Buyer Agency and How it Affects You.

Many home buyers do not ever realize that just because you are talking to an agent it does not mean you are being represented. They, like many home buyers before them, believe that the Agent who they are working with is looking out for them and their interests. If you have not signed a buyer’s agency this is not the case.

In most cases unless you have a signed buyer’s agency agreement with the agent you are dealing with, the agent is working for and protecting the interest of the seller not you as the buyer.

Buyer's Agency, however, is option available to you. Simply put, it allows you to hire an Agent to be your representative and to put your interests above all others.

An Example of This: You see a house advertised in the newspaper or other advertising media. You are interested in the home, so you contact the agent who is advertising the home (this will be the listing agent) and appoint a time to see the house. The Agent is friendly, answers all your questions about the home, and tells you what seems to be everything about the house. So, is the agent representing you???? NO! The Agent is representing the seller, not you. In fact any information you give the listing agent can legally be used against you in negotiations with the seller.

Okay, so the agent represents the seller. Is that a big deal as a buyer? It certainly can be. There are several things that you do not get if you do not have a buyer’s agent working on your side. For instance:

• The reason for selling: The listing agent can not (according to law) reveal the seller’s reason for selling (Unless the seller specifically authorizes it) a Buyer’s Agent on the other hand will reveal this to you and help you use it to your advantage in negotiations.
  
• Any concessions, in price or otherwise, that the seller may be willing to give up: The listing agent can not reveal that the seller will take less for the home or that the seller may pay for the buyers closing costs a buyers agent on the other hand will work to get the absolute best deal on the home and may be able to get the seller to pay your closing costs.
  
• Any information that could be detrimental to the seller, or give you, the buyer, an advantage: The listing agent can not reveal anything to the buyer that would be a disadvantage to the seller while that is precisely the job of the Buyer’s Agent, to give the buyer the upper hand.
  

A Buyer’s Agency contract turns the tables and gives you the representation from an agent giving you several advantages and benefits:

• The Agent can develop a Comparable Market Analysis: A comparable market analysis tells you what similar properties have sold for so you do not over pay for the home..
  
• The Agent can reveal to you any information about the seller that the Agent may obtain: A Buyer’s agent can reveal any information the can get about the seller, and use this information to negotiate for you. This may include reasons for selling, the seller’s ability to accept a price less than asking price including what sales price the seller has previously accepted, and any other information that may be used to your advantage.
  
• Information about property value trends that may influence your decision about a certain area can be relayed to you: Your Buyer’s Agent can reveal any information to you that may affect your investment in a particular home including area appreciation rates and construction that may affect these rates.

Is it necessary to have a Buyer's Agent? No. Thousands of home buyer's have bought homes without a Buyer’s Agent (For years, it was the only way it was done), but Buyer’s Agency is an option that can benefit you when buying a home.