Buyer Agency Versus Going It Alone

Have you heard about Buyer Agency versus going it alone? Did someone tell you it was some kind of trap you don’t want to get yourself into?

Have you taken time to find our the facts?

Have you been calling listing agents off of the MLS system and going out to see them with the listing agent thinking somehow you would get a better deal if you avoided one agent in the process of purchasing a home?( Secret: the commission doesn’t change, but you may pay more for the home that way)

We have done an analysis for you below of using a Buyer Agent versus going it alone. We’d like to suggest you take the time to read itand understand the ramifications.

Buyer-Client (has hired a Buyer Agent to Protect their Rights)

Confidentiality: Under buyer agency, the buyer can feel secure to divulge information without the fear of harming their negotiating position.

Buyer’s Needs: Under buyer agency, a sales representative is obligated to pay full attention to all of the buyer’s needs. This can include, but is not limited to, financial, timing, motivation, familial, etc. This representation will come without an obligation to match the buyer to a seller-client’s property.

Full Access: under buyer agency, it is the responsibility of the sales representative to ensure that the buyer has access to the entire market. This includes private sales, expired listings, properties listed exclusively, etc.

First Opportunity: Under buyer agency, a buyer-client should know that he/she will have first access to any new opportunity that comes up. Be it via MLS, or any other means at his broker’s disposal.

Educating the buyer: Under buyer agency, the sales representative is obligated to assist the buyer in making an objective comparison of all competing properties, comprehensive enough for the buyer to make an informed decision as to the value of the property in question and to make an offer accordingly.

Price: Under buyer agency, the sales representative is obligated to provide counseling on protective clauses for the buyer to make the most informed decision, irrespective of the seller’s asking price.

Clauses: Under buyer agency, the sales representative is obligated to provide counseling on protective clauses for the buyer. Some examples may include, but are not limited to, financing and the time needed to get financing or an appropriate home inspection clause.

Financing: Under buyer agency, the sales representative is obligated to assist the buyer in finding the most suitable, or best financing available for the buyer. This may include such details as rate, amortization, terms (institution), Vendor take backs, or any one of many scenarios available to the buyer.

Negotiating: Under buyer agency, the sales representative is obligated to provide negotiating strategies and techniques that are in the best interest of the buyer.

Previous offers: Must share all known details of previous unsuccessful offers, or any other information that strengthens the buyer’s negotiating position.

Knowledge of any personal information about the seller must be shared with the buyer, including but not limited to, the price the seller is willing to accept, a price that has already been accepted, a price that has already been rejected, as the case may be, and the sellers motivation.

Buyer-Customer – Going it Alone, works with listing agent

Confidentiality:If the buyer is a customer, all information gained about that buyer will be shared with the seller to enhance the negotiating position of the seller.

Buyer’s Needs:If the buyer is a customer, then the sales representative is not obligated to satisfy any particular needs other than dealing fairly, honestly, and with integrity with the buyer-customer.

Full Access:As a buyer-customer, the sales representative is acting as a sub-agent and has no such obligation to the buyer.

First Opportunity:A buyer-customer may have access to all potential properties, but only after the buyer-client has been given first opportunity, and not if it conflicts with the buyer-client’s desire for property

Education:Acting as a sub-agent, it is the obligation of the sales representative to present comparable facts that protect and enhance the value of the property in question.

Price:Provide price information to the buyer that supports seller’s listing price. Negotiate clauses that are in the best interest of the seller, which may include, but are not limited to closing dates, chattels, or a condition on the seller being able to purchase another home.

Clauses:Under sub-agency, the sales representative is obligated to negotiate the best financing clause in the interest of the seller. This may include, but is not limited to, 1)The time it takes the buyer to get financing, 2) Removing the financing condition from the offer, 3) Negotiating a VTB in the best interest of the seller.

Under sub-agency, the sales representative is obligated to provide the seller with strategies and techniques that are in the best interest of the seller.

Must share knowledge of previous negotiations the buyer has been in, enhancing the negotiating position of the seller.

Financing: Must share information about the buyer which may include but is not limited to: financial information and ability and/or willingness to pay more, motivation, and ability and/ or willingness to change closing date.

If you would like us to sit down and discuss Buyer Agency with you give us a call – The Great Life Team at (647)886-1550.  We will be happy to take 10-15 minutes to explain the Buyer Agency Agreement to you.  This removes the fear and helps you get the representation that you need.