A Buyer’s Agent is an advocate for the Buyer—not the Seller—in a real estate transaction. When working in Buyer Agency (a legally defined term in Colorado), the Broker owes fiduciary duties, including loyalty and confidentiality, to their Buyer/Client. A Buyer’s Agent works in their clients’ best interests throughout the entire transaction. To ensure that your working relationship is clearly defined, a separate written agreement sets forth the duties and obligations of both the Broker and the Buyer.
Why Should I Use a Buyer’s Agent?
Most likely, the seller of whatever property you’d like to buy will be represented by a Listing Agent or Seller’s Agent. Don’t you want the same kind of service as a Buyer? Representing the Buyer is an important distinction that can save you time, money and effort. Exclusive Representation provides personalized service AT NO COST to the Buyer (commission paid at Closing is offered through the cooperative MLS and shared between the Listing Broker and the Selling Broker). As your Buyer’s Agent I will:
- Represent you as a true client, not just a customer
- Show you the entire market with absolutely no bias
- Provide property value studies and give you price advice
- Research the seller or property to provide strategic insight
- Disclose any reasons NOT to buy!
- Pass on professional knowledge and strategies that will enhance negotiations
- Help you write an offer with only your best interests in mind
- Keep your bargaining and financial position confidential
- Negotiate with utmost good faith, loyalty and fidelity
Frequently Asked Questions: Buyer Agency
Q: How did Buyer Agency develop?
A: In 1983, a Federal Trade Commission study revealed that over 72% of all home buyers nationwide mistakenly believed they were being represented by the agent who was showing them homes. As a result, laws requiring agents to disclose exactly who they represent have been passed all over the country.
Q: Exactly how does Buyer Agency establish this contractual relationship to represent me?
A: Just as the Seller establishes a contractual relationship by signing a Listing Agreement, you establish a contractual relationship with your agent by signing a Selling Agreement. This provides CLIENT-LEVEL services and legal protection for the Buyer.
Q: How does a Transaction Broker facilitate the sale and work with both parties by not representing either one?
A: Both Buyer and Seller are considered “customers” and they waive fiduciary duties of exclusive confidentiality and undivided loyalty in order to allow the agent to assist both parties. The Transaction Broker has no brokerage relationship and no written agreement is required.
Q: Isn’t the agent who shows me homes representing me?
A: Unless you have a written Agency agreement with a real estate broker promising to represent only YOUR best interests, you may find yourself working with an agent who is obligated to act in the best interests of the Seller, or one who hopes to facilitate as a Transaction Broker without obligation to either party.
Q: An agent says he “technically” represents the Seller but says he will be fair and “take good care of me.” Isn’t that all I need?
A: Of course, the agent will try to be fair and helpful to the Buyer but in reality, they can only do so much without jeopardizing their license to practice. For instance, they cannot tell you if the property is overpriced or how to negotiate the best purchase price. In this case, “technically” means legally…so if the Seller has representation, shouldn’t you?
Q: How much money can a Buyer’s Agent save me?
A: Here are some typical ways I can help you save money:
- provide a property value study to evaluate true market value
- get the best purchase price and terms as a professional negotiator
- review builder incentives and sales history to level the playing field
- include repairs and extra considerations in the contract to protect you
- serve as a mortgage consultant by recommending lender options and reviewing estimates to help you make an informed decision