Most home seekers don't understand the importance of having an Exclusive Buyers Agent look after their best interest when purchasing a home. The most important thing to realize is that all these features are available to you without you incurring additional costs! Exclusive Buyers Agents are paid at closing out of the proceeds of the transaction just like any agent except they are there to help you! Imagine you get the protection of their services and experience without any extra fees!
* They negotiate the best price possible since they aren't working for the seller.
* They sign a contract to represent only you and your best interests
* Using the criteria you provide they search all possible listings and properties.
* With their experience they can point out the strengths and weaknesses of each property.
* Give you the truth about a properties value, not its perceived value in the eyes of the seller or listing agent.
* Help guide you for property inspection and warranties
* Offer advice on how to make offers on properties.
* Submit offers promptly and professionally.
* Provide honest and complete financial information about neighborhood properties and how this can affect your future.
* Respond honestly and accurately to your questions.
* Negotiate solely on your behalf.
* Assist in choosing the closing authority.
* Perform loan analysis from multiple lenders to find the most favorable loan for your particular situation.
* Review HUD-1 settlement statement for accuracy.
* Most importantly they keep your personal information private from the seller and other agents, something listing agents are obligated NOT TO DO!
What is "Exclusive Buyer Representation"?
According to an FTC study in 1983, 72% of all home buyers across the nation believed in error that the agent showing them homes was representing them. Since then most states have passed laws forcing agents to disclose who they represent.
An "exclusive buyers representative" is someone who solely represents buyers, someone who doesn't work for home sellers and never lists homes for sale.
Who needs an Exclusive Buyers Agent?
* Buyers re-locating to a new city
* First time home buyers
* Buyers interested in maximizing their purchasing power
* Buyers looking for a lot and/or builder
* Buyers who want to protect their investment
How do they get paid for its services?
There are several options and they are all up to you. Most buyers pay the same way other agents get paid with the commission paid at time of closing which is divided between the listing agent and their agent.
You will not pay (incur) any additional cost or fees for their services. They are paid at closing out of the proceeds of the transaction. The main difference being that their portion of the commission is paid on behalf of The Buyer and comes from the proceeds of the transaction. This is clearly stated in your contract and secures your representation.
Imagine you get the protection of their services and experience without any extra fees!
Why can you save me money?
By law they must negotiate the lowest price for their clients and reveal any information about how low the seller is willing to go.
They provide all facts about the sellers urgency to dispose of the property and any other favorable information to the buyer. This is information the listing agent is obligated to cover up!
Does these savings really make a difference?
Imagine a 1% savings when buying a home. That equates to thousands of dollars and the same is true when negotiating your mortgage loan.
What type of contract is involved?
Same as someone selling a home signs a listing agreement with an agent, you establish a contractual agreement by signing a buyer's agency agreement. This agreement insures they are accountable to you and your needs 100% of the time, not to the seller. This is something only an exclusive buyers agent can offer.
Does the legal responsibility of my agent matter to me?
Absolutely!Imagine going to court and allowing the prosecuting attorney to defend you...
Real Estate agents are responsible and accountable to their client. By law seller's agents must negotiate in the best interest of their client, share all buyers information with the seller and present the property in as favorable light as possible to make the sale no matter what. An Exclusive Buyer's Agent must negotiate in the buyers best interest, absolutely may not disclose personal information about the buyer and must reveal all known facts, positive or negative about a property. Remember to fully research when buying a property. Think of your lifestyle, location, transport and the cost of maintaining the house.
Isn't the agent showing me homes representing me?
An agent who lists property usually signs a contract to represent the seller and help them sell their property. Therefore the agent showing the home is likely working for the seller. To protect your interests you should have a written "Agency Agreement" signed by you and the agent that makes the agent accountable to you.Make sure that the contract doesn't allow the agent to change his affiliation or terminate the responsibility prematurely.
Why not choose just a regular Buyers Agent?
An agent that works for a company that lists homes for sale will likely be unable to offer you "full representation". You will likely be asked to sign a contract limiting their representation so they can represent both sides to the agents advantage. An exclusive buyers agent will never ask you to sign any document limiting your representation as all their efforts are focused on giving you the best possible service.