Why Do I Have to Sign Paperwork Just to See a House?
Should you have your own Buyer’s Agent?
When you request to view a home, the agent may WILL require a Buyer’s Rep Agreement before showing you the house. You’d probably like to know why! The good news is, it’s for everyone’s benefit. The form is the Residential Buyer/Tenant Representation Agreement. It is a contract between you (the client) and the REALTOR / Broker that is showing you the property. The agreement spells out how she will work for YOU and represent YOUR best interests in the transaction and also spells out how the broker is paid. Update: As of August 17,2024, Realtor® members are required to have a signed Buyer Representation Agreement before showing any homes.
Why is a Buyer’s Rep Agreement good for you?
- Your Agent represents YOU and is your advocate during the transaction. You have a dedicated agent that is your go-to resource for showings, questions, offers and everything related to your transaction.
- Is your contact throughout the entire buying process–will hold you hand and make sure everything is completed on time and the way you want it.
- Will help you with financing suggestions, neighborhood information, offer documentation etc
- Finding the property and providing objective information about each property (and it’s true market value!) and also providing local community information on utilities, zoning, real estate taxes, current market conditions, schools, etc.
- Your Buyers agent is negotiating for YOU! There are many factors that go into successful negotiations, including but not limited to: price, financing, terms, date of possession, repairs and appliances. When you have a dedicated buyer’s agent, you are their only client in the transaction. They have no loyalty to the seller, the only loyalty is to YOU! Your needs come first!
- Your agent will assist with coordinating due diligence during the inspection period, which may include: general property inspections, termite inspections, septic and well tests, and more. Your agent can assist you in locating and coordinating the inspection professionals and will be with you at the inspections.
- Your agent will be with you at closing to make sure everything YOU need in the transaction is done correctly and timely.
- The agreement can be for any amount of time–from one day to months or longer. So, if you’re not 100% ready to commit, it’s okay! The good news is, you can commit to one house or one afternoon until you are comfortable that you are working with the right agent!
A Buyer’s Representation agreement is like an agreement to “go steady” during your home purchase. You agree to only work with your agent and your agent works with you!
Buyer Representation FAQs
How much does it cost?
Compensation structures are not standardized and are negotiable, so it depends on your agreement with your agent. In many cases of properties listed on the MLS, the buyer’s agent is paid by the listing agent (through a “co-op” fee) or via seller buyer agent compensation offer. UPDATE: As of August 17, 2024, offers of buyer agent compensation are no longer allowed to be advertised via MLS, so your agent will find out in advance if your buyer agent fee will be covered before touring each property. The buyer’s agent is bound by contract to advocate for the best interests of the buyer (YOU) only! There are times when the buyer must pay out of pocket for representation—typically if the buyer is purchasing a “For Sale By Owner” property or if the listing does not offer buyer agent compensation. If there is an out of pocket commission on your purchase, fee schedules/options will be discussed well in advance, so there will be no surprises.
If I don’t use a buyer’s agent, won’t I save half the fee? Isn’t it cheaper if I call the phone number on the “For Sale” sign in the yard?
Can’t I buy the house cheaper if I call the agent whose name is on the sign?
Who pays the compensation if I use a buyer’s agent with a “for sale by owner” home?
I want a Buyer Rep! How do I get an Agent?
Call 903-729-7530 and we will get started! It is a very simple contract called a “Buyer’s Representation Agreement,” which outlines everyone’s expectations and compensation, so that we all know clearly what to expect! Think of it as “going steady” with a real estate agent during the transaction—she/he will be your contact point through the entire transaction.
I hope this helps you to understand why using your own Agent is in your best interest! Whether you choose me as your Agent or another REALTOR, be sure to make sure YOUR interests are represented in the transaction!
