|
Especially if you don't think you need one! Here's what leading magazines & newspapers say about the importance of Buyer Representation CHICAGO TRIBUNE "Hiring a buyer's broker costs the home buyer nothing extra." CONSUMER REPORTS "You can't have partial loyalty, an agent either works for you or works for someone else." MONEY MAGAZINE "A recent study by U.S.Sprint found that 232 relocating Sprint employees who hired buyer's brokers paid an average of 91% of a home's list price. People who use traditional agents typically pay about 96%. On a house originally priced at $150,000, that's a difference of $7,500. SMART MONEY "Groups such as the Consumer Federation of America and AARP recommend using buyer's brokers" KIPLINGERS PERSONAL FINANCE "Buyer's brokers work only with buyers and don't take listings They're obliged to help you find the best deals and lowest price. "Bottom line: You don't truly have an advocate in your corner unless you both sign a contract saying so." You're are about to make a large investment that may change your life. You're buying property in Maine. Let me ask you a question..... Who do you want to represent your interests? A real estate agent who works for a traditional mega-broker — who spends most of their time listing property for sale? Or — a Buyer Agent, who specializes in exclusively representing the interests of the buyer? When you need heart surgery, do you want a general practitioner or a heart surgeon? As a Buyer Agency — we're specialists — we never list property for sale. We never represent sellers — EVER! You can be confident in knowing that we will always (100% of the time) be on your side. Any possibility of conflict of interest is eliminated because the Buyer Representative never accepts a listing. You have the added pleasure of not having to deal with a salesperson who is “trying to sell you a home." With a Buyer Broker, you deal with your own consumer advocate and "Real Estate Coach" - whom you can trust. We give you our unbiased opinion and analysis, superb negotiation, transaction management, and true advocacy. Plus you see every property that meets your criteria over hundreds of miles of the Maine coast. The Buyer Representative is not afraid to disclose: • That the foundation has settled • The lot has poor drainage • Other properties have better value for your money • The home has structural issues • There's a large new development going in nearby • The well water is of poor quality or the septic system has failed • The seller is in financial trouble and will take less than the asking price • You've found a really good value and shouldn't hesitate Your purchase depends on knowing all the facts — good or bad. We are legally accountable to the buyer — not any seller. Because the Buyer Representative enters into an exclusive agreement with the buyer, all information provided to them, such as budget, motivation to buy, timing issues, and even your identity (if that's important to you) is kept confidential. You will never be abandoned for dual agency and will be protected 100% from start to finish. Best of all, Buyers Representation does not cost the buyer more, as the fee is paid from the transaction via the sellers listing agreement where they agreed to have the listing agent advertise the property in the MLS and offer a percentage for any outside office who brings a buyer. the importance of Buyer Representation BUSINESS WEEK "A traditional real state broker is legally bound to work for the seller who pays the commission and therefore may be more intent on selling listed homes than finding your dream house. Such agents must pass on information such as the buyer's income to the seller, who then has a better idea of what price to hold out for." "Because these (Buyer) brokers are obliged to get buyers the best deal possible, they approach a house with a critical eye for apparent flaws. Buyer brokers also show properties sold by the owner, which can be cheaper because the only commission is what you agree to pay your broker. Sellers' agents usually won't show these homes because they don't make commissions on them." "A well trained, experienced buyer broker is a great asset," says Peter Miller, author of "How to Sell your home in Any Market." Usually the buyer broker splits the sales commission with the seller's agent, just as a subagent who didn't have the listing would the broker who did. So the fee still comes out of the sale price. Some people might assume that buyers' agents have an incentive to keep the price high. But again, the broker must get you the best deal. "In my experience, all of them do." says Stephen Brobeck, executive director of the Consumer Federation of America. KIPLINGER'S CHANGING TIMES "Exclusive agencies are the best. They remove any conflict of interests, which is the main reason for considering a buyer broker in the first place." SMART MONEY "Groups such as the Consumer Federation and the American Association of Retired Persons recommend using buyer's agents...the reason is they work." MONEY MAGAZINE "You save big bucks by hiring a buyer broker." U.S. NEWS AND WORLD REPORT "If your agent isn't a Buyer Broker - he works for the seller" BUSINESS WEEK "Exclusive buyer broker -- aims to get best deal for home buyer." CONSUMER REPORTS "As the FTC noted: 'many buyers may run several risks...if they identify as 'their broker' a person who is not in fact intending to act as their agent." For example: A buyer may "reveal BR> information he or she might otherwise wish to keep confidential" because such information would help brokers working for the seller in obtaining the highest price for a home. A buyer may believe a broker is "'scouring' the market...as a representative, when in fact, he or she is picking out those properties...which both meet the buyer's criteria and which also will bring in a large commission..." A buyer may assume that the broker will use his or her expertise to discover defects in a house, when without a contractual agency relationship, the broker may feel he or she has no duty to do so. Survey data from the study revealed that, in many transaction, sellers were informed by agents about how much buyers might be willing to spend, while most buyers expected such information would not be revealed. Such double dealing can also work against sellers, if their agent isn't protecting their interest, but seeking simply to close a deal. For example, sellers can be required to refund the buyer's money if the seller's agent (or subagent) misleads the buyer about the nature of their relationship or facts about the house. DUAL AGENCY Many large firms have indulged in the lucrative practice of "in-house sales" in which only one company is involved in listing the property and producing the buyer. In other words, the same company acts as the seller's agent and buyer's agent in the same transaction to pick up the 6% or so set aside to pay two agents. Recent laws such as "Disclosed Dual Agency" would appear to minimize broker liability for this "double dip." At the very least, you should look for companies that subscribe to a "single agency" policy or "exclusive buyer agency" policy. Steer clear of companies that offer disclosed dual agent as a policy. Remember, the first question you should ask your broker is: "whom will you represent?" |
