Who needs a Buyer Agent?

Anyone who is interested in buying real estate: a single family house, a condo, or residential investment property will benefit from the services and guidance of a qualified Buyer's Agent.

 

Why?

Buyers and Sellers are naturally interested in protecting their own interests.  There is only one pie: More for one is less for the other or "a zero-sum game".

Though this isn't necessarily an adversarial process, there is much to negotiate in a real estate transaction.  Certainly experience and perspective can make the process smoother, save time and reduce the uncertainty inherent in any significant purchase.

 

"Who's Who in Homebuying"

If you are already comfortable with the definitions of Listing Agent, Buyer Agent, Sub-Agent and Dual Agent, we can go ahead with a discussion of their roles, obligations and motivations.  Otherwise, click on FAQ for a page of definitions and explanations.

 

Buyers and Sellers have opposing goals.  Buyers want to buy a house for the lowest possible price while Sellers will be rooting for the highest.  Buyers want the Seller to disclose any known defects and repair any discovered during a home inspection.  Sellers would prefer to just move out, show up at closing and never look back.  To be clear, competent Realtors will treat you fairly.  But inevitably during a transaction, a situation will arise where a decision must be made.  One way will advantage the Seller, the alternative will give the advantage to the Buyer.  If "your Realtor" truly is your Realtor, that is, you have signed a Buyer's Agency Agreement (link here), they have to treat you more than just fairly.  They are ethically and contractually bound to provide you with advocacy.  They have a fiduciary duty to you.  Your interests come ahead of everybody else's, including their own.


This is why it is a bad idea to call the name on the sign.  That is the Listing Agent.  They too have a fiduciary responsibility: to the Seller.  They have the same obligation to the Seller as a Buyer's Agent has to the Buyer.  So what happens when a Listing Agent happens upon a Buyer at an Open House or gets a call off the sign in the yard?  The choices are limited.  They can proceed to treat the Buyer as a Customer and the Seller as a Client.  This would put the Buyer at a significant disadvantage.  The Listing Agent would only be doing their job if they were to pass along remarks a Buyer might make like "we'll pay more if we have to, we don't want to lose this house".  If that isn't enough, if the Seller had mentioned during the course of the listing presentation that they would consider an offer for significantly less, the Listing Agent can't share that info with the Buyer. Remember: they work FOR the Seller.  They aren't evil or devious, they are just fulfilling the role they contracted for in the Listing Contract.

 

Getting paid twice as much clouds judgement.

Divided Loyalty...how does that work? Not well.

Buyer brings the money, what do they get? Representation or...

 

Fiduciary Duties of a Real Estate Agent

 

  • Loyalty
  • Obedience
  • Disclosure
  • Confidentiality
  • Reasonable Care and Diligence
  • Accounting