|
|
|
|
| Buying a Home? Consider Hiring a Buyer Broker |
When thinking about purchasing a new home, most prospective
buyers rely on the expertise of a professional Realtor. They
shop around, meet a salesperson they feel comfortable with, and
sign up with that individual's agency, confident that she will
guide them through the home buying process.
What many people don't realize is that, even when your Realtor
is from a real estate agency different from the seller's agency,
by law both agents represent the seller - unless the prospective
buyer has contracted with a buyer broker.
So what's the difference? All real estate agents have the legal
responsibility to represent the seller ethically while dealing
with buyers fairly and honestly. They cannot legally lie or
misrepresent the property to the buyer. But as the seller's
agent, there's a lot she can't do for the buyer.
She can't share information about the seller without his
consent. He may be motivated to sell, even at substantially less
than the asking price, because he has a job across country and
needs to move in two months. A seller's |
agent can't confide that
to the buyer. A buyer broker, however, would be obligated to
share that information, if she knew it, to her buyers.
A common question buyers ask agents is: What should I offer for
this house? Is the asking price fair? A seller's agent is barred
from answering that question, or advising the buyers in any way
how to write an offer for a piece of property, because that
might end up having an adverse effect on the selling price, thus
hurting the seller's financial interests. A buyer broker,
however, can provide buyers with a detailed market analysis, a
document which estimates the property's worth compared to other
similar properties recently sold in the same area. The buyer
broker can also help craft a purchase and sales agreement and
advise buyers about any possible problems with the property. For
instance, say that two years down the road a major highway is
slated to go through the area within half a mile of the
property. This fact doesn't necessarily have to be disclosed by
the seller or his agent unless asked, but would |
|
|
certainly affect
the buyer's view of the home.
One concern people have when hiring a buyer broker is how the
sales commission is going to be paid. A lot of prospective
buyers hesitate to consider a buyer broker because they are
under the impression that they need to come up with the buyer
broker's fee out of their own pockets. You need to quiz your
broker about this, but most will be happy to show you how they
can write a purchase and sales agreement which assures that
their commission, and that of the seller's agent, are paid out
of the proceeds of the sale - that is, by the seller. Just make
sure that if you do come to an agreement about how the
commission is to be paid, you get that agreement in writing.
There is one major caution in hiring a buyer broker: make sure
you are ready to buy before you contract for a broker's
services, and make sure the agreement is for a specified period
of time. You don't want to waste a broker's time if you're just
window shopping. Also keep in mind that if you contract for a
buyer broker's services, then |
find a home on your own or with
another broker, if any part of the purchase process takes place
within the time limit of your contract with the buyer broker,
you legally owe her the full fee, even if she hasn't been
involved with the purchase at all.
A
skilled buyer broker can potentially save you a lot of
money on your new home purchase, and can certainly save you
aggravation by troubleshooting the property and the location for
you before you buy. And the best part is, legally and ethically,
they are on your side!
About the author:
Aldene Fredenburg is a freelance writer living in southwestern
New Hampshire and frequently contributes to Tips and
Topics. She has published numerous articles in local and
regional publications on a wide range of topics, including
business, education, the arts, and local events. Her feature
articles include an interview with independent documentary
filmmaker Ken Burns and a featur
|
|
|
|
