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What's a
Buyer Agent?
We provide real estate services to buyers
and sellers in Pennsylvania (Berks County, Chester County, Delaware County,
Montgomery County, Philadelphia, Drexel Hill, Haverford Township, Havertown and Upper Darby) as well as in
New Jersey (Brigantine, Atlantic City, Ocean City, Camden County and Gloucester
County).
A real estate buyer’s agent represents the consumer who is purchasing a
property in the transaction. This agent owes full responsibility and
loyalty to the home buyer. He or she has solely the buyer’s best interests
in mind throughout the entire transaction process.
The agent is compensated by
splitting the commission paid by the seller to the seller's agent, which is
based on the selling price of
the property. In the case of new construction, the builder is the
seller and is usually represented by an agent. The builder's agent
represents the interest of the builder; while buyer's agent represents the
interest of the buyer. Compensation is also based on the split of
commission paid by the builder.
It is important for the consumer to discuss the buyer agent’s
compensation and for the parties to agree to terms with a written contract prior
to viewing properties. This agreement should detail the responsibilities of
both parties throughout the process of buying a home.
It should be noted that
in some states legislation has been enacted to protect the buyer to the point
that without a written agreement, the agent represents a seller throughout the
entire transaction. Be sure to consult your real estate agent for complete
details when you first start the search for purchasing any real estate property.
In Pennsylvania, agents are required to present and explain a state-mandated
Consumer Notice that would cover these matters for the protection of
both buyers and sellers.
There are many benefits to using a buyer’s agent. These agents will:
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Evaluate the specific needs and wants of a home buyer and locate properties
that fit those specifications.
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Assist the buyer in viewing properties and either accompany the client on the
showings or preview the properties on behalf of the client to insure that the
identified specifications are met.
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Research the selected properties to identify any problems or issues to help
the consumer in making an informed decision prior to making an appropriate
offer on the property.
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Present the offer to the seller’s agent on behalf of the client.
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Negotiate on behalf of the buyer to help obtain the property at the best
possible price.
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Review and explain all legal documents to their clients.
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Recommend and assist in securing adequate financing.
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Provide a list of potential qualified vendors such as appraisers, attorneys, home
inspectors, etc.
Most importantly, when working with a buyer’s
agent, the home buyer will know and trust that they are fully represented
throughout the entire transaction process.
About Dual Agency
In the past, home buyers often assumed
their real estate agent worked in their behalf because the agent showed them
lots of homes, called them regularly to tell them about new listings, wrote the
agreement of sale, and helped them in financing and other issues related to the
purchase transaction. Buyers felt comfortable to give confidential
information to an agent, unaware that it was the agent's duty to pass the
information on to the seller because they acted as a sub-agent for the
seller.
Today, many states have enacted laws to help protect and educate buyers.
Real estate agents are required to disclose whom they work for. The disclosure
may take place at your first face-to-face meeting, during a phone call, or by
e-mail, but it should always be made before a real estate agent asks for
specific information about your needs. This is the so-called
Consumer Notice.
Dual agency occurs when a Buyer's Agent
also represents the Seller. The dual agency could occur at the real estate firm
(or broker) level, or at the agent level. If the Buyer's Agent shows a property
that is listed by him personally, the dual agency is said to exist at the
agent level. However, if it is listed with the same firm, but by another
agent, the dual agency is said to exist at the broker or firm level.
In the latter case, the two agents -- one representing the Buyer and another
representing the Seller -- are what is called designated agent.
In a designated agency, each agent should represent the interest of their
respective clients. Designated Agency is practiced in Pennsylvania, but
not in New Jersey. In New Jersey, both agents will be considered Dual
Agents.
Although it can be done, it is generally more difficult to handle dual agency,
since the agent has responsibilities to both parties. The agent must be
specially qualified and experienced to handle dual agency because of the fine
line the agent has to walk in certain situations. Dual agency must
typically be disclosed to the buyer and seller in advance, and both must agree
to it in writing.
Choose your agent wisely. Working with a full-time professional real estate
agent is a must. Ask questions of your agent. Find out how knowledgeable he or
she is about houses currently for sale in your price range and also of houses
that have recently sold. Can your agent recommend a good lender that has the
reputation of excellent customer service and low rates? Does your agent ask
questions of you to have a full understanding of what you are looking for to
help you get the most home for the money?
To receive
your FREE copy of Homebuyer's Handbook or Homeseller's Handbook, click here.
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