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Answers to common questions:
WHAT IS A BUYER'S AGENT AND HOW DID IT DEVELOP?
In 1982, a Federal Trade Commission study revealed that over 72% of all home buyers nationwide mistakenly believed they were being represented by the agent who was showing them homes. As a result, laws requiring agents to disclose exactly who they represent have been passed all over the country. When consumers became aware that most agents worked for the seller, they began demanding their own representation. In response, the buyer's agent began.
ISN'T THE AGENT SHOWING ME HOMES REPRESENTING ME?
Don't count on it, unless you have a written Agency Agreement. Unless you have a written Agency Agreement with the real estate agent promising to represent only YOUR best interests, you may find yourself working with an agent who is obligated to act in the best interests of the seller.
HOW IS THE BUYER'S AGENT PAID FOR ITS SERVICES?
There are several ways that a Buyer's Agent representing you can be paid. It is always your choice. The most common way is the same way other real estate agents are paid- the typical commission paid at closing is usually divided between the listing broker and the broker of the Buyer's Agent. The other is an upfront fee which is deducted from the commission at closing. THERE IS NO NEED FOR YOU TO INCUR ADDITIONAL COST FOR MY SERVICES.
IF YOU WORK ON COMMISSION, WHY WOULD YOU TRY TO LOWER THE PRICE OF A HOUSE FOR ME?
If I save you 5,000 dollars on the purchase of your home, I would only earn 100 dollars less commission. Your goodwill and word-of-mouth advertising will be worth much more than this. I also have a legal obligation to represent only my client's best interests.
DOES THE BUYER'S AGENT HAVE ACCESS TO ALL RESOURCES LIKE THE MULTIPLE LISTING SERVICE?
Absolutely yes and even more! I belong to the MLS, so I can show you homes listed with this service. In addition, since I represent you, and not any sellers, I regularly show homes that are "for sale by owner" and "for sale by builder."
EXACTLY HOW DOES THE BUYER'S AGENT ESTABLISH THIS CONTRACTUAL RELATIONSHIP TO REPRESENT ME?
Just as sellers establish a contractual relationship by signing a listing agreement with their agent, you establish a contractual relationship with me by signing a Buyer's Agency Agreement. This agreement makes me legally accountable to you and NOT the seller.
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