Buyer's Agency Representation

Why you need a Buyer's Agent to Represent You?

Take a moment to watch the video below to understand the Buying Process.  You will see that a Buyer needs someone to Protect their interest in terms of finding the home, helping to understand comparables so you can make the best offer, and then helping you to review all disclosures and reports.   Finally the Buyer's agent manages the Closing so your home closes according to YOUR Purchase Agreement.

Summary: Buyer Agent vs Seller (Listing) agent

Buyers agents are fiduciaries (have a legal responsibility) to their Buyer Clients to represent the Buyer's inerest.

Listing or Selling Agents have fiduciary responsibility to the Sellers to protest the Sellers interest.

Buyer Representation Agreements - Quick Guide - This Quick Guide shows why the Buyer's Agent and the Buyer should complete the Agreements and how which agreements are used in the Buyers Purchase Offer.

The Home Buying Process

ON DEMAND REALTY AGENTS ARE BUYER'S AGENTS

Please Review Below For More Information

WHAT IS A BUYER'S AGENT? AN AGENT DISCLOSURE?

A Buyer's Agent (See video above) represents the buyer's interest and has a fiduciary duty to find the best house at the terms most favorable for YOU, the buyer.  As the Buyer this relationship MUST be disclosed to you and you must acknowledge that the agent you are working with represents You, and place this in writing before any transactions or showings are initiated.  At the same time, when an offer is made to the Seller's Agent, your Buyers Agency Disclosure must accompany the offer so that the Seller is fully of the agency relationship in the transaction.

NOTE: If the agent is working only as an agent or subagent of the seller, then the participant is not "working with the buyer." In that scenario, an agreement is not required because the participant is performing work for the seller and not the buyer.

Authorized dual agents, on the other hand, work with the buyer (and the seller). Get more facts about NAR's proposed settlement agreement at facts.realtor.

Source: REALTOR Magazine May 6 2024

WHO PAYS THE SALES COMMISSION? (see video above)

Up until recently (2024), the Seller, working with the Listing Broker, would agree what amount of sales compensation they might offer the Buyer's Broker once the transaction closed.  Today, it is REQUIRED for the Buyer and Buyer's agent to complete a Buyer Agent Agreement and to submit that to the Seller and Listing Broker for sales commission when the deal is closed OR, the Buyer can agree to compensate the Buyer's Broker directly independently of the Seller. 

The Buyers Agency Agreement defines the services and costs the Buyer is responsible for the Buyer Broker.  Should the Seller be willing to pay a sales commission to the Buyer's Broker, this must be disclosed to Buyer and any such funds earned by the Buyer Broker will be used to cover the Buyers Broker Compensation as defined the Buyer's Broker Agent Agreement.

The seller of the home continues to pay the Listing Broker commission out of the proceeds of the sale in most typical transactions. If a Buyer's Broker Agreement is presented, and the Seller authorizes the Listing Broker to compensate the Buyer Broker Broker, then funds can be disbursed after Closing to Buyers Broker.  This is all handled at the close of escrow. There may be transactions where the Buyer agrees to compensate the Broker to find a home and the seller is not willing to pay a commission. This type of transaction needs to be mutually agreed upon by both the Broker and the Buyer and is typically covered in an Exclusive/Non-Exclusive Buyer Agency Agreement.

DO ALL BUYERS AGENTS CHARGE THE SAME COMMISSION RATE?

(See video above) Real estate agent commissions are negotiable so there is not a set market rate.  To do so would be illegal.  Instead, all real estate agents should be open on their commissions and be completely transparent and up front when working with you.  They should explain how they will assist you in the home buying process. This would include:

• Understanding your needs - where (location), price, amenities (size, rooms, lot size)
• Targeting homes that will match your needs - keeping you informed of all listings for you to view,
• Arranging showings of Homes you select
• Preparing Comps of Homes to help in your offer strategy
• Prepare your Purchase Agreement and Disclosures to protect you and your offer
• Once Your Offer is Accepted - work with you through the Closing Process to protect you and close on time

Also, remember the old addage, "You get what you pay for" applies to real estate as well.  Buyer's Agents are Real Estate professionals that represent YOU, the Buyer in the transaction.  Of course we feel that On Demand Realty Buyer agents are the BEST.  We have a record of closing 100% of our Offers on time, 100% of the time.  This means we understand the process and mange it so you can feel comfortable and enjoy your New Home.  

WHAT ABOUT ATTENDING OPEN HOUSES?

Yes, attend Open Houses and with your Buyers agent. If you prefer to attend alone, them make sure to let the open house host know you have an On Demand Realty agent you are working with.  This will save you from numerous follow-up calls from listing agents trying to sell the homes you've visited.  Instead, let your On Demand agent know which homes are of interest to you so they can do further research for you and help in the Buying process and become YOUR Byers Agent!

For your Review - Buyer Agent Forms -

Below are a list of the forms that are used between YOU, the Buyer and the Buyer's Agent.  These forms are to protect your interest by clearly disclosing the actions, responsibilities and costs for the Buyer and the Buyers Agent. 

Click the links to review these forms online. 

We are glad to discuss them with you so we can go with you to show homes, make offers, and help you through the purchase and closing process.

1. Buyer Representation and Broker Compensation Agreement (BRBC)
2. Anticipated Broker Compensation Disclosure (ABCD)
3. Buyer Transaction Advisory (BTA)
4. Cancellation of Buyer Representation (COBR)
5. Notice of Broker Involved Properties (NBIP)
6. Seller Payment to Buyer's Broker (SPBB)

MORE INFORMATION FOR BUYERS - CLICK THESE LINKS

• THE 5 STEPS OF BUYING A HOME

• First Time Home Buyers click here for some helpful information.  

• Click here for a Free Copy of the On Demand Realty Buyer Answer Book

• Click Here for Buyer Frequently Asked Questions.

• What is an Escrow?

Ready to Get Started or Have Questions?

Call 925 709 4801 or email Bob Lowry, Broker/Owner at Bob@OnDemandRealty.net for a FREE consultation.