What is a Buyer's Agent and how do they differ from a Traditional Agent?
According to an article by Realtor.com
"Buyer Agents are legally bound to help buyers whereas listing agents the agents representing the home listing, have a fiduciary duty to the home seller."
When it comes to representation, home buyers have options
1. Most traditional real estate agencies have buyer agents. These agents work for Brokerages that represent both buyers and sellers. These buyer agents work for a Broker who represents the interest of people selling their home and people who want to buy a home.
2. Exclusive Buyer Brokerages or Exclusive Buyer Agencies represent home buyers-only. As members of the National Association of Exclusive Buyer Agents, the Broker and all associated agents must work exclusively for buyers as fiduciary agents and may never represent sellers and may never list properties for sale. In addition, Exclusive Buyer Agents follow the NAEBA Code of Ethics.
In most real estate transactions, the home buyer, and home seller have conflicting interests. The questions for buyers;
"Who is on your side?" Who will protect your best interests regardless of what house you want to buy?"
Are you looking for a Buyer's Agent?
Here are a few important questions to ask as you interview Realtors.
- How quickly will you return my phone calls, emails or texts?
- Are you an Exclusive Buyers Agent or a Buyers Agent? Remember exclusive buyer agents will be members of NAEBA.
- Will you make arrangements to get into any house for sale that I want to see?
- Will you show me your company listings?
How Much Should You Pay for a Buyer's Agent?
According to Realtor.com, the Buyer shouldn't worry about the expense of hiring a Buyer's Agent. The Seller pays the commission for both the buyers agent and the listing agent. Typically the details of this arrangement are worked out in the listing agreement. Your Buyer's Agent can show you exactly what their commission will be since it's printed on the bottom of every MLS listing.
Final Thoughts on Buyer's Agents & Buyer Agencies
Research your options before you begin the home buying process. Talk to a local lender and get pre-qualified or pre-approved for a loan. Your lender and your buyer's agent need to be in contact as part of your home buying team. Ask your buyer's agent for references and review their website. Your buyer agent needs to be an experienced negotiator and an easy person to contact. Communication is key to having a successful home buying adventure!
Links for more information
National Association of Exclusive Buyer Agents
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