Research by the
National Association of REALTORS has shown that when a buyer's representative
is used, the prospective buyer found a home one week faster and examined
three more properties than consumers who did not use a buyer's
The buyer's representative works for, and owes fiduciary
responsibilities to, the real estate buyer and has buyer's best interests in
mind throughout the entire real estate process. A buyer's representative will:
the specific needs and wants of the buyer and locate properties that fit
the buyer in determining the amount that they can afford (pre-qualify), and
show properties in that price range and locale.
in viewing properties -- accompany the buyer on the showings, or preview the
properties on behalf of the buyer to insure that the identified
specifications are met.
the selected properties to identify any problems or issues to help the buyer
make an informed decision prior to making an offer to purchase the
the buyer on structuring an appropriate offer to purchase the selected
the offer to the seller's agent and the seller on the buyer's behalf.
on behalf of the buyer to help obtain the identified property -- keeping the
buyer's best interests in mind.
in securing appropriate financing for the selected property.
a list of potential qualified vendors (e.g. movers, attorneys, carpenters,
etc.) if these services are needed.
importantly, fully-represent the buyer throughout the real estate
The Buyer Representation Agreement
It is important for the buyer to discuss the buyer's
representative's compensation in the initial interview. In many cases
it is recommended that the buyer and the buyer's representative agree to the
terms of compensation prior to viewing properties, and sign a written
agreement based on those terms. The agreement should spell out the
responsibilities of both parties throughout the real estate process.
In some states, legislation has been enacted to protect the
buyer to the point that, absent a written agreement, the buyer's
representative represents the buyer throughout the real estate
transaction. Consult your REALTOR
for complete details when you begin the purchase process.