What is buyer agent representation? Why would someone buying a home want a real estate agent to represent them? How much does it cost?
Buyer agent representation is when a real estate broker assists and represents a buyer in a real estate transaction. Representation is agreed upon in a written contract between the buyer and agent. A Buyer’s Agents performs many duties, including: helping buyers identify what their wants and needs are, locate and show properties that will fulfill their wants and needs, submit and negotiate the best possible offer to the seller on behalf of the buyer, help the buyer evaluate counteroffers, perform all communications and follow-up inquiries with the seller, and inform buyers of any actions that are needed to insure the transaction closes as smoothly as possible. Other duties of buyer agent representatives include educating buyers on: the real estate market, financing, trends, neighborhoods, and providing informational sources on these and other topics. A buyer’s agent may also suggest a list of potential real estate service providers, such as lenders and home inspectors; but not to select service providers without expressed consent from the client.
A real estate agent is more informed than even the most determined and motivated buyers. Certainly, buyers should educate themselves, but they can only benefit by having a real estate professional working for them. An agent representing a buyer works exclusively for the buyer’s benefit. Any real estate agent in Oregon should provide a pamphlet from the state that defines an agent’s duties and responsibilities in representing buyers and sellers.
Finally, a buyer seldom needs to pay for the services of an agent to represent them. That is correct. The cost of services is typically free, to the buyer. Sounds too good to be true? This is because the selling agent is typically willing to split a portion of the commission received by the seller at closing. This amount is predetermined, typically by percentage of commission, and is provided as part of the listing information on the home for sale in the multiple listing service. By cooperating with the selling agent, he or she is willing to pay for the buyer’s agent for the services. The buyer’s agent conducts all business on good faith and duty as required by personal integrity and real estate law, but only owes loyalty to the buyer that the agent represents.
