Buyer's Representative, Do I need one??
Why Do I Need a Buyer's Representative?
When a REALTOR lists a home, the REALTOR works for the owner of that home, and is called a Selling Agent. If you call the Selling Agent of a home that you are interested in, you can expect that they will repeat EVERYTHING you say to the owner. It's their job to do whatever they can legally do, to help that seller get the highest price possible for their home.
If you tell the Selling Agent, "I love this house. I would pay $10,000 over the asking price.", the Selling Agent IS going to tell that to the owner of the home.
The Selling Agent owes that owner six Fiduciary Duties: Loyalty, Obedience, Disclosure, Confidentiality, Reasonable Care and Diligence, and Accounting. Remember, they work for the seller, not the buyer!!
What Will My Buyer's Representative Do For Me?
A Buyer's Representative (also called a Buyer's Agent) works for the BUYER. Anything you tell your Buyers Rep is strictly confidential. In fact, you want to tell your Buyer's Rep everything about your situation that could help them help you!! You should feel completely comfortable telling your Buyer's Rep what you are looking for in a home, when you expect to buy, and especially how much you can afford to spend.
Your Buyer's Rep will help you through the entire home buying process. From obtaining a Pre-Qualification so you know your price range, to the closing when you receive the keys to your new home.
Do I Have To Pay My Buyer's Representative?
You , the Buyer, DO NOT pay for a Buyer's Representative. Your Buyer's Rep is paid by the Seller, at the closing via the commission charged by the Selling Agent. If your Buyers Rep doesn't find you a home, they don't get paid!!!
Do I Have To Sign A Contract?
To fully take advantage of all the services that a Buyer's Rep can offer, you will be asked to sign a contract. This lets your Buyer's Rep know that you are fully committed to purchasing a home with them as your representation. Thisi contract DOES NOT commit you to purchasing a home, it just promises that when you find that perfect home, you will use your Buyer's Rep to purchase it. If your Buyers Rep doesn't find you a home, they don't get paid. Likewise, if you rely on your Buyer's Rep to help you through the stages of finding the perfect home, and then purchase that home with a different Realtor, the Buyer's Rep is left with no compensation for all their hard work.