LESSON 4: Working With A Buyer's Agent

Purchasing a home is the most complex financial transaction most people ever undertake. The many details involved -- from searching for appropriate properties to negotiating a solid purchase contract, from finding financing to bringing about a successful settlement -- amount to a full-time job and then some. That's why it makes so much sense to work with a professional real estate agent.

Before you begin your home search, find a buyer's agent who will work with you to represent your interests and handle the many details involved in the transaction. (We would be happy to work with you!)

Picking An Agent

Because you may spend a lot of time home shopping and talking with your agent, it's very important that you have a good rapport with each other. You should feel comfortable asking the agent questions. You should also have a sense that your concerns are being listened to, taken seriously and responded to appropriately.

Here are some questions you may want to ask agents before you sign a contract for representation:

~ Do you have access to the area multiple listing service, foreclosed listings and other sources of information about available homes? Make sure your agent is well-connected and knows where the new listings are coming from.

~ Will you show me all the available homes in my price range, even if they're listed by another company?

~ Will you provide me with a comparative price analysis for any homes I'm considering buying?

~ How often will you communicate with me? How and when will I be able to contact you?

~ Can you supply me with references from other buyers you've represented recently?

~ How extensive is your knowledge about the current mortgage options available? Can you refer me to reputable lenders?

~ What types of contract contingencies would you suggest I include in my purchase offer? Look for a highly skilled, creative negotiator who can get your offer accepted while protecting your interests.

~ What tasks will you take care of to ensure my home purchase goes to settlement as quickly as possible?

What To Expect

If you decide to work with a buyer's agent, you'll sign a contract detailing the exact terms of your relationship. Here are a few things you should expect to see in a written agreement of buyer agency.

Agency disclosure: Explains in plain language that the agent works for you, the buyer, rather than sellers, during the transaction. Many states require disclosure to protect the consumer.

Confidentiality: Nothing said to your agent should be repeated elsewhere -- especially to a seller's agent.
Scope/length of work: Details what the agent will do for you and for how long. This involves the search for homes, previewing them for you, negotiating the purchase contract and overseeing the fulfillment of the contract (e.g., monitoring inspections and appraisals).

Compensation: Spells out who pays the agent working for the buyer. Often, buyer's agents receive a portion of the commission the seller pays his or her agent and broker -- but not always. Some buyer's agents receive a flat fee or hourly fee from the buyer.

Dual agency: Explains what happens if your agent handles your transaction when his or her company is also representing the seller. The agreement should spell out how your interests will be protected.

ANY QUESTIONS? We'd be happy to answer your specific questions about your particular situation. This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

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