An Often Misunderstood Concept in Real Estate Sales

By Don Clifford, REALTOR®
Realty Executives, TRI COUNTY

One of the most misunderstood concepts I see time after time in the real estate profession is the buyer agent and their relationship with clients. There are many people out there toiling needlessly in search of a home, without the guidance of an experienced real estate expert, simply because they are either unaware or do not understand how this relationship works.

In dealing with a potential buyer client for the first time, I often find their initial feeling is one of mistrust and fear. And this isn't necessarily unwarranted with the lot of unsavory and unscrupulous characters in the world. Many immediately clam up for fear that whatever they say will cost them money or will be used against them. Or if they do say anything at all, it is the traditional defense mechanisms; "We're just looking" or "We aren't ready to buy yet." It is not until I get the opportunity to fully explain agency responsibilities to them that the barrier comes down, a level of trust is gained, and a working relationship is allowed to form.

Now, for those of you that are unfamiliar with buyer agency responsibility or have found yourself in the uncomfortable position of avoiding realtors as described previously, let me explain two facts that, once understood, should give you a more positive perspective of buyer representatives.

First, a real estate agent's responsibility is to represent the best interests of their client. This is true of the seller's agent and also the buyer's agent. This is their moral, ethical and legal obligation! And it's one that all real estate professionals must adhere to. (Note: An agent can represent both parties but only with the written consent of both.)

Secondly, and this may be a surprise to some, the cost of a buyer agent is most likely already built into the listing price. How is this true, you ask? If a seller lists a property with a real estate agent, the listing agent's commission is factored into the price and agreed upon upfront. Upon the sale, the buyer agent is almost always compensated by splitting this commission with the listing agent; usually a 50/50 split. Therefore, if the commission is built into the list price, you are going to pay it regardless of having your own representation or not.

So, consider that when the seller lists with an agent, they have someone representing their best interests. The obvious question then becomes, if you are already paying the commission, doesn't it make sense to have someone looking out for you?

The moral of the story is this: If you are planning on looking for a new home (especially you first-time buyers), find a good real estate professional (I am available of course!!), trust them, use their expertise and get your money's worth! You will find their assistance invaluable.

For more information or questions on the responsibilities of buyer agents contact Don at 508-803-5028 or email him at donc@.DonCliffordRE.com.