There is nothing more confusing when buying a house than understanding your \u201clegal\u201d relationship with your real estate agent. Yes, your state laws define how an agent can legally work for you or with you.<\/p>\n
Here in Massachusetts you can buy a home through a Buyer\u2019s Agent, Selling Agent, Dual Agent, Facilitator, Designated Agent and a Non Designated Agent. Be honest do you know the difference between each and every different agency?<\/p>\n
As a home buyer it will behoove you to make damn sure you know what this all means. The \u201clegal\u201d relationship defines how an agent will work for you and where their allegiance lies.<\/p>\n
It\u2019s so confusing. Most buyers just gloss over when they start hearing about agency. If you are a buyer and want the highest level of service you should buy a home with a Buyer\u2019s Agent to represent your best interest.<\/p>\n
And as a word of caution, avoid dual agency like the plague, its just bad news. Don\u2019t let an agent talk you into thinking it is a good thing. A dual agent supposedly \u201crepresents\u201d both parties in a transaction. But really who can serve two masters? There role becomes more of a transactional agent.<\/p>\n
If you truly want to make the most of your home purchase find a real estate agent that will represent you as a buyer\u2019s agent.<\/p>\n
A Buyer\u2019s Agent Does More Than Unlock Doors<\/strong><\/p>\n If you decide working with a buyer\u2019s agent is in your best interest, realize a buyer\u2019s agent does way more than unlock doors.<\/p>\n Unfortunately, buyers, in their excitement to buy, just want to view houses and will work with the agent that will get them in the quickest. Most buyers who are unsatisfied with their agent, have not taken the time to learn what agency means in their state and are under the misconception that the agent they are using is working for them.<\/p>\n Yes, as a Buyer\u2019s Agent I unlock doors but that is not where my value lies.<\/p>\n Legal Obligations of A Buyer\u2019s Agent<\/strong><\/p>\n Remember a buyer\u2019s agent works for you and their fiduciary responsibility is to you and no one else in the transaction. They need to do what is best for you. A buyer\u2019s agents basic duties by law are : 19 Tasks A Buyer\u2019s Agent Can Perform For You<\/strong><\/p>\n Below are just 19 tasks your buyer\u2019s agent can perform for you that go above and beyond opening doors and their basic legal obligations. While I have listed 19 tasks there are certainly many other things a buyer\u2019s agent can help you with.<\/p>\n 1. Help assess your situation.<\/strong> A buyer\u2019s agent will help determine if it is the right time to buy? Or is buying a home the wrong decision for you at this time? Final Thoughts<\/strong><\/p>\n State laws vary greatly on agency. Before delving into purchasing a home understand the different legal relationship you can have with your real estate agent.<\/p>\n A buyer\u2019s agent is the only agent that works strictly for you and has your best interest at heart. They certainly do more than unlock doors for you to view properties. By understanding your legal relationship and what a buyer\u2019s agent can do for you, you will tap into their knowledge and experience to make your home purchase a successful one.<\/p>\n At the end of the day, a good buyer\u2019s agent will save you time, money and\/or aggravation during the home buying process. And the good part is their fee is paid by the seller! Take the time and find a good agent to help you buy your next home. They can do much of the heavy lifting involved in buying a home for you!<\/p>\n
\n\u2022 Obedience- A buyer\u2019s agent must carry out all of your lawful instructions
\n\u2022 Loyalty- A buyer\u2019s agent owes you undivided loyalty.
\n\u2022 Disclosure- All information that can impact a clients position must be disclosed by a buyer\u2019s agent.
\n\u2022 Confidentiality- Your information is held in confidence by your buyer\u2019s agent. No information about you that can impact the sale can be passed on to additional parties.
\n\u2022 Accounting- Your agent must account for all funds and not comingle your funds with personal or business accounts.
\n\u2022 Reasonable Care- A buyer\u2019s agent must use all their skills and abilities for the benefit of you.<\/p>\n
\n2. Line up financing and make sure you understand the costs involved.<\/strong> A buyer\u2019s agent will have a good understanding of financing and can help you line up a lender from there arsenal of preferred vendors that is perfect for your situation.
\n3. Determine where you can achieve success for what you want and need in a home.<\/strong> A buyer\u2019s agent is familiar with different communities and what each community offers as well as price points for those communities.
\n4. Manage and explain the home buying process.<\/strong> There are many pieces to the home buying process. While it is your buyer\u2019s agent job to manage the process, they will explain each step so you fully understand what is going on and can make the proper decisions.
\n5. Provide valuable insight.<\/strong> An experienced, full time buyer\u2019s agent work 50-60 hours a week, immersed in the business of real estate and have hundreds of closings behind them. They understand how buyers think, they understand how sellers think. They know communities and what houses are worth. A buyer\u2019s agent can use that experience to your benefit.
\n6. Help identify homes.<\/strong> Your buyer\u2019s agent has tools that will help you identify homes for sale. But, they will also use their skills, experience and abilities to help you look more holistically at what is available. Often my buyers will buy homes that are not on their radar screen that I suggest.
\n7. Organize and schedule viewings.<\/strong> Managing and scheduling showings takes time. It is certainly a times saving tasks to turn over to your buyer\u2019s agent.
\n8. Help assess home you are viewing.<\/strong> Part of being a buyer\u2019s agent is to help assess the pro\u2019s and con\u2019s of each home based on your specific needs.
\n9. Objectivity.<\/strong> Often home buyers can lose their sense of objectivity when emotions run high. Sometimes your buyer\u2019s agent will need to keep you on track with your initial goals.
\n10. Help you reassess your goals.<\/strong> It is not unusual for a home buyer to start the process with unrealistic expectations. Your goals may need to be adjusted more than once during the process.
\n11. Structure an offer.<\/strong> A buyer\u2019s agent will provide guidance on how to best structure an offer for a specific property and your situation.
\n12. Negotiate an offer on your behalf.<\/strong> As an agent we spend much of our day negotiating\u2026.. offers, home inspection repairs, commissions, etc\u2026 It is what we do. There are many considerations when negotiating an offer and your buyer\u2019s agent will help negotiate on your behalf.
\n13. Help do your due diligence on the home you put under agreement.<\/strong> There is much to look into, permits, sex offenders in the neighborhood, what abuts the property etc\u2026 Your buyer\u2019s agent will know what to look for and help you get the info you need.
\n14. Arrange professionals.<\/strong> Lenders, attorneys, home inspectors all need to be utilized. A buyer\u2019s agent will have a network of preferred vendors that they can recommend and help arrange.
\n15. Attend the home inspection and help negotiate repairs if necessary.<\/strong> Your last line of defense is your home inspection. Your agent will help negotiate any repairs or concessions that reasonably need to be considered during your purchase.
\n16. Manage the paperwork.<\/strong> There is a slew of paperwork that needs to be managed, reviewed and signed. Your agent will manage the paperwork as well as explain what you are signing, as well as track critical dates that have dire consequences if not met.
\n17. Track the closing process.<\/strong> From the time you have an offer accepted to closing and moving into your new home there are many steps to be taken. Loans processing needs to stay on track, movers need to be hired, repairs may need to be done, utilities need to be turned on, attorneys need to be coordinated, etc\u2026. Again, an experienced buyer\u2019s agent can walk you though the process in their sleep. They do it every day.
\n18. Get you to the closing to buy your new home.<\/strong> Last minute issues arise and your buyer\u2019s agent will work to resolve those issues so you close on time.
\n19. Make sure you are settled in your new home.<\/strong> Your buyer\u2019s agent will follow up and make sure there are no issues that need to be taken care of after the fact.<\/p>\n