| How often do you purchase real estate?
Once, twice, three times in your lifetime? So you can hardly be expected to know all the ins and outs of such a major transaction complicated by so many other details. In most transactions, sellers are represented by a listing agent who minds these details and their client’s best interests. As a buyer, don’t you also want complete and fair representation in your real estate transaction? Real Estate buyer’s representatives are responsible for protecting the best interests of their clients – buyers like you – and can guide you through every step of the process. So the first step, and perhaps the most important, is finding your buyer’s representative.
Defined most simply, a buyer’s representative (or buyer’s agent) represents the buyer in a real estate transaction. Buyer’s representatives usually owe full fiduciary (legal) duties, including loyalty and confidentiality, to their buyer-clients and keep their best interests in mind throughout the entire transaction. |
Why Should I Use a Buyer’s Representative?
The two most important reasons to use a buyer’s representative are protection and efficiency.Most likely, the seller of whatever property you buy will be represented by a listing agent who can provide expertise throughout the transaction. Don’t you want the same kind of service as a buyer? A buyer’s representative can provide you with the expertise you need through the entire transaction.According to research, buyers who work with a buyer’s representative also find their homes quicker, while viewing more properties in their search, than buyers who do not engage a buyer’s representative. |
Buyer’s Representative Service Checklist
Your buyer’s representative can help you:
Identify your needs
Suggest sources of financing, and other service professionals,
such as inspectors and renovators
Provide sources of accurate information on neighbourhoods, schools, and communities
Select and arrange properties to view
Evaluate particular properties
Explain forms and agreements
Suggest contract contingencies to protect you
Assist in the negotiations for a favorable price and terms
Keep all information confidential that could weaken your bargaining position
Monitor the entire purchase process, assisting should issues arise through closing
| How is my buyer’s representative compensated?
Many buyers wonder, “Do I pay my buyer’s representative?” Typically, buyer’s representatives are compensated from the commission sellers pay their listing agents, usually based on the selling price of the property, and through the proceeds of the sale. In most cases, prior to viewing any properties, you and your buyer representative should sign a written agreement that includes the obligation of both parties. |
What’s Next?
Once you’ve chosen your buyer’s representative, you can chart your game plan, and the rest of the steps in the Toolkit will help you lay it out. Maybe you have thought about things like your motivation for buying a home, how long you plan to live there, and your timeline for buying; share this information with your buyer representative. The more information you supply, the better your buyer’s representative will be able to serve you. Thousands of homes are bought and sold every year. Is the process complicated and a bit overwhelming? It can seem so. But is it manageable? Absolutely! And preparation is the name of the game. |
*Source: the Real Estate Buyer’s Agent Council (REBAC), The Homebuyer’s Toolkit is published by REBAC, a subsidiary of the National Association of REALTORS (NAR), and the organization that awards the Accredited Buyer’s Representation (ABR) professional designation. This Toolkit is available as a service to help educate homebuyers because knowledge and information are the best tools for a successful home-buying experience.