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So you've decided to buy a
home or investment tract?
Purchasing real estate is a complex and major transaction with many
details to be handled.
Depending on the laws in your state and the business arrangement you
have with a licensed real estate agent, that agent may actually be
negotiating for the seller, not you the buyer. The best way
to be certain that an agent is working in your best interests is by
signing a buyer representation agreement with an agent.
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What is a Buyer's Representative?
A real estate buyer's representative
represents the buyer who is purchasing property in a real estate
transaction. Research by the
National Association of REALTORS has shown that when a buyer's
representative is used, the prospective buyer found a home one week
faster and examined three more properties than consumers who did not
use a buyer's representative.
The buyer's representative works for,
and owes fiduciary responsibilities to, the real estate buyer and
has buyer's best interests in mind throughout the entire real estate
process. A buyer's
representative will:
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Evaluate the specific needs and
wants of the buyer and locate properties that fit those
specifications.
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Assist the buyer in determining the
amount that they can afford (pre-qualify), and show properties
in that price range and locale.
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Assist in viewing properties --
accompany the buyer on the showings, or preview the properties
on behalf of the buyer to insure that the identified
specifications are met.
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Research the selected properties to
identify any problems or issues to help the buyer make an
informed decision prior to making an offer to purchase the
property.
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Advise the buyer on structuring an
appropriate offer to purchase the selected property.
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Present the offer to the seller's
agent and the seller on the buyer's behalf.
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Negotiate on behalf of the buyer to
help obtain the identified property -- keeping the buyer's best
interests in mind.
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Assist in securing appropriate
financing for the selected property.
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Provide a list of potential
qualified vendors (e.g. movers, attorneys, carpenters, etc.) if
these services are needed.
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Most importantly, fully-represent
the buyer throughout the real estate transaction.
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The
Buyer
Representation Agreement
It is important for the buyer to
discuss the buyer's representative's compensation in the initial
interview. In many cases it is recommended that the buyer and the
buyer's representative agree to the terms of compensation prior to
viewing properties, and sign a written agreement based on those
terms. The agreement should spell out the responsibilities of both
parties throughout the real estate process.
In some states, legislation has been
enacted to protect the buyer to the point that, absent a written
agreement, the buyer's representative represents the buyer
throughout the real estate transaction.
Consult your Appalachian Realty for
complete details. |