states that if you buy a home, you will work with the buyer’s agent. It can also stipulate that the seller is responsible for the commission and that you the buyer are not responsible.

With all of this in mind, what are the benefits of a buyer’s agent? Well, if you’re working with someone you trust and live a busy lifestyle, buyer’s agents cut out a lot of stress on your behalf. I know that it feels good to have someone working on your side with you as a priority; sellers receive that treatment, so why shouldn’t a buyer? But how do you know you can trust your agent? That’s where the internet comes in handy - look them up on ActiveRain, LinkedIn, Facebook, Yelp, and spend some time reading testimonials and websites. These websites are incredible resources for all clients; they can tell you a lot about your potential agent.

I hope this blog helped clear up some confusion regarding buyer’s agents and what they do. You know that if you have any questions, feel free to call us or visit our website by CLICKING HERE.

To see the MSN article I referenced, CLICK HERE.

Active Rain members - what are your thoughts on buyer's agents?

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Evelyn Bruder: CRS, GRI, ABR, E-PRO, Las Cruces Cyberstar

The Evelyn Bruder Dream Team http://www.homesforsaleinlascruces.com

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