Published March 04. 2016 12:01AM By Quincy Clayton Sponsored by: Eastern Connecticut Association of REALTORS®.
Buyer brokerage is one of the fastest growing real estate specialties because more and more homebuyers want the services of an agent who owes full fiduciary responsibilities, duties, and loyalty to the real estate buyer. The buyer’s agent works for the buyer-client and has the buyer’s best interests in mind. In fact, Connecticut law requires all buyers to sign a buyer representation agreement with a real estate agent before that agent can show them properties listed by other brokers.
The National Association of REALTORS®‘ (NAR) 2014 Profile of Home Buyers and Sellers found that 88 percent of all buyers in purchased their home through a real estate agent or broker. Just as a seller’s agent is hired to obtain the price and sale terms sought by the seller, a buyer’s representative is hired to get the best possible price and terms for the buyer. In buyer representation, a real estate professional is paid to represent the buyer in a real estate transaction. The buyer’s representative and the buyer negotiate the fee for service. The buyer representation agreement sets forth how the buyer’s representative will be compensated. Compensation for the buyer’s broker is paid by the listing broker, the seller, or by the buyer directly. The fee is negotiable.
NAR recommends that consumers entering into a buyer representation agreement consent to the terms of compensation and sign a written agreement based on these terms before they start to view properties. The agreement should spell out the responsibilities of both parties throughout the real estate transaction. Buyer representation goes beyond just negotiating prices for homes. A buyer’s representative might negotiate with the seller for a smaller deposit, for all closing costs to be paid by the seller, or for other contract terms more favorable to the buyer.
Buyer brokerage assistance may include helping the buyer obtain third party assistance, such as legal counsel to review proposed contracts, or an inspector to conduct a structural inspection of the property. A buyer’s representative is loyal to the buyer’s interest. Clearly, the service and expertise provided by a buyer’s representative are what the home buying public wants and values. Buyer representation services begin with needs assessment, leading to a search for the right property and continuing to negotiations for the best price and terms, right through to completion of the transaction and beyond.
Visit our web site at easternctrealtors.com or our blog at ecarvoice.com to learn more. Quincy Clayton is president and state director at the Eastern Connecticut Association of REALTORS®.