|
Benefits of Using A Buyer Agent
What added benefit should I expect from using the
services of an EBA (Exclusive Buyer's Agent)?
EBAs do their best to provide access to the entire
inventory of homes for sale, right from the very beginning:
Agents who take listings or work for companies that do, have a legal
obligation to their seller clients to show and attempt to sell those
homes first before showing other homes listed with other companies. An
EBA, on the other hand, has the legal obligation to show you all homes
listed or unlisted that meet your requirements.
Agents who take listings or work for companies that do, have a financial
incentive to show and attempt to sell those homes first. The company,
and possibly the agent as well, make a double commission. And many
companies offer a higher commission split with their agents for
"in-house" sales.
Traditional agents are reluctant to show FSBO (For Sale by Owner) homes
and many FSBOs are reluctant to work with traditional agents as well. An
EBA, on the other hand, doesn't need to have a FSBO sign any listing
agreement or agree to pay their fee before showing their home. Although
the EBA's fee will generally be included in the purchase price offered,
the EBA's fee is usually 1/2 of the fee most traditional agents will ask
for.
EBAs place a special emphasis on protecting buyer
clients:
Most so-called "standard" real estate purchase and sale contracts are
written to favor the seller or neutral in nature. EBAs know special
language that needs to be added in order to protect their buyer clients.
The traditional agent generally doesn't take the time to understand
contracts and generally doesn't want to rock the boat, so to speak, when
they have to present the offer. So the traditional agent rarely changes
or amends the "standard" language.
EBAs will refer their buyer clients to property inspectors who they know
won't hide defects and who they know will give an honest, straight
forward, report on the home's condition. There have been numerous
reports and TV programs about home inspectors in cahoots with real
estate agents. They fail to show certain defects so that the buyer won't
ask for repairs and therefore the real estate deal won't be canceled by
the buyer. If the inspector doesn't comply with the real estate agent's
request, the inspector won't get any more business from that agent or
their company. With an EBA, if the home inspectors don't do their job to
protect the best interest of the EBA's buyer client, that home inspector
won't get any further business from the EBA or their company, either.
EBAs will make sure that their buyer clients have the
information they need to make a logical decision with respect to buying
a particular home:
We all make decisions based on emotions. We fall in love with a home.
Yet, we also need to back up our emotional decision with logic. Is this
the right home? What price should we pay? Are there any defects or
deferred maintenance that we should be aware of? Where should we get our
mortgage and what mortgage program is best for us?
EBAs make sure that their buyer clients:
-
Meet with a mortgage counselor to review mortgage
program options, to get pre-approved for a mortgage, and to
determine the maximum mortgage amount and purchase price that "the
buyer" is "comfortable" with;
-
See enough homes to have a feel for the market;
-
Are provided with a comparable market analysis
showing comparable sales for any property that the buyer may be
interested in purchasing;
-
Have information about what the seller paid for the
property, how long they have owned the property, what improvements
they have done to the property, how long the property has been on
the market, how many times it has been listed, and at what prices;
-
Have an initial idea as to the condition of the
property and possible repairs or defects which need to be addressed;
-
Understand and agree to a negotiating strategy, an
offering price and terms, possible counter-offers, and maximum price
the buyer should pay;
-
Enter into a purchase and sale contract which
contains specific clauses and addenda to protect the buyer,
including contingency clauses for such things as: Attorney approval,
property inspections, and mortgage approval.
|
