Why Use a Buyers Agent?
A buyer's agent represents your best interests, and works to
get you the home you want at the best price and the best
terms. Part of this includes preventing costly errors, such
as failing to find out about defects in a property or its
actual value. Traditionally, all real estate agents
represented the home seller, and the buyer had no
representation during the home search and purchase. Today,
home buyers can benefit from professional representation by
choosing a "Buyer's Agent."
Legally, a buyer's agent's
responsibilities are defined by Montana law and the
REALTORS® Code of Ethics, and generally include
confidentiality, full disclosure and accurate accounting. A
buyer's agent's goal is to help you buy the home you
want--and buy it at the right price.
What does a Buyer’s Agent do?
• Represents you in every part of the purchase process
• Provides professional advice in finding the right property
at the right price
• Locates and researches properties that meet your
requirements
• Negotiates with the seller
• Puts you in contact with mortgage services, title and
insurance companies, and home inspectors
• Reviews documents
• At closing verifies that all terms and conditions of the
purchase agreement are met
But, that's not all. As your representative, a buyer's
agent will share helpful information with you, such as:
• Whether the seller would accept a lower price
• The seller’s reason for selling and their timetable
•How long the home has been on the market
•Previous offers and counteroffers for the property
•Strengths and weaknesses of the property
How is a Buyer's Agent paid?
A buyer's agent usually receives a share of the sales
commission built into the list price. In most cases, a
listing agent agrees to split a sales commission with any
agent who obtains a buyer for the seller's property. In
other words, buyers get all the benefits of professional
representation and it is usually the seller or the seller’s
agent who pays for the buyer’s representation.
Buying a home is probably the most important purchase of
your life. Choosing to be represented by a buyer's agent
means you'll be able to make an informed, intelligent
decision. We are qualified with years of experience working
for you, the buyer, to get you the home you want at the best
price possible.
What does a Buyer’s Agent ask from you?
In a word, Loyalty. Real estate agents work on
commission. Most people would not consider going to work
without a guarantee of getting paid, but real estate agents
do it every day. It is important to have a good relationship
with your Buyer’s Agent because you will be spending a lot
of time together. Having an exclusive Buyer’s Agent
agreement is the key to getting the most out of that
relationship. Expressing your loyalty in writing helps
assure the Buyer’s Agent that his or her time is not being
wasted and he or she will generally roll out the red carpet
for you.
Can you imagine working with someone for months and
receiving a call one day informing you that they have just
bought a “for sale by owner” home or called on a sign in
someone’s yard and submitted an offer with another agent?
When you ask a buyer’s agent to show you property, you
are implying that you will eventually write an offer through
that buyer’s agent. In short, if you ask an agent to spend
time driving you around, sharing knowledge, and helping you
select a home, it is only fair to be loyal to that agent.
Tips for getting the most from your Buyer’s Agent:
1. Understand that agents work on commission.
Do not ask them to work for you if you intend to cut them
out of your deal. 2. Do not call the listing agent if you are working with a
buyer’s agent.
Listing agents work for the seller, not the buyer. If a
listing agent shows you a home, the listing agent will
expect you to use them when writing an offer. 3. Practice proper open house etiquette.
Hand your agent’s business card to the agent hosting the
open house. Sometimes it will be the listing
agent, other times it will be an agent looking for
unrepresented buyers. Announcing you are represented
protects you from solicitation. 4. Expect to sign a Buyer’s Broker agreement to create a
relationship between you and the broker.
Buyers who will not sign an exclusive buyer’s agent
agreement are saying that they do not care if the
agent gets paid. 5. Ask for an Agency Relationship Disclosure Form.
These are required by law to disclose the types of agency
practiced in Montana. It is simply a
disclosure, not a contract. 6. Make your expectations known.
Let your agent know how you like to communicate and how
often. Do you want phone calls, email, text
messages, etc.? Set realistic goals and a time frame for
finding your home. If you are not getting what
you bargained for, say so. 7. Do not sign forms you don’t understand.
It is okay to ask your agent to explain a form to you. It is
part of their job. 8. It is okay to look, but be ready to buy.
If you are not ready to buy today that’s okay. A good
buyer’s agent will want your business as badly in 6
months as he or she does today, but remember that loyalty is
vitally important to your agent. What others are saying: "Agents: How to hire one for your side." "Most agents who
show you a home don't represent your interests. They
work for the seller, and their objective is to sell the
house for the highest possible price." USA Today "You have a whole new evolution of practice in the
marketplace." said Sharon Millet, a Maine real estate broker
who headed the 22-member NAR task force that issued the
report. Millet said that the report's recommendations
are designed to give home buyers and sellers easier access
to the "kind of representation" that they want."
Washington Post "Buyer Advocacy appears to be taking off." "I'll never buy a
house any other way." Wall Street Journal "To Buyers: If you want representation, work with a buyer
broker. They are legally obligated to represent yourinterests in any negotiations with sellers."
The Consumer
Federation of America "Groups such as the Consumer Federation of America and AARP
recommend using a buyer's agent. Smartmoney Magazine "Many people don't realize that, unless specifically stated
otherwise, brokers are legal representatives of sellers.
A buyer broker, representing only the buyer, may be able to
secure a better price and better terms." Good
Housekeeping For more information or to speak with a buyer's agent call
Henry at 406-363-1643. Or, if you prefer, email us at
henry@discovermontana.net. |
