Do you need a buyer's broker? We think you do and this article will explain why a buyer's broker is necessary for your next real estate purchase.
Historically most sellers have been represented by brokers in an exclusive capacity. Until recently the relationship of the buyer to the broker has been less well defined and rarely documented in writing. State governments as well as the National Association of Realtors noted the conflict and confusion regarding buyer representation. This has given rise to the growing trend of written buyer representation agreements.
A written buyer’s representation agreement is a win-win situation for all parties to the agreement. For the buyer it clarifies the responsibilities and obligations and assures (in the case of an exclusive representation agreement) full fiduciary duties to the buyer. For the broker the commitment of the client to use the broker exclusively (for a limited time as defined in the agreement) allows the broker to prudently invest all the time, funds, and effort required to fulfill the buyer client’s property requirements.
It should be noted that in almost all cases, brokers representing sellers will cooperate fees with a Buyer’s broker. Thus, in effect the buyer’s broker is compensated by the selling broker so that there is no additional cost for the buyer’s representation. There are some exceptions in cases where a FSBO is purchased by the buyer directly from an owner.
Buyer’s new to a market, or purchasing a second home away from their full time residence, or those buyers not well versed in real estate transactions are well advised to have a broker operating as a fiduciary on their behalf. This is especially true in markets where property inventories are limited and competition for property can be keen.
We represent buyers on an exclusive representation basis. See typical agreement sample. In addition to the legal obligations under the agreement we also provide the following additional services:
We provide a comprehensive snapshot of the community featuring complete demographic, school information, crime statistics, climate, and other valuable background information.
A report of homes to be reviewed complete with maps, cost comparisons, cost of ownership, loan analysis, and specific market statistics.
For those wishing financing assistance we will arrange for your mortgage pre-qualification with one of our many local lenders.
We know your time is important so we will preview listings that meet your general criteria, report our findings to you, and include or exclude them in your home tour as you direct.
Sometimes clients have specific questions regarding an aspect of a property; the location, neighborhood, size of the closets, or color of the tile. We will photograph the item or issue in question and email you the photos.
We provide all normal transaction documentation and are skilled in drafting of a variety of transaction specifics including 1031 exchanges, foreign currency transactions, and unique financing requirements. In addition we can retain both legal and accounting professionals on your behalf for consulting and assistance as required.
Our efforts do not end with closing. We assure that no post closing items are forgotten. From change of address forms, to moving coordination, to arranging for the newspaper, we will use our best efforts to assure that the purchase of your home is smooth, seamless, and pleasant.
To learn more about our services or to request a copy of our Buyer’s Seminar, please click here.