Buyer Agency Explained

By
Real Estate Agent with Cooper Spransy Realty

 

I want to quickly tell you about the advantages of Buyer Agency in the State of Wisconsin. The first thing to point out, is about 90% of sellers sign a listing contract with a Realtor. So nearly all Sellers have their own Realtor (the Listing Agent) that is working for them and looking out for their best interest.


Now if you want to buy the Seller's house, you probably do not want to be working with the Listing Agent. Because the Listing Agent is working for the seller. He is trying to get the HIGHEST price possible for the house. This is why you as a Buyer should have your own Realtor - a Buyer's Agent.

One of the great things about having a Buyer's Agent, is that you should not have to pay anything. You might be asking How does this work? Well, when the seller hires a Listing Agent, they agree to pay the Listing Broker a certain commission. And that Listing Broker will typically share the commission with any Buyer's Agent who finds a buyer for that particular house.

So essentially the Seller is paying the commission for both Realtor's involved with the transaction. One important thing to note is that the amount of commission typically does not change, whether or not there is a Buyer's Agent involved. Either the Listing Broker gets the entire commission, or he shares it with the Buyer's Agent.

I should note that you want to be working with a Buyer's Agent at the beginning of your home search. First of all, the Buyer's Agent only gets to share the commission if they are the one bringing you to the house. So it is important that you only contact your Buyer's Agent. For example, if you drive by a house you are interested in, DO NOT call the Realtor who has his name and number on the For Sale sign. That is the Listing Agent, and they are working for the seller. When you are interested in a house, you want to contact your Buyer's Agent, and he can setup a showing or get more information for you.

Here are the bullet points of what a Buyer's Agent will do for you:

 

*Send property info to you of listings that match what you are looking for. You can get emails as soon as new listings are added to the MLS

*Setup showings for properties that you want to view. They will attend these showings with you and answer any questions you might have

*Always be looking out for your best interest

*Take care of all the necessary paperwork and negotiations when it's time to write an offer

*Oversee the contract to close period. Make sure all contingencies are met and that your best interest is protected

And remember that this should all be FREE for you, because the Buyer's Agent will likely be getting paid from the Listing Agent.

I say "should" be FREE, because there are certain instances when the Listing Agent would not need to share the commission. And there is that 10% of sellers that don't have a Listing Agent. In those situations, there is a chance you would have to pay your Buyer's Agent.

When I sign a Buyer Agency agreement, I guarantee that my buyer will not have to pay a dime.

So, if you are looking to move to or within the Madison area, please call or email me and I would be happy to discuss further with you about Buyer Agency and your house search. You have nothing to lose, and your new house to gain!

If you would like to search homes in the Madison area right now, then go to: www.searchmadisonmls.com

 

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Rainmaker
440,629
David Zablatsky
Avant Realty Group - Needham, MA
Real Estate - Needham, MA

Seth,

 

Thank you you for your posting!

 

-David

Oct 23, 2009 12:13 PM #1
Rainer
209,706
John Wall
Realty Connect USA - Hicksville, NY

Here on Long Island the listing may or may not offer buyer agent compensation.  I don't know if it's the same by you.  As a buyer agent I inform my clients that all offers will be presented as including the buyer compensation.  But I do make sure they understand they will owe me money if they purchase a home while in contract with me.

Oct 23, 2009 12:19 PM #2
Rainer
5,319
Seth Peterson
Cooper Spransy Realty - Madison, WI

All Real Estate Agents that pay dues to the local MLS here in the Madison, WI area have an agreed upon arrangment that the Listing Agent will share the commission with the Sub-Agent (The Agent who procures the buyer...which typically is a Buyer's Agent).  The MLS data sheet actually says how much commission will go to the Sub-Agent (most of the time it will equate to a full payment).  So it's a win-win situation for buyers working with a Buyer's Agent, because the buyer gets full representation for free, and the agent still gets full payment.

Oct 23, 2009 02:42 PM #3
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Rainer
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Seth Peterson

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