Buyer’s Agency

Buyer’s agency has been around since the 1990’s but few buyers realize just how important it is to them when looking for and buying a home.  Wikipedia defines Buyer’s agency as “the practice of real estate brokers and their agents representing a buyer in a real estate transaction rather than, by default, representing the seller either directly or as a sub-agent.”  But what are the advantages to a buyer hiring an agent to represent them in buying a home and what are the differences with a traditional real estate brokerage. Below are listed some of the differences and the advantages to buyer’s agency representation.

• Most buyers do not know that when working with a traditional brokerage the agent working with them represents the seller.
• An agent representing the seller cannot reveal the reason for selling unless the seller specifically authorized release of this information.
• Agents representing the seller cannot offer any concessions the seller may be willing to provide.
• Conversations between the seller and agent are confidential.  Any information that may be detrimental to the seller which gives you the buyer an advantage will not be conveyed.

As you can see the buyer is not being represented in these types of transactions and in today’s market the buyer wants to take advantage of all means to acquire a home which is why we are seeing many more buyers opting to hire a buyer’s agent.  Now some of the advantages of signing a buyer’s agency agreement;

• A buyer’s agent can prepare a comparative market analysis using historical data to determine the true market value of the home at that time.
• The buyer’s agent can reveal any information about the seller and why they are selling that the agent can ascertain.  This could include the reason for selling, concessions or any other information that will help you make an offer.
• You as the buyer are being represented and the focus is to meet your needs.

Buyer’s agency puts you as the buyer in the driver’s seat and if negotiations are at a standstill wouldn’t you want to be the one who is being represented.   As you can see buyer’s agency can be a tool that buyers can use to find the best property at the best price.  Finding the right home, at the right price and making a decision that may be the most important financial decision in your life is too important to not be the focus of your agent’s attention.