Buyer Agency Explained

1. What is "buyer agency"?

Buyer agency is the highest level of client representation afforded to a buyer by a real estate professional. When you engage a "buyer's agent" your real estate professional is required to represent and look out for your interests at all times - as long as those interests are not illegal.  

2. Why is this of value to me as a buyer?

The seller or builder of a property is represented by the "listing agent." In negotiating price and terms, the seller has an advocate to represent their interests, but, unless you have executed a buyer agency agreement with your agent, your interests are NOT represented. In fact, if you work with an agent "without a buyer agency agreement", the agent is prohibited from giving you any professional advice or guidance - to do so would be practicing illegal undisclosed dual agency!  

3. What is required of me to receive this level of representation?

A written and signed "buyer agency" agreement is required by Georgia law.  

4. What will a real estate professional do for me as my buyer's agent?

You will be afforded a much higher level of service and protection than when working with an agent without a buyer agency agreement. Your buyer's agent will analyze information such as comparative market data, advise you on negotiating and wording a purchase agreement, and, in general, act as your advocate in the purchase process.  

5. If I decline "buyer agency," who represents my interests?

If you decline "buyer agency," you will not have a representative to look out for your best interests. In fact, your agent may be required by law to represent the interests of the seller. You are on your own! Worse, for subjecting yourself to all the extra work and risks you get to pay the same price for your home as if you had used a buyer’s agent - probably more. How? Sellers and builders don't lower the price of a home just because a buyer walks in without a buyer’s agent - some buyers are not aware of this fact. A good buyers agent has superior market insight and access to accurate market data that consumers rarely possess, and has experience on many more transactions under all kinds of conditions, - the professionals edge allowing a purchasing strategy that can result in a much better deal!

 6. How much does this service and representation cost me?

Actually, in 99% of all residential real estate transactions, the seller pays all commissions and the buyer receives the full benefit of professional representation. You may want to instruct your agent to show you only those properties for which the seller has agreed to compensate the buyer's agent - almost every available home including, all properties listed in the MLS (every home listed by any agent or Realtor), all new home communities and builders new homes. As the buyer your exposure to paying your Buyer Brokers fee is basically limited to a very small segment of the market, For Sale by Owner (FSBO) homes. Even in this tiny market segment, on average well over 50% of these FSBO sellers advertise to pay a Buyer Agent fee. A good Buyers Agent can often negotiate his fee from FSBO's who are at first adamant that they will not work with an agent. Your buyer's agent will address all such cost issues and any other questions at the time you are presented the buyer agency agreement. Be sure to ask your buyer's agent every question you have no matter how basic it may seem. Your buyer's agent represents you!

7. What are my responsibilities as a buyer in this agreement?

In this agreement, you agree to handle all real estate concerns through your agent. You agree neither to seek real estate information nor to view or purchase any property without your buyer's agent.

8. Who decides if I am represented or not?

As the buyer, you alone may make that decision.

9. Why would someone not want buyer's agent representation?
We have yet to hear a good reason why a buyer would refuse representation, especially since it’s free. In our experience, buyers without buyer's agents simply have not been informed that they have a right to be represented.

10. I found the house I want to buy - do I still need a Buyers Agent?

Absolutely! Finding a house is only one part of the process - there is still much more work and a lot of details to assure a sound purchase. Unless you know the housing market, how to locate and adjust accurate market "sold comps" to arrive at the best price, how to draft and adhere to real estate contracts and amendments, and how to protect your interests and avoid subjecting yourself to legal action as well as an experienced Buyers Agent - our answer is YES! Leaving something to chance, or a mistake made at any point of your transaction can have lasting financial and emotional consequences. There is no reason to go through the risks and hassles alone when the services of your Buyers Agent are free! Not using a Buyers Agent is like being given the funds to hire an attorney, but instead choosing to go to court alone to fend for yourself!

The more one becomes aware of how complex real estate matters really are, and the potential for problems that require more knowledge and experience than most buyers have, the more profound this phrase becomes! How a real estate transaction is handled can greatly affect your future happiness in your home for years to come.