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Buyer's Agents: Am I Missing Something?

I just finished reading Ines's featured blog Working Without a Realtor. There were 71 comments that I waded thru, and if you haven't taken the time to do the same, you should. Another excellent blog is Janie Coffey's The Benefits of Working With a Realtor That Specializes in Your Area. Ki Gray has written Why Use a Realtor?.

seagull

Now please don't get mad.

I'm a consumer with a question! This is not an attack on my agent friends here or any kind of personal charge, it's just a consumer question.

Photo by Mike Geraci of New Hampshire

What I'm learning so far at Active Rain is that a buyer's agent "represents" you, the buyer. They will:

negotiate the price for you
understand the local market
know the inventory and comparables on the market
be able to point out what's good and bad about the property
ease you through your buyer's remorse and emotional swings
be able to give you, the buyer, "the inside scoop"

This is my question: IF the sellers have disclosed honestly what the condition of the house is, IF the buyers hire a home inspector, IF a buyer spent the time researching homes that have sold in the area and studied the internet for what's on the market and for how long, what are they missing?

It seems to me "the inside scoop" may be private information that the seller doesn't want the world to know, e.g., divorce, death, personal circumstances that are no one's business. Or isn't privacy respected anymore?

Staged First Impressions, a NH Home Staging company.

Posted by Sue Argue - NH Home Stager on 09/10/2007 11:13 AM

Comments (73)

staged first impressions, nh, nh home staging, privacy

Post is included in group: Realtors®
Post is included in group: Live Free or Die

73 Comments on Buyer's Agents: Am I Missing Something?

SEP

2007

The Internet is not capable of evaluating a buyer's personal needs and their motivation in the buying process. It cannot counsel a buyer specifically on those individual needs that are unique to their situation. It cannot guarantee that a buyer will understand or fully comprehend what they see online. It cannot answer individual questions they may have about specific issues or concerns. These, among many other things, are "missing" from the process of getting all one's information off the Internet.

Your question is predicated on a lot of "IF" statements. Let's take this a step further. Is the seller a home inspector? Are they expected to know everything mechanical or structural about their home? Can a home inspector replace all the advice and counsel provided by a real estate licensee?

You ask "IF a buyer spent the time researching homes that have sold in the area and studied the internet for what's on the market and for how long, what are they missing"?

How well-spent was that time the buyer put in doing research? Does the buyer know how to evaluate what they've seen?
What and where did the buyer "study" on the Internet? Did those Internet sources make any warranty or claim about the accuracy of their advice? Does that advice make the buyer an expert on values in a particular area?
What do market times tell anyone in the midst of the subprime crisis, when we're seeing abnormally long market times in some areas due to external factors not linked to the condition of the home?

I don't know what the author meant by an "inside scoop". But I'd say your hypothetical buyer question can be readily answered. The human element in real estate counseling and the buying process won't easily be replaced by the Web or by any other robotic process. If it were that simple to eliminate the middleman and do it all ourselves, we'd have no more stock brokers, insurance salespeople, car salespeople, investment advisors, tax preparers, CPAs or attorneys.

Ask the buyer this.. How much time do you have to devote to doing this all yourself? What is your time worth? And if you have that much time on your hands, are you employed and do you have the financial means to be looking at property in the first place?

Well, heck, it looks like Eric already said it all while I was working on my reply!

So, what Eric said.

Also, what's wrong with having an agent helping the buyer? The buyer isn't going to get a better deal without one and there's power in numbers. One more person on the buyer's team is going be more beneficial than harmful. And who knows, the agent might even look out for your best interests.

Thank you, Tricia!

That has happened to me once already today. Sometimes it's a keyboarding speed contest to get your comments out there..

Eric's point about impersonal vs. personal is right on. When I have buyers come to me after they've spent some time looking on the internet, it's because they want to know the interpretation of those facts. They want a licensed professional to tell them the why's and not just the numbers.

Sue,

I think I would start by asking, "What are you asking?"
In every business relationship there are duties we have to our clients and as a Buyer Agent those duties are clearly outlined before we are ever licensed to practice Real Estate. That being said, finding out what a Buyers needs in a property, often has nothing to do with what they start out looking for. Bringing a buyer to different neighborhoods to look at the surroundings, getting them inside the homes ... these are basic, but nothing they can see "On-Line." Pictures do not speak a thousand words, they often only hide the blemishes!

If a Buyer not only has the time to do research, but to seek out FSBO's and Listing Agents that are only interested in showing them a home as a Selling Agent (Because, Sue, that is often how Realtors get Buyers to represent), then I wish them luck. And not only with the search, but the closing process as well.

And the little secrets... what Realtors learn from a listing.. it is called disclosure and an ethical Realtor will always keep their mouth shut regarding divorce, illness, etc., anything! The best approach is not to divulge too many personal facts at any point, to anybody. When a Buyer asks me why owners are selling, it's simple... "They are moving."

yOU ASK: IF the sellers have disclosed honestly what the condition of the house is,

What makes you think that they do and how does the buyer know how to interpret disclosures?

yOU ASK: IF the buyers hire a home inspector,

What makes you think that the buyer knows how to interpret the contract with respect to inspections, repairs, defects and disclosures?

YOU ASK: IF a buyer spent the time researching homes that have sold in the area and studied the internet for what's on the market and for how long, what are they missing?

Not a problem. All they need to do is go to real estate school, take and pass the exam, put their license with a broker for about 10 years, sell about 150 homes and they MIGHT, JUST MIGHT be able to do about half for themselves that which I would do for them.

Information is free, knowledge is priceless.

Lenn- absolutely loved your last paragraph, bolded. That about sums it up in conjunction with what Eric said.

Nice answers.

And everyone remember... the question was posed as curiosity, not an 'attack'.... you've all responded well.

Eric - "Did those Internet sources make any warranty or claim about the accuracy of their advice?" Very good point. "What is your time worth?" Another good point. Thanks for leaving such a well-written comment.

I often run into a highly knowledgeable buyer - but there is so much more to buyer agency than your highlights. Knowledge and experience is the key. And as a buyers agent we are not emotionally involved.

Tricia - thanks for the ditto :)

David - maybe a tad sarcastic, but point taken ;)

Nathan - interpreting the facts isn't always cut and dry. good point.

Cheryl - "They are moving." Period. I like that!

Lenn - Buyers may not know how to interpret a disclosure or other items in the contract.

Leigh - oh I like that quote, good one to remember.

Rob - :)

Rebecca - agents can conduct business sensibly without emotions getting in their way.

Well, how would the buyer know it's a good price? What about repairs and who will pay? What if the property doesn't appraise? What if your loan falls apart, but you're still held to a contract? I could go on and on.......

Jennifer, please do!!

Moderator: thank you very much for the feature.

There are many things a good Realtor does that the Internet can'y deliver.

Mystery guest - can you be more specific?

Hmmmm Sue...I like to keep things simple and have done "Hundreds" of "Limited Dual Agent" transactions and have a lot of very happy buyers and sellers.

Sue - way to start some controversy here!! I love it!

Here's the deal. A buyer might educate themselves to no end, but the experience an agent can offer, from closing hundred's of transactions is priceless. (should we make that a MC commercial or what?). I know buyers that are closing on their 10th property and still could not do it by themselves, why? because every transaction is different.

If it is a smooth transaction, I don't see a problem, but I can tell you that in the time I've been in Real Estate, I've only seen one of those and it was a "pinch me" moment.

-It's about negotiating, about interpreting the very vague seller disclosures (which don't provide half of the relevant information they should), about hiring the right inspector (here is FL is tough, since that industry is not regulated and anyone can call themselves a home inspector), about interpreting the inspector's results, about coordinating the transaction and deadlines (when to do the appraisal, have inspection, provide loan commitments, include second deposits, dispute findings, etc). Renegotiate price if necessary. All of that while you can place emotions aside and make sure that the home is right for you. One wrong move and you can loose a sizable deposit or worse, the house of your dreams, dare to take a chance?

Wow, Sue, I'm glad you asked, if for no other reason just to see the answer Eric wrote. Nice job Eric, maybe you could write a post about this??

Sue - To expand on my comment

1) Many buyers come to me and don't know where to start. I guide them in the right direction in terms of loan approval, home inspections, and what their legal right is in the contract. Not all home inspectors are created equal and depending on the type of property they are purchasing it will require a specific type of inspector and "Other" types of inspections such as pest inspections.

2) In many rural areas of Idaho we sell homes with septic tanks and private wells. The average buyer has no clue what to look for and what needs to be done regarding septic tanks and private wells.

3) When buyers buy acreages they have questions regarding splitting of the property and if they can do it or not. Having spent 5 years on the planning & zoning commission I advise them as to what can be done and what cannot be done.

4) I give all buyers specific information on certain areas regarding zoning trends, crime statistics, and environmental issues. They need to know these things before they decide on a certain area for their families.

I hope this helps

The other question that needs to be asked is "How many times has this buyer purchased a house?" The buyer gets the benefit of an agent's EXPERIENCE in the home buying process. There are so many ins and outs to it that some one that doesn't do it that frequently, couldn't possibly know everything they should know about it! Even if the person is a walking real estate encyclopedia - NOTHING TRUMPS the EXPERIENCE an agent brings to the table - even if it's just to play the devils advocate.

Sue, let me ask you something, hypothetically...

I am an attorney, and a nasty one at that... I represent your soon to be ex-husband (no prophecy intended) and so far, you do not have a lawyer...

I let you know that I am perfectly happy to handle the divorce without you hiring an attorney, which will save you money. I explain that since you have been married for several years, we are all sure you understand all the assets and liabilities in the joint estate... and since your husband filled in the form for his assets honestly (you would not want to accuse him of lying would you?) there is no need to get an accountant, or lawyer, to look into these matters on your behalf.

So, what is missing?

Even the best intentioned sellers do not consider all of the items that might be material to the buyer. In my area, they are not cognizant of community fees, Air Force flight and sound boundaries, gravel pits etc. The also may not care the property backs up to a busy street, or about the school district, or the 5 and 10 year plans for highways and parkways. If they don't have a small pet, they might not be concerned or even aware of coyotes and hawks. The list goes on and on.

One Word: Negotiation

I gaurantee my buyers that I will save them 3% on the market value of the home or I'll pay the difference. This year, I could easily say 4%!

If you have a Great Realtor, you'll never know it, as you got the deal you wanted (through their hard work), there were very few hiccups that you found out about and everyone is happy at closing.

Ines - unforeseen things come up during every transaction, and you can't predict what. Knowing how to word contracts to protect your deposit. Good points here.

Doreen - this is great stuff coming out here, you're right!

George - another very good point. When it comes to septic, wells, zoning laws, buyers need a lot of information. And they need to know which questions to ask.

In my 25 plus years of selling literally thousands of homes, disasters have happened to me on the way to closings and I've dealt with them successfully.

Most buyers typically are buying only the one house at a time and generally are unfamiliar with the laws, process, time frames, players, the market, and a bunch of other things that go into a real estate transaction, successful or not.

Let me ask you a question. Who rather you have helping you buy a house that typically represents the largest financial transaction you'll make in your lifetime; someone like me who is capable of dealing with anything that may come along and has; or yourself with advice from your buds at the office, and a "Home Buying For Dummies" book?

Do you think I could do a better job staging a house than you; after all I took a two day course and am a graduate of the class of last Wednesday. ;-) ???

Debbie - you can't get all you need to know about a subject from a book. Experience is a much better education!

Paul - you can't be that nasty :). Buyers need someone with experience looking out for their best interests. A lot is at stake! Good point.

Jim - an agent has a lot of local knowledge to share, not just real estate facts. Good points.

Sue, as in any situation that is presented to you in life, buying a home is something you are truely capable of doing on your own. You can also choose to represent yourself if you ever find yourself inside of a courtroom, but you're probably better off hireing an experienced atourney who knows what to do and expext in the courtroom. By utilizing an agent who is truely experience in their field (many are not, and will probably get you the same results as if you went it alone) you have access to knowledge that can only be gained through years of experience. For example, we are currently in a declining market. However, even though the majority of homes are declining in value, one can still make a killing in short term sales if they have an agent who can properly sift through the homes on the market and find homes that are not only drasticly below market value, but that will also create maximum desirability with minimal expenses. Unless you are a profesional Real Estate investor, finding this particular home will not only consume much of your time when compared to someone who already knows what to look for, but without having done this many times in the past, there's a good chance you'll make some wrong decisions then if you had someone to offer you advise and help guide you. It's kinda like painting, you can spend years researching every single method of painting untill you know all there is to know about painting. But, just because you have the knowledge, doesn't mean you have the experience to become the next Michelangelo.

Joshua J. - I've heard it said that if a ballerina can make the dance seem easy, they've danced well.

Jim Lee - It is a huge decision, buying a home. Not one to be taken lightly.

Joshua T. - Yes, buying a home is something you can do on your own. But I agree, it's not easily accomplished and there's a good chance you may make some serious mistakes.

Welcome to Active Rain. Good comment.

Jim... you and I both graduated in the same week... And I am sure I have forgotten in the last few days more than I knew... I have given up some knowledge to exchange for the space in my brain... I only have so much you know...

Sue: it is a big decision, and there are complexities and risks, which is why real estate is one of the most regulated and contested forms of property in the world... best to get someone with knowledge to assist you in any such deal... Jim Lee would be my choice if I were moving to his neck of the woods... fortunately I am happy living in a cooler, dryer place and dont have to move...

Seriously, a buyer can never know as much about the market as a full time buyers specailist who sees hundreds of homes and monitors everything being sold in a specific area.

Something comes up in almost EVERY transaction, and knowing the legal and acceptable way to handle it is of far more valuable than the potential of saving a buck or two by doing everything yourself.

Logan Utah Real Estate

WHY DOES A BUYER NEED AN AGENT? Let's try a true story: After months of searching, we find the "perfect" property for my buyers. They're coming in with about 50% cash. I know the market is changing and -- depite the previous year's comps, the property seems overpriced. My clients make an offer and the seller counters. The counter-offer is still pretty high. My clients want to accept. When I write the contract, I specify that the sale is conditioned on the property appraising for the sales price or better. As I suspected, it did not -- about $90,000 short. The appraisal demonstrated to the seller that his property was overpriced. Result: seller agreed to negotiate the difference. Absent the condition, my clients -- who could easily qualify for the mortgage since they only needed 50% of the sale price -- would have had no negotiating power. A good buyers' agent can make all the difference.

Here's another: A call to the local school indicated my client's children would attend School A -- right around the corner. A few weeks before closing, my clients discovered their children would be the only ones in their new neighborhoo attending School B -- about 5 miles away. My clients were upset because their children are ages 5 and 7 -- so after school activities like birthday parties, etc. would be a problem. They were tearfully considering cancelling the contract. As the buyers realtor, I contacted the schools Super and learned that the map was in error, but there was no plan afoot to correct the error. I then asked the seller to contact the Super and ask that the map be corrected immediately. After may tears and much cajoling, the Super agreed to have the map corrected and my client's children are now happy students at their neighorhood school.

And another: Met a buyer -- who is now a friend-- who told me the following: Five years ago, she bought a FSBO. The seller "seemed like a really nice man" who said he could offer her a better deal since he wasn't using a realtor and she didn't need one either. He said she could save even more money since she didn't need an inspection because he had just "renovated the whole house, from the electric to the plumbing." She paid $475,000 for the property; 3 weeks after she moved in, the plumbing in the finshed basement sprung a massive leak. She lost 2 chiars she'd planned to re-upholster and, worse, all of her photo albums which were still in boxes! Turns out her DIY seller had installed the new plumbing incorrectly -- a fact that would have been discovered before the sale by a licensed inspector. And of course, if my friend had a realtor, that realtor would have strongly recommended a home inspection. Cost of not having a realtor, and no inspection: $23,000 for repairs. Worse? A review of the "solds" in my friend's town when she bought reveals that the comps for the house put it at about $445,000 -- about $30,000 less than she paid!

I don't get it, Sue. On one hand you advocate honesty by the seller and seller's agent, but on the other you want to omit information that might legitimately affect the price in the name of "privacy?" That ought to tell you right there that there are two sides to every story and the buyer better have his or her own expert in there weighing the available information on the buyer's behalf.

Sue - Eric, Lenn, Jim and others have all very eloquently stated things so well, and there is so much more that is intangible that we do as licensees representing our respective parties. Many years of experience, courses, on-the-job-training, networking, etc..... far too much goes into doing our jobs well to ever have it be simply summarized, but there's certainly some great info here in the comments.

Is this info gathering for the course you're teaching about people selling their homes?

Simply put.....like the bible says, "You cannot serve two masters."

Miss Sue...

Way to put it out there :)

TLW...ROAR!

Hello I am an ABR (Accredited Buyers Representative). This designation is held by REALTORS that wish to specialize in working for buyers. The best reason to use a buyers representative when buying a home can be found at www.rebac.net. I hope you find this helpful.

There are some great answers here Sue. Real Estate is a people business and the Net will not be able replace the years of experience, common sense and know how that many of us have. Teri posted some real life scenarios. In those cases the consumer lost by going it alone. You have some great info to use in your seminar Sue. Are you having a REALTOR present that night?

I forgot one.

You wrote: "Or isn't privacy respected anymore"?"

is a euphemism for "caveat emptor".

Which is the primary reason buyers agents exist.

This post is disturbing because it is probably such a common perception. People tend to minimize what professionals actually do to represent them - so much of it goes on beyond the scenes and I don't pick up the phone and brag to my clients every time I do something clever that either saves their hide or their pocketbook . . .

The last statement alone about "privacy" speaks volumes. Most buyers probably don't understand that the seller has a DUTY to disclose all material facts, including death (for a minimum of three years in California).

A buyer's agent can negotiate, interpret, counsel, strategize, and that is all for starters. It makes me angry that our value is so invisible to the general public, yet I can't think of how to remedy this because who would want to hear all of the gory details about what goes into making a successful transaction?

Just from my perspective Sue it appears you heard a wide range of responses. I only speak for myself but I like it when a buyer is well informed. I like it when they hire a home inspector. I like it when they buy the homes I represent.

Now not all of the homes are worth what buyers pay for them....but that is not my problem they have done the research they know the value of the neighborhood. They did not know the value of the home they purchased. I had it staged to show better. It was smaller square footage, smaller lot and priced like the other large properties. "So" advantage Realtor....making a property appear better to gain a higher price from buyers with a preconceived notion of market value.

In most cases a buyers agent would have seen through my little staging but also told them it shows better than the other homes. They probably would not have over paid for a property.

I can also tell you I represent buyers all the time....with 15 years as a licensed builder I see more cover up and un-professional repairs than most inspectors notice. I point them out to my buyers. If the repair does not affect structural integrity and we can discount the purchase price we may go for the home "if" it fits the buyers lifestyle and personal needs.

I like it Sue, when the buyers are informed and I am the Sellers representative. Nice post.

I like how this post really stirred the pudding. Tell the truth, you did it on purpose, didn't you? Just to see what kind of response you'd get?

I actually agree with the premise of your question: "IF the sellers have disclosed honestly what the condition of the house is, IF the buyers hire a home inspector, IF a buyer spent the time researching homes that have sold in the area and studied the internet for what's on the market and for how long, what are they missing?"

But the thing is, most buyers, especially first time buyers, are not as astute as your question implies. Most don't even know what they don't know. And I'm not knocking a buyers intelligence. They may be fine engineers, or doctors, or college professors but completely ignorant about real estate. Seller's agents may be completely honest but are often bound by law to guard sensitive client information and while they are required to disclose material facts they don't have to say the local custom is for sellers to pay all the closing costs or something similarly important and unique to the market.

What if they just breezed in to town on a transfer and they have 2 weeks to find a house...., Learn the trade and buy a home in 2 weeks? If there were such a buyer as you describe maybe they could match a local agent, but I doubt it and since the seller most often pays the commission why would they want to?

Kudos on your featured thought provoking post Sue! I'm the fly on the wall who is reading and learning here myself. It's been eye opening and passionate to say the least.

SEP

2007

Doreen, thanks very much for the compliment! I think Sue has done a super job of getting Rainers to contribute their comments.

I may come up with a related post sometime in the next week or two. In the meantime, I'm happy to watch Sue bask in the rewards of a truly great post!

Buyers do help negotiate but it's much more than that. And trust me, those agents that beat my sellers down and then nickel and dime them to death to justify their own ego, I remember you and if I ever sell one your listings goes around come around.

What a buyers should do is simplify the process and ensure all legal points and timelines are met. A buyers will turn a stressful process into an enjoyable one. A buyers agent can help a buyer select qualified individuals to do inspections, title transfers/seaches, etc. A buyers agent can help improve the odds of making a good investment because a home is an investment. A good buyers agent can protect a buyer from predatory lenders and unnecessary charges.

Most importantly, a good buyers agent will be there if any problems do arise. We can increase the odds that those little problems are handled and don't become big problems. Sometimes, you the buyer don't even know they were there, we fix it and don't stress you out. We help make sure you actually close on the home you want to buy.

Lenn- Don't hold back now! LOL

Sue, when it comes to negotiating a buyer who is acting alone, is less likely to know the finite details us experienced REALTORS® have acquired through licensing and experience.

The New England spirit is unique in that the independence fought for from the American Revolution on is still there. Even you State Motto, Live Free or Die demonstrates that.

However, contracts are legally binding. While the mechanics to a sale are relatively cut and dry, there are caveats that could put a less informed party at a distinct disadvantage. I think your question is a good one.

For those of us who work as Buyers Reps, it is at no cost to our customers. Sellers pay the commission. So the question is, why would not NOT take advantage of using a professional when there is no cost to you as a consumer for doing so?

Paul - thanks for stopping by twice!

Alan - good input.

Teri - thanks for sharing your horror stories with us!

Tracy - it seems that privacy and disclosure laws vary from state to state, and perhaps agent to agent?

Ann - yes, there are so many grumblings about real estate agents, it's helpful to know the facts and how to present them in simple terms that people understand. That's what I was looking for here.

Eric - your comment keeps it simple and easy to relate to.

TLW - you visited my post! Well thank you :)

C J - thanks for link.

Monika - yes, I am. There are some great answers here that really explain things in simple, easy terms.

Eric - your comment keeps it simple and easy to relate to.

TLW - you visited my post! Well thank you :)

C J - thanks for link.

Monika - yes, I am. There are some great answers here that really explain things in simple, easy terms.

Lenn - ok I'm providing a link so we know what caveat emptor means. "Let the buyer beware."

Deborah - your comment hits the nail on the head. It is disturbing what people are saying about Realtors. But if you read between the lines in some of these comments, you'll feel the tension, the anger and fear that many agents have when questioned about their worth & value. The folks that wrote simple, confident answers are NOT the ones getting quoted in the media.

Gary - it makes sense that confident knowledgable buyers have less fear & apprehension that can hinder a smooth process.

Ron - ;) You are right.

Karen - you're my favorite fly.

Eric - Thank you for the compliment and for coming back again!

Brandon - thanks for stopping by today.

Allison - ahh, the New England frugal spirit and dry sense of humor. I think the answer to your question is that buyers believe they'll get a better deal on the house if there's no buyer's agent. That is talked about in Ines' blog that is linked here.

Sue, looks as if you opened up a can of worms! Great information posted here by AR members. I can say that I meet people quite often who decided to "go it alone" and ran into problems. After these folks run into trouble, then they want to come to a real estate professional to dig them out of their messes. It's too late then! As others have said, it doesn't cost the Buyer anything extra typically to have representation--so why NOT use it? Some Buyers are under the false assumption that they'll get a better deal on the home, however.

To be honest, almost every FSBO I have encountered is overpriced. If a buyer walked into that situation, how would they know. We all know that Zillow comps are flawed, and even the county assessor gets it wrong every now and then. Buyer's Agents advocate for the buyer and no one else. Confidentiality is another big thing to consider. I am not a lawyer, but I sure wouldn't go into a court room without one just to save a few bucks. Nor would I perform surgery on myself because I found out how to do it on the Internet.

Darleen - Ines' blog did a great job setting people straight...buyers won't get a better deal without an agent.

Jennifer - FSBO's have a lot of homework to do, yes?

Sue: This is a great question! I could write an entire blog, but would invite you to our website instead. You have a great list started here. I will add a few points here:

1. If the buyer calls the Seller's agent, to see a property, the Seller's agent is working for the Seller and has a "fiduciary duty" to look out for the best interests of the Seller. This means that any "confidential" information such as the motivation for buying or the price that the Buyer is willing to pay MUST be convened to the Seller as a matter of LAW. Buyers are not familiar about this duty and it usually will put them at a disadvantage.

2. Many agents use the same Purchase and Sales Agreement form for both Buyers and Sellers. The form may not contain protections for the Buyer. A Buyer's agent (or en exclusive buyer's agent) will have contingencies that better protect the buyer.

3. Many agents have been trained as listing agents only -- often they do not have the skill set necessary to advocate and "represent" the interest of a buyer.

4. The buyer many not have sufficient negotiating skills -- there is more than price to negotiate.

5. The buyer may not know how to research a property -- skilled buyer's agent will help them find their way to the building file, and obtain documentation pertinent to the property. Typically, the seller's agent will provide the deed, tax bill, and seller property information report (disclosure). There are other important documents that seller's agents typically do NOT provide.

6. The buyer may not have a clue which tests to have in addition to the home inspection, e.g., lead based paint, radon air, water testing if there is a well, flow tests if there is a well., septic inspections by objective inspectors etc.

7. Listing history of the property -- Buyer's agents can provide information such as when the property was first listed, changes in price (e.g. date and amount of price change), whether the property has been listed with another agency before the current listing, whether the property has been under agreement -- and if so, investigate why the transaction did not go forward -- etc.

I will leave it at that for now. I am glad that you asked the question!

It is important that each party to the transaction have a professional to look out for their client's respective interests with the goal of consummating a successful transaction.

With regard to confidential information -- a licensee has an obligation to keep their client's information confidential unless the client has given permission to divulge the information. However, a buyer may not even think to ask a question which the seller and/or seller's agent would be willing to share --or, by law must share, but only if asked (e.g. has there been a murder or suicide in this house?)!

The answer to your question is - Yes, you would be missing out on not having a professional trained in buyer representation working to insure your best interests are served. One should look for a buyer's agent with certification such as Certified Exclusive Buyer's Agent or Accredited Buyer's Agent.

It has been said very well in all of these posts. In fact most buyer's agents will fight for and get many things that the buyer would not have fought for themselves. Why, because the buyers' agent knows in the end what is most important in the real estate transaction. They will also be able to keep their cool when everyone else is losing theirs. Buying and selling homes is so emotional.

Hi Sue. I realize I'm a little late to this party, but here is my response.

I've watched hour upon hour of While You Were Out, Sell This House!, Trading Spaces, Filp This House, etc.

I've been to more model homes than I can count.

I've read all sorts of decorating and design textbooks.

Why in the world would I hire a decorator or stager? I can so do it myself.

That's what I do whenever a prospective client asks why they need me. I promise not to paint my house, pull my own teeth, fix my transmission, etc, if they promise not to represent themselves in a real estate transaction.

Buyers agents are the negotiater as well. Most people do not want to offer a price less than asking for fear of making the seller angry. So the buyer agent is the one who does this. Not to mention all the other things the BA will do better than an uneducated person trying to do the job that requires a license.

I can read about LAWS and understand them..However i would not represent myself in court!

There is so much more than can go wrong during a transaction, than inspection, and research on pricing. When that all gets stirred up (as REALTORS know) what will they do then?

Joan - thank you for your well written comment. Your explanation of "fiduciary duty" is easy to understand. I think one of the grayest areas is privacy, ie, what can be divulged, what can't, what must be told, who has the right to know what.

Your expertise and willingness to share make you a valuable resource here at AR, Joan. I appreciate your blogs & comments very much.

David - there are several great comments, you're right.

Michele - maybe there will be a reality show to teach you how to pull your own teeth while stranded on a desert island with rotten teeth ;)

Sherri - I thought low-ball offers were a problem right now...no?

Sue - great info here, and if this is being presented at your course, make sure to have the REALTOR give out this info so you avoid crossing the line into licensed brokerage activity. License laws are very specific and with the info here that has come out in the comments, it would be very easy to cross that line for someone who's not licensed to practice real estate brokeage.

Ann, thank you, I know my place.

SEP

2007

Great Sue! Good luck with your course.

Ann

Hi Sue: The licensing law in NH (and I think most states) is very clear on what is to be held private and what is not. It is a matter of education. Confidential information, may be shared if an agent has permission from the buyer or seller. If you would like more information on this, let me know. There is not really any gray. The New Hampshire Statute and Rules also clearly spell out what disclosures must be made e.g., septic, water, lead paint - you can review these laws and rules (or call the real estate commission and they have a "green" booklet which outlines all of these duties, disclosure and rules on confidentiality. If you would like some information from a veteran buyer's agent, I would be happy to assist (and I know an excellent one right in Portsmouth who is a member of AR (Carolyn Mcgee).

I also call your attention to Renee Burrows blog this week -- another reason it is good to have a buyer's agent assisting to verify information in the listing, and other documentation. MLS Integrity: I am really becoming disturbed by these trends!

Joan, thank you. I went over to Renee's blog, yikes that's scary. It would make me wonder... what else are lies?

The duties of an agent on either side is not only to find buyers or find listings, but also to walk their customer thru the process, meeting contingency deadlines and protecting their interests. And the best part from the buyers standpoint, is they get representation for free!

Sue: In case some consumers are reading this post, (including yourself) it is not true that buyer representation is always free. The buyer should check with their agent to find out about how fees are handled. It is not the same from State to State or even town to town.

With regard to Renee's blog today, I am not sure they are intentional "lies" -- however, it is important that they buyer have someone to lead them through the process to make sure they are getting what they think they are paying for.

SEP

2007

Ian - thanks so much for your comment.

Joan - I didn't know there was a fee for buyer's agents. In NH? How is that handled?

SEP

2007

Sue, rules are different in different states and even across the world. But in CA for example, we do need and have buyer's agents and seller's agents. It would be foolish not to have a buyer's agent just like it would be foolish not you have your own lawyer defend you in court. But sometimes agents get cut out because people are worried about their bottom line, but those people end up having problems with their homes after the purchase anyways.

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