It is not uncommon for a potential buyer to call a real estate office to see a property they saw on the internet or passed by on a street. Most often the agent will take you to see the home prior to meeting you in the office in hopes of developing a relationship with you before you move on to the next agent. Unfortunately, this is not in either the customer’s best interest or the real estate agent’s best interest. You need to meet the agent, discuss the process and understand where the buying journey is taking you.
First and most important, if you do not have a Buyer’s Agency Contract with a Real Estate Agent, you are NOT a client, you are a customer, and without the fiduciary benefits that come with a signed contract. It is the seller’s interests that are protected, not yours, because if you are being shown a property that is anything other than a ‘for sale by owner’, that seller has a signed contract with the listing agent who is obligated to fiduciary responsibilities required by law and as is the agent showing you the property if without a signed contract with you!
Fiduciary duties are the highest duties known to the law. These duties are loyalty, confidentiality, disclosure, obedience, reasonable care and diligence and accounting. This means the agent has a legal obligation to represent his/her client’s interests to get the highest and best price for the property. They are not legally able to give you confidential information that might, potentially, help you to negotiate a sale that would be more advantageous to you.
For instance, if you attend an open house or meet the listing agent at a property, your interests are not protected. You may be giving important information to an agent whose fiduciary responsibilities are to the SELLER.
The listing agent could, however, act as a dual agent. In this scenario, neither seller or buyer get the full advantage of these fiduciary responsibilities. The dual agent would have to remain neutral while having prior knowledge of the seller’s requirements which might be difficult to put aside during negotiations. Negotiations are a very important part of the buying process and you will benefit from having Buyer’s Agency representation to insure your best interests during negotiations and throughout the buying process.
There is NO cost to the buyer to have a Buyer’s Agency Contract. Commission on the sale of a property is paid by the Seller.
Once you sign that Buyer’s Agency Contract, you are insured the full benefit of all fiduciary obligations and are represented and protected in your real estate transactions. An agent with an Accredited Buyer’s Representative (ABR) education brings even more specified knowledge to help you fulfill your dream of home ownership.
Table of Contents
- Part 1: Consumer Notice-9/14/17
- Part 2: Buyer's Agency Contract-9/21/17
- Part 3: Buyer's Agent Commitment to Client-10/10/17
- Part 4: Mortgage Pre-Approval, Why is it Essential?-Coming Soon
- Part 5: The Seller's Disclosure
- Part 6: Deposit Money in a Real Estate Transaction-Coming Soon
- Part 7: The Escalation Clause, To Use or Not to Use?-Coming Soon
- Part 8: The Anti-Fraud Disclosure-Coming Soon
- Part 9: The Sales Agreement, What Is In It?-Coming Soon