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Why You Need Your Own Buyer’s Agent For Your Next Home Purchase In Portsmouth, NH

By
Real Estate Agent with RE/MAX Shoreline New Hampshire & Maine

Buying a home is usually the largest purchase and financial commitment most people make in a lifetime. The process of finding and buying a home is both exhausting and complicated. For those reasons, you should find an experienced, local REALTOR in Portsmouth, NH, like Jim Lee and Ann Cummings from RE/MAX Shoreline, to guide you through the process, represent only you, and ensure your best interests are protected from start to finish. Here’s why Ann & Jim are your best choice.

Source: NAR 2023 Profile of Home Buyers and Sellers

Typically there are two REALTORS involved in a real estate transaction.

1. The Listing Agent works directly with the seller and represents them.

2. The Buyer’s Agent works with the buyers and represents them.


Both agents are legally bound to represent only the interests of their clients, the buyers and sellers.
Some buyers make the mistake of contacting the listing agent and asking them to show them a home they are interested in. Buyers often think they can “get a better deal” if they work with the seller’s agent.

There are several reasons why that can be a costly mistake


In New Hampshire, by state law, consumers, including home buyers, MUST be presented with a “Brokerage Relationship Disclosure Form” which lists the duties real estate licensees owe to both a customer (not a client) and a client. A client is anyone who has signed an agency representation agreement to represent that client in a real estate transaction. This agency disclosure form (which is not a contract) MUST be presented to all consumers at the time of the first business meeting and before the discussion of any confidential information.
A seller’s agent has theoretically already presented this form to his seller client when they all signed the listing agreement to market the seller’s house.
If you do choose to work with the seller’s agent, your choices of being fully represented are nonexistent. A seller’s agent can help you buy his seller client’s house with these agency choices:

  1. Seller Agency – “The licensee has the duty to represent the seller’s best interests in the transaction.” You are not represented.
  2. Single Agency – For all practical purposes, the same as a Seller Agency. You are still not represented.
  3. Disclosed Dual Agency – A disclosed dual agent is a licensee acting for both the seller and the buyer in the same transaction and with the knowledge and written consent of both parties. The licensee cannot advocate on behalf of one client over the other. You are not fully represented
  4. Facilitator – A non-agency status in which the licensee is not an advocate for either party and can only perform ministerial acts such as showing property, preparing an offer, or other customer-level services listed on the first page of the agency disclosure form. You are not represented.

None of these choices allow a licensee to fully represent you, the buyer.

Here Are Some Common Pitfalls When A Home Buyer Works Directly With The Listing Agent.


• If the listing agent is only representing the seller then they cannot by law be representing your best interest at the same time. On the other hand, if you have a buyer’s agent on your side, their loyalty and obligations are only to you and your interests.
• If the listing agent is only representing the seller, they cannot give you advice on how to structure an offer, what to offer, or answer any of the dozens of questions buyers often have during a transaction.
A bias and attendant liability can be created if one side does not feel fairly or fully represented. That can cause an increase in liability for a licensee who is working with both a seller and a buyer at the same time.

Source: 2023 NAR Profile of Home Buyers and Sellers

 


Why Can’t I Just Get An Attorney To Represent Me?


An attorney’s job in a real estate transaction is to ensure you are well protected contractually with a strong purchase and sales agreement. In New Hampshire, our purchase and sales agreements are prepared and reviewed by attorneys to make sure they comply with existing state and federal laws. Real estate licensees merely fill in the blanks on these preapproved forms.
Attorneys do not help you in the home selection process nor do they visit the home with you.

Additionally, the licensee you choose to be your Buyer’s agent typically works in the area you’re buying and is familiar with local values, customs, and other things related to a transaction that attorneys do not do.

An Accredited Buyer Representative (ABR) is specially trained to represent homebuyers.


Some ask; “How Much Does A Buyer’s Agent Cost?” But a better question might be; How Much Does NOT Having A Buyer’s Agent Cost?”


There is a cost to hiring someone to act solely on your behalf. First of all, real estate commissions are fully negotiable between the licensee and their proposed client.
Often the seller’s agent has already agreed to share the fee the seller is paying them with the agent that brings the buyer. If that fee does not cover your buyer’s agent fee, you can instruct your buyer’s agent to make any additional fees a part of your offer to purchase just like you can negotiate with a seller to leave items with the house. In any event, you will know exactly what amount you will be responsible for before you sign anything.

What Are Some Things My Buyer’s Agent Can Do For Me?


Glad you asked, here are just a few from a very long list:


• Assist in finding a local lender and helping you get prequalified for your purchase.
• Discuss various financing options currently available such as FHA, VA, Rural Housing, Jumbo Loans, and others.
• Identify your wants and needs in a new home.
• Network with other local agents for homes not yet in the MLS, aka “coming soon”.
• Help you select for viewing only those homes that fit your wants and needs.
• Assist you in analyzing the pros and cons of each property.
• Assist you in evaluating properties for suitability, affordability, and resale value.
• Educate you on whether we’re in a buyer’s market or a seller’s market.
• Provide you the latest market data such as days on the market, list price to sold price ratios, closed prices, and other current market data.
• Guide you in preparing a purchase and sales agreement to make an offer on a property.
• Help you create a negotiating strategy.
• Ensure you receive and understand all required state and federal disclosure forms
• Prepare you for multiple offer situations and develop negotiating strategies relative to multiple offers.
• Recommend inspectors, lenders, attorneys, and other professionals as necessary
• Be an advocate and advisor during the closing process.
• Review and discuss home inspection concerns.
• Monitor and communicate required contract deadlines to ensure they are met.
• Accompany buyer clients on the final walk-through before closing to ensure the property is in the same condition as when contracted and that all contingencies have been met.
• Remain a life-long trusted advisor for real estate questions, needs, and concerns.
And lots more.

Your buyer’s agent wears many hats.

Finally, you should make sure the real estate licensee you hire to be your buyer’s agent is a REALTOR which means they are members of the National Association of REALTORS (NAR) and have pledged to abide by their strict Code of Ethics. Not all real estate licensees are REALTORS.


REALTOR members of NAR can also earn advanced designation to enable them to better represent clients. Two good ones to look for are:

  1. Certified Residential Specialist (CRS) – The CRS designation is the gold standard in residential real estate and ensures that a designee has received advanced training, has a proven track record of experience, and is continuously improving their skills in an ever-changing real estate environment.
  2. Accredited Buyer Representative (ABR) – An ABR designee has undergone specialized training in working with buyers, also has a proven track record of representing homebuyers, and has proven experience in that field

Ann Cummings & Jim Lee, REALTORS, 2004 & 2017 NH REALTOR of the year,Ann Cummings & Jim Lee, REALTORS, CRS, ABR

Give us a call today and let’s get started on your journey to homeownership.

Posted by

Jim Lee , REALTOR®, Certified Residential Specialist (CRS)

http://JimLee.com  RE/MAX Shoreline

100 Market St., Suite #200, , Portsmouth, NH 03801 Phone: (603) 431-1111 x3801

Visit New Hampshire Maine Real Estate.com to search homes, get Seacoast area information, and find out how great living on the New Hampshire and southern Maine Seacoast really is.

 

Follow RealtorJimLee on Twitter

Show All Comments Sort:
Sham Reddy CRS
Howard Hanna RE Services, Dayton, OH - Dayton, OH
CRS

Thanks for sharing Jim and Ann!!!

Buying a home is usually the largest purchase and financial commitment most people make in a lifetime. The process of finding and buying a home is both exhausting and complicated. 

Mar 11, 2024 04:29 AM
Jim Lee, REALTOR, CRS

Thanks Sham. 

Mar 11, 2024 06:14 AM
Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

Great stats for using a BA, Thanks for sharing and enjoy your week!

Bill Salvatore, Realtor- Arizona Elite Properties

Mar 11, 2024 05:25 AM
Jim Lee, REALTOR, CRS

Thank you Bill, I hope you enjoy your week as well. 

Mar 11, 2024 06:15 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

You sold me me! Buyers should definitely be calling you when its time to purchase a home in Portsmouth, NH as a buyer's agent!

Mar 11, 2024 07:51 PM
Jim Lee, REALTOR, CRS

I would be honored to be your buyer's agent, Dorie. You would love the New Hampshire Seacoast. And lobster is $4.99 in the grocery store, steamed free while you shop. 

Mar 11, 2024 08:59 PM
Constantine Isslamow
RE/MAX HALLMARK Eastern Realty - Peterborough, ON
"Training and Accountability"

Outstanding information. Thanks for sharing all these graphs with us. Although from Canada, many of these principles apply to us also.

Cheers

Mar 12, 2024 06:00 AM
Jim Lee, REALTOR, CRS

Thank you, Constantine. Those graphs are from the 2023 NAR Profile of Home Buyers and Sellers. 142 pages of great information from actual buyers and sellers who respond to NAR's annual surveys. I get one every year to see what trends are and what buyers and sellers are looking for. On sale now at NAR.Realtor for $19.95. Some encouraging trends: first time buyers numbers are up and best of all, 89% of both buyers and sellers used an agent in their transaction as opposed to FSBO and 'other' (whatever other means). https://bit.ly/3THLiQx

Mar 12, 2024 06:17 AM
Leanne Smith
Dirt Road Real Estate - Golden Valley, AZ
The Grit and Gratitude Agent

Congratulations on a well deserved feature.  Yet if ethics is so important, then why is the data from Gallup regarding trust of professionals has real estate agents not very high.

Mar 12, 2024 06:47 AM
Jim Lee, REALTOR, CRS
RE/MAX Shoreline - Portsmouth, NH
Buying or Selling? Ann & Jim are the local experts

Thank you for your comment. 

Mar 12, 2024 06:59 AM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Yeah, Jim, I feel like that expertise can be easily replaced, because every single agent has their own experience in that way.

Mar 12, 2024 03:23 PM
Jim Lee, REALTOR, CRS
RE/MAX Shoreline - Portsmouth, NH
Buying or Selling? Ann & Jim are the local experts

Thank you for your comment. I don't understand what you mean. Are you saying a Realtor's experience and expertise can be easily replaced?

Mar 12, 2024 03:41 PM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Hi, Jim Lee, REALTOR, CRS, ABR 

 

    Long answer here...

   I started practicing Exclusive Buyer Brokerage in 1993.   Just like you, I advocate it 100% for a Buyer.  Purchasing a house can be a minefield, it involves a 12-page standard contract plus various additional pages of addenda.  You may not need attorney review for purchasing a single family home, but you the Buyer should have someone in your camp who can guide you through that minefield!  

 

It's great that New Hampshire requires a disclosure.  I am staying at our South Carolina home; that State also has a mandatory "Agency Disclosure".

  But my home state of Florida?  Nope.  The Statute reads, "Presumption of transaction brokerage.It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer."

   A "Transaction Broker" has NO FIDUCIARY.  They represent nobody.  You can read the details in the Statute that I linked to at the bottom of this comment.

 

   To compound matters, the Florida Realtors Standard Form "Exclusive Buyer Brokerage Agreement" misleads the Public (in my opinion).  It merely protects the commission of the Real Estate Broker/Agent.   Unless the correct box is checked and initialed, and a Single Agent Notice* is signed, you the Buyer get nothing.

   *Unless a separate "Single Agent Notice" is given to a Buyer, there is no Fiduciary.  The Agent does NOT represent you, they are not loyal to you, you do not have complete confidentiality regarding the transaction.

  

   It is frustrating to hear a Buyer say, "My agent", when that agent does not legally represent the Buyer. .  Same for Sellers who do not understand the concepts of Representation, Fiduciary, Loyalty, Confidentiality.

 

   One final comment:  When I "compete" for a Buyer or a Seller, and the competitors are operating as Transaction Brokers, I explain this to the party.  A line I have used to help them understand it:  "Most real estate sales go smoothly, the Buyer brings the money, the Seller signs the Deed, everyone goes away happy... but there are those unfortunate times when a Lawsuit follows later.  If that were to happen to you, and you are in Court, who will "your" Agent be sitting with?  You, or the other party?  Or will they be sitting alone, because they don't have a Fiduciary with either of you?"

 

   For complete details on how it is done in Florida, see     The Florida Statute on Authorized Brokerage Relationships

 

Mar 12, 2024 07:36 PM
Jim Lee, REALTOR, CRS
RE/MAX Shoreline - Portsmouth, NH
Buying or Selling? Ann & Jim are the local experts

Thank you for your comments Fred. I agree with you that it is up to us to explain how an agency works and what it take to hire one. Unfortunately many consumers, and sadly, some of our fellow Realtors don't understand the concept. 

Mar 12, 2024 08:04 PM
Brad Andersohn
Retired Executive Director of Education at eXp - Boulder Creek, CA
ActiveBrad - 707.646.1876

Love it! Great to see you both and congrats on the feature!

Just swinging by to say hi as I begin to pack my brain with all this daily new knowledge from you guys and from Activerain! ;-) 

Mar 13, 2024 11:29 AM
Jim Lee, REALTOR, CRS
RE/MAX Shoreline - Portsmouth, NH
Buying or Selling? Ann & Jim are the local experts

Thanks Brad, it was great to see you and a lot of the old gang. Best to you. 

Mar 13, 2024 11:47 AM
Mary Hutchison, SRES, ABR
Weichert Realtors, Welch and Company - Kansas City, MO
Experienced Agent in Kansas City Metro area

Excellent points.  Buyer agency is going to change this year, I wonder how many first time buyers will want to pay for representation if the seller won't compensate.

Mar 16, 2024 08:58 AM