What is buyer representation?
In easy-to-understand language, Buyer Representation is what every home buyer deserves and needs when making such an important financial decision as purchasing real estate. You need to work with an agent who keeps your needs first in the transaction. The agent should have no fiduciary duties to the seller.
Fiduciary duty means an obligation to act in the best interest of another party. Don't you want that fiduciary duty on your side?
If you go through any home with me (as long as I'm not the listing agent), you will receive full Buyer Representation. With the changes that occurred in August 2024, you will have to sign an agreement with me before I can show you any properties. This rule is for all REALTORS® nationwide.
I can tell you whether I feel the home is overpriced, and I can help you make a reasonable offer. I will perform a Comparative Market Analysis to let you see what similar homes have recently sold for to help you make your decision.
If I have knowledge of what the seller would accept, I will tell you this. Does this ever happen? Rarely, but if it did, I would be able to inform you. This could occur in a few ways:
- Maybe I already showed a property to an interested buyer. Let's say the asking price was $650,000, but my other buyer (Buyer A) decided to offer $625,000. The seller countered back at $635,000. Buyer A did not accept this counteroffer and purchased something else. The list price is still $650,000, but I can legally tell you that these sellers will most likely accept $635,000. This can't be guaranteed, of course, as every seller can change their mind. But by representing you I can give you this information. A listing agent would not tell you this.
- During negotiations, the listing agent told me how low the seller would go. That agent is wrong for doing this, but it has happened - because I took the time to ask. I would be able to pass this information along to you.
- I might have heard through another source that a particular seller is willing to accept a certain offer. I am free to tell you this information.
What is dual agency?
If you want to see homes through the listing agents, they will be a Dual Agent, which means they are not representing either party. They are more like a go-between. Most sellers do not want that. In today's market, with the changes that occurred in August of 2024, many listing agents are making buyers sign an Unrepresented Buyer Disclosure.
And that is just what it sounds like. They are not giving you representation. You will not receive fiduciary duty from them. They are fully representing their sellers.
What about open houses?
You will not be fully represented if you purchase a home through the listing agent at the open house. In that case, the listing agent is acting as a dual agent and cannot give full representation to either party. A listing agent is the agent that actually took the listing on a property and is the designated agent for the seller.
You might encounter another agent at the open house, and in many cases, these are newer agents trying to find buyers who are not under a Buyer Broker Agreement. If it isn't the listing agent at the open house, the agent most likely is working at the same brokerage. This is also considered Dual Agency.
If you go through an open house without your agent and purchase the home through whatever agent is holding the house open, you can be in trouble. Any agent sitting an open house should ask you if you have a Buyer Broker Agreement with another agent, as you could owe two commissions if you are signed with one agent and make a purchase with another.
The open house agent will not tell you whether the home is overpriced or not. They cannot tell you if they know what the seller's bottom line is. But they will try to get as much information out of you as possible to benefit the seller in case you make an offer, either with that agent or the agent you are under contract with. That is why it's always best to go through an open house with your agent. They will protect you from a prying listing agent or the agent holding the open house.
If you go through any home with me (as long as I'm not the listing agent), you will receive full Buyer Representation. I can tell you whether I feel the home is overpriced and I can help you make a reasonable offer. I will perform a Comparative Market Analysis to let you see what similar homes have recently sold for to help you make your decision.
I hope this explains to you how important full Buyer Representation is. If you have any further questions please call me at 480-906-1500 or Contact Me.