What is a buyer's representative?
A buyer's representative is also known as a buyer broker or buyer's agent. The function of a buyer's representative is to work for the buyer in a real estate transaction. Throughout the buying process the buyer's agent keeps the buyer's best interests in mind using the utmost faith, loyalty and fidelity. The buyer's agent negoiates on behalf of and acts as an advocate for the buyer.
What can I expect a buyer's agent to do?
Typically a buyer's agent will discuss your goals and expectations by doing a needs assessment. Once your needs are known, the buyer's agent can plan a strategy to find you the right home. This strategy could begin with an immediate home search, or if necessary a consultation with a lender to get your credit history in order. Each case is different, all depending on the buyer's needs. It's the buyers agent's goal to have you ready to negoiate from position of strength.
The buyers agent will share knowledge of real estate market trends. Prior to writing an offer, the buyers agent will do a "sold search" evaluating the properties sold in the area, so you can be sure the price you are offering is a good one.
The buyers agent brings a career's worth of knowledge to your transaction.
Other Benefits of Using a Buyer Representative:
- Save's Time
- Save's Money
- Less Hassle and More Convenient
- Save Effort/Energy
- Increased Security
How Does the Buyer's Agent Get Compensated?
Hiring a buyer broker to represent you requires contractual agreement. Compensation is discussed and agreed to within the contract. It is common in the Denver metro area for a buyer broker to be compensated by the Seller's Agent upon the close of your home. Keep in mind when working with a buyer's agent, you to owe the agent loyalty. If you find a home while out looking on your own, you need to inform and include your agent.
Do I Have to Sign a Long Contract with a Buyer's Agent?
Depending upon your needs, it is generally not necessary to sign a long contract with a buyer's agent. You can ask a buyer's agent to represent you for as little as one house, if that suits your needs. If you aren't in a hurry to find a home, you might want to "try an agent out" by doing a month to month agreement. Just keep in mind, most agents prefer the security of knowing they have a buyers loyalty, before putting forth a lot of effort in locating a home. If you aren't willing to commit to a single agent, then you should wait. Of course not commiting to one person means you are losing all the benefits you would gain by hiring an experienced agent to guide you through the process.
Do I Need a Buyer's Agent When Looking For a Newly Built Home?
As a buyer looking to build a home, or purchasing a spec home directly from a builder, you should have a buyer's agent working with you. Builders co-operate in compensating buyer's agents, so it won't cost you more. If a on site agent should suggest that you not bring an agent, it would be wise to take a step back. On site builder representatives, work for the builder. By law, they cannot represent you as a buyer's agent. So working directly with them would mean you forfeit your right to your own representation.
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Home Search Process