Hey Buyers!! Why you should have a Buyer's Agent!

     When you start working with a real estate agent to buy property of any type you really need to consider your Agency Relationship with that agent.  Agency is one of those things that a lot of buyers don't really think about when working with an agent.  Most people think if they have contacted an agent and the agent is showing them property, they are representing them and working on their behalf.  Its not so simple.


     When you start working with an agent Agency should be discussed.  An Agency Disclosure Form will be presented and it will list the types of agency and the responsibilities associated with them.  The types of agency are:

• Seller's Agent
•      Sub-Agent of the Seller
• Buyer's Agent
• Disclosed Dual Agent
• Transaction Coordinator

     When a seller lists their property with their agent they have created an Agency Relationship with that agent. The agent is then considered the "Seller's Agent".  The agent then has the fiduciary duty to act in the best interest of the seller.  That means the agent must disclose any information to the seller that has any relevance to their property and anyone interested in purchasing it.  So the seller has someone in their court looking out for them.  


     If you look at properties with an agent without signing a Buyer Agency Agreement most likely if you choose to purchase a property using that agent they will act as a "Sub-Agent of the Seller".  What that means is the agent you are working with is technically working for the seller.  According to the National Association of Realtors, the Sub-Agent of the Seller cannot do the following for a buyer without violating the duties owed the seller:

1. The agent cannot suggest a price to offer on the property
2. The agent cannot reveal information about the seller's situation that may influence the negotiation
3. The agent cannot assist in negotiating the sale on behalf of the buyer

     Those seem like pretty important things your "agent" can't do for you.  You have no one in your court.  The seller has 2 agents in their court.  Not very fair is it?


     If you sign a Buyer's Agency Agreement with your agent, that will even things out for you and you will have someone in your court looking out for your best interest.  A Buyer's Agent has the following fiduciary duties:

• Loyalty: To act at all times in the best interest of the buyer and to put those interest above all others, including yourself
• Disclosure: To disclose all known, relevant facts regarding the property and sellers motivations for selling and the willingness to accept a lower price
• Confidentially: To safeguard the buyers motivations and willingness to purchase a property
• Reasonable care and diligence: To diligently use real estate skills and knowledge when pursuing the buyers affairs

     A Buyer's Agent can help you determine what price to offer on a property and help you to negotiate with the seller.  They can let you know if the seller is willing to go down in price and how motivated they really are to sell.  


     If you are wondering if it will cost you more to have a Buyer's Agent the answer is most always NO.  The way most real estate transactions work is that the seller pays the commission to the Seller's Agent(Listing Agent).  The Seller's Agent then will split the commission with the Buyer's Agent at closing.  This is typically the way it works but don't be afraid to ask questions before signing a Buyer's Agency Contract.  


     If you are looking for a Buyer's Agent I would be happy to work for you!  Contact me and we can start looking for your new property!


Julie H. Lipnitz
Your UP North Realtor
906.643.7359
julie@HorizonRealtyUP.com
www.HorizonRealtyUP.com