1. What is a Buyer's Agent? Aside from showing buyers the homes listed for sale in the local listing service(s), new homes and possibly For Sale By Owner (FSBO) homes in Georgia, a buyer's agent is an unbiased and independent licensed GA real estate agent who is focused on promoting the buyer's interests; this may include seeking out a lower price and better terms on the buyer's behalf.

2. What is a seller's agent (listing agent)? Generally speaking, this is a real estate agent in Georgia who has entered into a contractual agreement to sell the seller's home (for a commission) and to promote the best interest of the home seller; this usually entails getting the highest possible price and best terms on behalf of the seller. The agent with the "For Sale" sign in the front yard is the seller's agent and represents the seller in GA; it is important for a home buyer to be aware of this fact.

3. How are seller's agents & buyer agents compensated? On paper, and generally speaking, they are compensated by the predetermined commission or fee paid by the seller upon closing. Regardless of the negotiated price and terms of the transaction, the home that you are buying -- if it is listed by an agent -- has a predetermined commission, or fee, built into it; you could call it a marketing fee. Generally, the funds from this marketing fee are distributed to the seller's agent and to the buyer's agent at closing in GA. If you have opted out of buyer agency representation, then 100% of the commission is rendered to the seller's agent; or, depending on the terms of the listing agreement, the seller and/or builder retains the overage. Therefore, since this commission is built into the listed home that you are buying, shouldn't you have your own buyer's agent who is looking out for you?

4. Does this apply to Foreclosures (bank owned properties)? Yes. The banks hire agents to list and sell their foreclosed homes through the listing system(s) by means of the same process. In this case, the bank is the seller and the listing agent represents the bank.

5. What if I don't have my own buyer's agent? Generally, if you elect not to have a buyers agent represent you in Georgia, then you will possibly rely upon the seller's agent for every issue that will inevitably arise during the entire course of the transaction. Can you see the conflict of interest in that case? You are left to fend for yourself; and, depending upon the listing agreement with the seller, the listing agent retains the entire commission. While the buyer doesn't directly pay for the sales commission, they do bear a burden for the commission indirectly through the sales price. If you have handled much of the legwork when searching for a home, you may consider a buyer broker's commission rebate, which is a means to reduce your buyer agent's commission directly to you, the buyer; these are monies that can be credited to you at closing for your use, or issued after closing in the form of a check.

Note: If you have opted out of a buyer agency service in GA, it may be wise to hire your own buyer's attorney in that case. For clarification, the closing attorney in Georgia often times only represents the lender in the transaction, not the buyer. With the mortgage fiasco that has taken place, independent consultation may be a good idea.

6. Do I really need a buyer broker (agent)? Instead of giving my opinion about a buyer's agent, I will refer you to what HUD (U.S. Department of Housing and Urban Development) in Washington DC has written on the matter. Here is more information for first-time home buyers regarding this issue.

Lastly and probably most importantly, not all Georgia buyers' agents are equal. You should research and interview your buyer's agent in GA. You want a buyer's agent who will go to bat for you -- even against your mortgage lender when applicable; this may include checking for oversight or inaccuracies of the HUD-1 settlement statement. Contact me and I will give you a no-obligation over-the-phone consultation about my buyer agent service. Click here to learn about a discount buyer agent for resale homes; you can also read about my buyer's agent testimonials over the years.

* conditions apply, and this is only a general overview; each real estate transaction is unique and may differ in nature.