What is buyer representation?
In easy to understand language, Buyer Representation is what every buyer of real estate deserves and needs when making such an important financial decision as purchasing real estate. You need to work with an agent that keeps your needs first in the transaction. The agent should have no fiduciary duties to the seller.
Fiduciary duty means an obligation to act in the best interest of another party. Don't you want that fiduciary duty on your side?
You will not be fully represented if you purchase any home through the listing agent. In that case, the listing agent is acting as a dual agent and cannot give full representation to either party. A listing agent is the agent that actually took the listing on a property and is the designated agent for the seller.
If you go through an open house without your agent and purchase the home through the listing agent, then you are not receiving Buyer Representation. This agent will not tell you whether the home is overpriced or not. They cannot tell you if they know what the seller's bottom line is.
If you go through any home with me (as long as I'm not the listing agent), you will receive full Buyer Representation. I can tell you whether I feel the home is overpriced and I can help you make a reasonable offer. I will perform a Comparative Market Analysis to let you see what similar homes have recently sold for to help you make your decision.
If I have knowledge of what the seller would accept I will tell you this. Does this ever happen? Rarely, but if it did I would be able to inform you. This could occur in a few ways:
- Maybe I already showed a property to an interested buyer. Let's say the asking price was $250,000 but my other buyer (Buyer A) decided to offer $225,000. The seller countered back at $235,000. Buyer A did not accept this counter-offer and purchased something else. The list price is still $250,000, but I can legally tell you that these sellers will most likely accept $235,000. This can't be guaranteed, of course, as every seller can change their mind. But by representing you I can give you this information.
- During negotiations, the listing agent told me how low the seller would go. That agent is wrong for doing this, but it has happened. I would be able to pass this information along to you.
- I might have heard through another source that a particular seller is willing to accept a certain offer. I am free to tell you this information.
I hope this explains to you how important full Buyer Representation is. If you have any further questions please call me at 708-536-8200 or Contact Me.