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Hiring a real estate buyer's agent can be a daunting task to some potential buyers. Their first thought and concern is that the agency will not perform, therefore leaving the buyer to do most of the work and still have to pay whatever the outcome might be. The realities of hiring a real estate buyer's agent are listed below in three sections. Read and consider each one to determine whether or not this is the right decision for you.Reality #1: When you buy, you pay for agency whether you get it or not. A buyer's agent is usually considered as a breaker. The buyer's agent sets up the property for you to view, and is involved in breaking the deal. The real estate buyer's agent uses their expertise and knowledge that is at their fingertips to procure a property for the buyer, along with their association with real estate agents. You might expect using the buyer's agency would cost more, but this is not always the case. Although there might be circumstances where agents charge an hourly rate or flat fee, in most cases they are working for the same commissions that is paid by the seller and split it with the seller's listing agent. Reality #2: Paying a real estate buyer's agent does not make him or her an agent. The law prohibits third parties, including the seller and all sellers agents, from interfering in the contractual agreement between you and your real estate agent, and in all such agreements in which they are not participants: Incredibly, evidence abounds of flagrant fee enforcement by listing agencies upon Real Estate Buyer Agencies, sometimes even put in writing by listing brokers who physically change the buyer agent fee right on the buyer's offer. In this folly, they are blatantly supported by arbitration boards and their local, state, and national trade associations (dominated by listing agents) who, by sheer institutional weight, impose the buyer-procuring cause standards of the listing agreements upon real estate buyer's agents who are not party to the agreements and where there is no buyer-procurement. From your standpoint as a buyer, it is up to you to discuss with your agent what method of payment is best for you. By and large, a real estate buyers' agent will not risk the client's purchase for the satisfaction of standing up to the bullies or even the principle of opposing corruption. Your agent, your real agent, will put you first! When they are caught in the middle between their own client's desire for a particular property and the listing agent's willingness to block acceptance of the offer over the fee issue, they inevitably relent, sometimes at financial cost.Reality #3: An EBA not in an EBO is not an EBA; and only an EBA is a true real estate buyer's agent! (Rare exception: very small office? True single agent.) EBAs in individual areas have worked out their own fee-payment methods for dealing with this situation, given local mindsets (or mindLESS sets). The bottom line for you is that it almost always puts the fee in the purchase price which can be borrowed, and a true buyer's agent will do what is needed to see that you get your home. Thus, your short-run interests will be served, but possibly at the expense of your long-term interests as a consumer in a just system. Understanding the pure model described above will help you put your EBA's method in perspective and make decisions you can feel right about when you make your own offer. Be careful out there. |
