What is a Buyer Brokerage Agreement?
A Buyer Brokerage Agreement is a loyalty agreement between the parties; namely Buyer and Real Estate Broker/Agent. You agree to employ a Broker and their Agent/s to exclusively represent you in your real estate purchase .
Buyer Brokerage Agreement
In the advanced age of technology and avid do it yourselfers you may feel that you really don’t need an agent to help buy something as simple as house. You watch HGTV all the time; or have friends or family members that have purchased homes in the past, and have an idea of the process, what to expect and how it should unfold.
Regardless of your level of knowledge; when it comes to purchasing a home or property; you should ALWAYS have an Agent represent your interests in your real estate transactions. Some of the advantages of signing a Buyer Brokerage Agreement and having a real estate Brokerage/Agent represent you exclusively are as follows;
- You have someone in your corner that is fighting solely for you and your interests
- You’re informed of new homes/properties before they hit the market. Your agent has direct access to the local MLS and can let you know if a home is really available or not
- Your Agent makes arrangements for you to see the inside of homes
- Your Agent will advise you on how much to offer based on current market conditions; how long the home has been on the market or if there are multiple offers
- Information on comps- what recently sold and for how much (this tells you the fair market price and gives you an idea on how much to offer)
- Fill out and explain the wording in the Contract. Contracts can and will change at any time. It’s imperative to have an Agent that can and will be on top of all and any changes; especially in the middle of your home purchase
- Negotiate on your behalf; not just price but whatever is reasonable such as; home warranty, termite bond; washer/dryer & other appliances; swing set; flat screen; home theatre etc
- Your Agent will follow up on and even meet with home inspectors, appraisers, and other vendors (this is extremely important if you’re more than likely to be busy with personal obligations such as your job; kids and life itself)
- Your Agent will remind you of important deadlines such as your due diligence period. Any missed deadline can make a contract null and void; as well as result in you losing your ernest money
- Your Agent will accompany you on your final walk through of the home before closing to make sure that everything is the way it should be according to the contract
- Make sure you receive and understand the HUD Settlement Statement and accompany you to the closing
- YOU HAVE NOTHING TO LOSE....the Seller usually pays the Buyers' Agent commission. In some cases if you purchase a foreclosure or auction property then you may be required to pay a portion of your Agents' fee; each situation is unique. Talk to your Agent about this during the initial meeting or consultation.
Buyer Brokerage Agreement
Your real estate agent is a wealth of resource that you should take advantage of. Agents not only have access to inspectors, surveyors, appraisers, general contractors, handymen, utility connection info, and the like; we actually work with these vendors "day in" and "day out"; so we have a good idea of who is good, really good, or mediocre. We also have working relationships with Lenders, Closing Attorneys, and Title Companies. Most of all; we have the real inside scoop on various neighborhoods because we live where we work for the most part.
At the end of the day; the Listing Agent represents the Seller and will negotiate the best price and terms for the Seller; who is their client. When you see a “for sale” sign in the yard; whether it’s a Brokerage sign; or “for sale by owner”; instead of dialing the phone number yourself; call your OWN Agent; NOT the Sellers' Agent; give him/her the information and let them do the rest......."You'll be GLAD you did!"