BUYER'S AGENCY EXPLAINED
BUYER'S AGENCY - WHY DO I NEED IT?
A buyer's agency, means the agent is working with your best interests (and wallet). A buyer's agent will work to negotiate the best price and terms, ensure the property is inspected, and make sure you have the representation you need to be protected. The things you tell a buyer's agent always remain confidential, buyer's agents cannot tell the seller what your bottom line is and in not doing so can often get the property for less than what you expected to pay. A buyer's agents commission is usually paid for by the seller - when a listing is taken the listing/seller's agent negotiates the total commission for both the buyers and sellers agent. Sometimes but rarer in some cases the buyers agents commission is paid for by the buyer. Using a buyer's agent also means that you can be shown homes that are For Sale By Owner.
Often Buyers sign an Exclusive Buyer's Agency agreement which will dictate how the arrangement works. Similar to a listing, it sets out how much the agent will be paid, what the length of term of the contract will be, what areas the buyer wishes to look in, etc. Many Buyer's agents will not work without one of these in place as without it they have no security as to whether or not they are going to get paid for all their hard work. Also it tells the Buyer's Agent whether or not the buyer's are motivated to buy. (Don't get me wrong, it doesn't mean you MUST buy if they don't find what you want, it merely means guaranteed wage if they do) If you look at it from a professional agents opinion, why would they want to take you seriously and put in all that time, effort and energy into searching for places if you don't want to commit to working solely with you them? Think about that for a moment.
ANOTHER MYTH
Often buyers believe if they go to the listing or sellers agent they will get a better deal as the agent earns more, this is a possibility but also a misconception. Many listing agents will not lower their fee out of principal as they have a higher liability to represent both sides and this is especially true in multiple offers. The listing agent may NOT now by our Professional Ethics Code lower their fee to make their offer stick over others, without going to the other agents involved and telling them, so that they all have an equal chance to compete. This rule was brought in to protect buyers agents of underhanded dealings by listing/seller's agents representing both sides.
DO I REALLY NEED TO USE A BUYERS AGENT?
No, but my best answer to this is why not? Why would you want to do all that work and search out properties on your own, calling every agent directly, telling the seller's agent all your confidential information and so on? A bit awkward, no? Best advise is sit back and relax, let your agent do his/her job. Also, it usually costs you nothing and the best part is you get representation and confidentiality. Think about this for a moment, you wouldn't go to court & give away all your cards to the other sides lawyer so why would you want to do otherwise in a realty transaction?
If you would like Buyer's Representation on a real estate deal, call or email us today 604-584-7653 or info@fullerservicerealty.com