Buyer Representation

BUYER REPRESENTATION

It is of the utmost importance that homebuyers should know things about shared expectations, compensation and loyalty. Many real estate agents receive their earnings through buyer and seller representation in property transactions. Terms and/or commission fees differ from one listed property to another but which brokerage firm and agent who will represent sellers will not be a question because the yard sign will already provide that information. Then again, problems may still arise if a homebuyer inadvertently or purposely does a few things that could lead to two different real estate agents presuming that both of them actually represent the buyer.

Here are a few examples:

Example A

• A homebuyer looks for a home with the help of an agent. Without making a schedule, he went to an open house where he met the hosting agent and chatted about the kind of home that he would like to acquire, not mentioning that another agent is already assisting him with what he is looking for.

Example B

• A husband and wife looks for a home and saw two different houses with two real estate agents. Both of them called the agents and requested to take a look at the homes.

Both cases show that a homebuyer showed an interest in purchasing a home with two real estate agents. A disagreement is likely to take place between the agents about who should get a commission, depending on how your situation describes the manner in which agency relationships are made as well as the other details of the event.

Having said that, it is important to look for a real estate agent prior to searching for a home and validating your relationship through a signed buyer representation contract. Buyers lose nothing here as they can expect nothing but a much better service without having to pay additional fees.

Because your real estate agent offers you his/her complete assistance throughout your home search, he expects your full loyalty to him and is confident that you will never hesitate to confirm to other agents that there’s someone who is already representing you. An agency relationship is based on common agreement, so if you are not pleased with how you are being represented, then you are free to terminate the agreement.

Above all, discussing expectations prior to contract signing is a must. Real estate agents have their own and chosen way on how they work with their clients, and each of them has standardized required agreement that summarizes their responsibilities to you and, in return, what is expected from you.

Take some time to talk about common expectations at the start to create a solid partnership and avoid confusion. This will allow your agent to serve you to the best of his/her ability and assist you in getting the maximum result in purchasing a home. Keep in mind that each state demands a signed buyer representation contract to form agency relationship. There are cases when agency relationships are establis