When I am with Buyers for the first time, many seem apprehensive to sign an agreement with a person they just met. And it is a subject which is often misunderstood. We want people to understand that they are entitled to representation, and should have someone on Their Side.
Exactly What Is Buyer Representation?
It is an agreement between the Buyer and Buyers Broker to “Represent The Buyers Best Interest”, and spells out the obligations and duties of both parties.
What Are The Brokers Obligations to the Buyer?
The Broker has a fiduciary duty and owes their loyalty to the buyer. The broker cannot disclose the buyers top dollar in negotiations or reveal other information which may be deemed ‘Confidential’.
What About Showings and Questions, Can’t I just Call the Number on the Sign?
You should schedule ALL of your showings and questions through your buyers broker. You want your broker to be on the same page, and by asking the listing agent, you could innocently reveal your negotiating position. The listing agent is obligated to reveal any information you reveal to them directly to the seller. They are bound by their agreement to get the best deal for the seller.
The Buyers Agent will make time to arrange showings in a timely manner, and will ease the burden of juggling multiple schedules with different agents. The other added benefit of working with just one broker, is that you only have to explain your situation once. Not every time you want to see a home and trying to work around peoples schedules.
Can I Get a Better Deal by Using the Listing Agent?
This is often not the case. Just because the listing agent will be keeping the entire brokerage fee, does not mean they will get you a better deal. The listing agreement binds them to the seller to get them the best deal possible. Not the buyer. In fact, there is certain information they CANNOT REVEAL TO THE BUYER UNLESS IT STRENGTHENS THEIR POSITION. Your Buyers Broker will be obligated to share certain information with you that the listing agent may withhold, such as recent sales prices of nearby homes!
Do You Really Have Access to ALL of the Listings??
Yes. If it is for sale by an agent, we have access to it. Most are through a digital lockbox requiring a special key making it easy and convenient to schedule you in. Some properties will require advance notice, some do not. We do like at least a few hours notice to gather information and make the appointments, afterall, not all homeowners have the same schedule.
Do I Have to Sign an Agreement?
It is highly recommended. Don’t you want to know exactly what and when your broker is doing? Without a contract, how can you be sure the Broker is really YOUR BROKER? View Bluefax Realty LLC Buyers Representation Package Here (opens in a new window)
How Long is the Buyer Representation Agreement For?
Usually 90 – 180 days, depending on your time frame. It is negotiable though, and ours may be cancelled by either party with 24 hour notice.
What Else Should I Know About a Buyers Representation Agreement?
We want you to be comfortable, so all decision makers should attend the first showing for the Q & A. A copy will be sent home with you to review and discuss. This is where we have a chance to get to know everyones expectations, desires and needs. We will also discuss:
- Loan Pre-Approval (required to even make an offer)
- Property Insurance
- The Contract to Closing Process (making an offer, getting inspections, protecting your earnest money deposit and more)
- Home Inspectors
- Scheduling Other Homes
- YOUR Schedule
- Ways YOU Prefer to Communicate
- And more…..
I hope this information helps, and please do not hesitate to contact us directly for any questions or information.
