Right now it is a battlefield in the real estate market. With extremely low inventories and buyers competing for homes with mutiple offers it is tough for buyers. Fortunately a home buyer does not necessarily have to go it alone. Home buyers can be represented by a buyer's agent.
Unfortunately home buyers eyes glaze over when talking about agency. But before ever looking at homes you should fully understand real estate agency and consider working with a buyer's agent.
A good buyer'agent will save you time, money and aggravation. You have too much at stake not to understand the intracacies of the relationship you have with the real estate agent you are working with.
But not only that you will be fully represented by someone who has your back!
So What Does It Mean To Be Represented By A Buyer's Agent
To be represented by a buyer's agent mean the agent is legally bound to you on a client level relationship. At the end of the day a buyer's agent must put your best interest before anything else.
Who else is represented?
- Lawyers represent plaintiffs- their sole job is to protect their clients rights
- Lawyers represent defendants- their sole job is to protect their clients righ
- Actors are represented by agents- their sole job is to get them the best acting gigs with the best pay and terms.
- Professional sports players are represented by agents- their job is to get their clients the best terms and pay for their client
So it goes with out saying that a home buyer who is represented by buyer's agent can expect a buyer's agent to help them find the best house they can for the best price and the least amount of hassle while serving the buyers needs.
Unfortunately It Is Not Always Clear Who An Agent is Working For
This is critical. Pay attention.
Typically in Massachusetts you have buyer's agents, listing agents and dual agents.
Just because an agent shows you a house or writes you an offer does not mean they are working for you. As a matter of fact they could be working for the seller. And, on top of it, you can be giving that agent information that can be used against you.
You should be provided with a disclosure disclosing the relationship you have with that agent. But, many home buyers just glaze right over and just want to look at houses, they don't care.
But you should.
Home buyers will either knowingly or unknowingly do directly to the listing agent to buy a home.
Somy buyers think that going to the listing agent will give them an inside track or will save them money. Unfortunately this is not the case in most situations.
Here is an infographic covering a few of the things a buyer's agent can do for you that the listing agent cannot.
A Buyer's Agent Has Your Best Interest at Heart
A buyer's agent has your best interest at heart. As a matter of fact the law states they must. They owe you obedience, loyalty, disclosure, confidentiality, accountability and reasonable care.
A buyer's agent I can tailor the services you need to suit your situation. Some home buyers contact me and need help them from A to Z. I help them make the decision to buy, line up financing show them homes, etc... Others may come to me part way thru the process and I help show them homes and bring the purchase of a home to a smooth closing.
A Buyer's Agent is a Home Buying Coach or Consultant
I tell buyers to think of a buyer's agent as a home buying coach or consultant. We are out in the real estate market everyday and have the experinece of 100's of transactions behind us.
A buyer's agent will educate you about current market conditions and how to handle them, give you the tools to methodically go about looking at homes, set up appointments, help you determine fair market value, right an offer help you prepare a negotiating plan, recommend home inspectors, negotiate home inspection repairs, etc...
We present options based on our expereince. But in the end it is up to you to make the decisions.
Like everything in life it is important to undersstand when you dont know what you dont know. But guess what when it comes to buying real estate a buyer's agent does know!
When a buyer uses mye like a trusted advisor, they are the ones who get the most out of their home purchase.
How Does a Buyer's Agent get Paid?
Here in Massachusetts the great part about using a buyer's agent is the seller pays for a co-operating agent like a buyer's agent. Your buyer's agent is being paid out of the proceeds of the sale as authorized by the seller.
So it doesn't matter if you use a listing agent, a transactional agent or a buyer's. An agent that brings a buyer gets compensated by the seller.
Summary
Here is an excerpt from a testimonial from a woman andd her family. I use this tesimonial to highlight what a buyer's agent should be doing.
"Kevin took us on when a few other relators turned us down. We we're buying in a sellers market which is not just scary, but REALTORS have their pick of clients. We had a very specific goal and did not want to buy over a certain amount. Kevin just said, ok lets do this! He never once pressured me to buy at full pre-approved amount, which we firmly did not want to do. He also (in a sellers market mind you) got a sold "as is" seller to fix things that I was sure they wouldn't. He got the condo association to take care of things I was sure they wouldn't and he took on tasks I never would have thought of..."
If this family had bought without using a buyers agent, they would have accepted their condo as is with some very costly repairs ahead of them. As I stated early most buyers don't know what they don't know. But I do. I took and made the most of their home purchase for this family. In the end they were very pleased and shocked how easy it can be.
But like anything not all agent are cut from the same mold, just like there are good car mechanics and bad car mechanics. Take the time to find a good buyer's agent. You willbe very pleased you did.
Other Resources:
Bill Gassett Who Represents Who In A Real Estate Transaction
Joe Boylan Understanding Agency Relationship in Real Estate
Kyle Hiscock Top 10 Reasons to Hire A Buyer's Agent
Kevin Vitali is a Tewksbury MA Real Estate agent that has been practicing full time for 16 years. Looking to make a move to Tewksbury or the Merrimack Valley? Call me at 978-360-0422
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