A recent Federal Trade Commission study found that over 72% of all home buyers nationwide mistakenly believed they were being represented by the agent who was showing them homes. As an outcome of this study, Real Estate License Law officials from all 50 states recognized the need for public awareness of buyer representation.

Consequently, disclosure laws requiring agents to specifically disclose exactly who they are representing are being passed all over the country. In 1989, The National Association of Realtors for the first time began requiring all REALTORS® to advise buyers who they represent in each transaction.

There are several ways for a Buyer’s Agent to be paid. The most common way is exactly the same way other real estate agents are paid: The typical commission paid at closing is usually divided between the listing agent and the Buyer’s Agent.

The only difference is that the Buyer Agent agreement says that the Buyer Agent portion of the commission can be paid by the seller “on behalf of the buyer” and comes from the proceeds of the transaction. This statement secures your representation and discloses your representation to the seller.

There is no need for you to incur additional cost for our services. When we as a Buyer’s Agent help you buy a home, our compensation comes from the proceeds of the transaction unless you choose otherwise.

Don’t count on it. Unless you have a written Agency Agreement, the Law of Agency, as defined by federal and state courts, specifies the contractual relationships that are formed when property is bought and sold. Agents listing property enter into a signed contract with the sellers to represent them in the sale of their property. This same contract permits the listing agent to use “sub-agents” to help secure a sale.

Unless you have a written Agency Agreement with a real estate agent promising to represent YOUR best interest, the agent showing you homes should be considered a sub-agent working for the seller.

Absolutely. If you had to go to court would you use the same attorney the opposing side was using?

Responsibility and accountability to a client are two legal requirements of representation. By law, selling agents must negotiate in the best interest of their clients, not withhold information from them, and must present their property in a favorable manner. A traditional real estate agent views buyers as customers, not clients.

Of course agents try to be fair and are nice to the buyer since they want to make a sale. But because they are bound by the law of Agency and their Code of Ethics, they can only do so much without jeopardizing their license to practice. For instance, traditional agents cannot tell you how much they feel a certain piece of property is worth, or how to negotiate the best purchase price. In this case “technically” means legally, and if the seller has representation, shouldn’t you?

As a Buyer’s Agent, we always negotiate in the best interest of the buyer.

Absolutely yes, and more. We belong to the local Board of Realtors and MLS, so we can show you homes listed with this service. In addition, since we represent you, not the seller, we regularly show homes that are “for sale by owner”, “for sale by builder”, government and bank foreclosures. Also, we often help buyers choose building lots and builders for custom built homes.

Just as sellers establish a legal relationship by signing a listing agreement with their agent, you establish a legal relationship with us by filling out a buyer’s representation agreement. This agreement makes us legally accountable to you and not the seller.

If you save $10,000 on the purchase of your home, The Buyer’s Agent would only earn approximately $150 less commission. Your goodwill and word of mouth advertising will be worth much more than this, not to mention their legal obligation to represent their client’s best interest.

A realtor representing the seller is required by law to reveal to the seller information concerning the ability or willingness of the buyer to complete the sale or to offer a higher price. Therefore, legally the seller’s agents must not only do all they can to sell the property for the highest price, but they must also inform the seller if you, the buyer, are willing and able to pay a higher price. This prevents agents representing sellers from promising to save you money on the price of the home.

Only agents who represent the buyer can work to get the buyer a lower price.