A recent article in the Chicago Tribune posed 4 questions that every home buyer should ask their agent. We’re passing along the insights from this article, along with some advice of our own!
Most home buyers do not understand the distinctions in service that different types of agency provide. For example, 90% of Millennial home buyers sought the guidance of a real estate professional in the past year. In many cases, these buyers relied on referrals from family and friends. While this seems like a reasonable approach, it places buyers with agents who may not serve their best interests 100% of the time.
To know whether you are working with the right agent for your needs, you should be asking some hard questions! Here are the questions that every Columbus home buyer should ask their agent:
- Who are you representing? Many times, agents say they “work with buyers” or that they are “buyer representatives,” but this is not sufficient for your interests. Agents who engage in dual agency are transaction facilitators and are not true advisors!
Only an Exclusive Buyer’s Agent can serve a home buyer without the inherent conflicts of interest that exist in dual agency or designated agency. See our blog post, “10 Reasons Why You Need an Exclusive Buyer’s Broker” for important details.
- What buyer services do you provide? It’s important to understand the exact role of your agent. While virtually any agent claims to “help with your home search,” an Exclusive Buyer’s Agent counsels you through every step of the home buying process.
We will tell you how to make a successful offer based on the present market conditions. We will negotiate tenaciously on your behalf. At Buyer’s Resource Realty Services, we also provide unique purchase contracts that are written with buyer’s needs in mind.
In addition, we have a robust network of home service providers, mortgage lenders, attorneys and home inspectors. We have local expertise throughout key markets in Central Ohio.
- How are you compensated? Traditionally, the seller pays a commission on the sale of their home. The commission is shared between the listing agent and the buyer agent. This is why some agents like to practice dual agency – it gives them a bigger slice of the pie! That works out well for them, but not for you.
In the case of an Exclusive Buyer’s Agent or Exclusive Buyer’s Broker, we are compensated by the home seller. If the seller is a home builder or sale-by-owner, we negotiate our compensation directly with them. At all times, our fiduciary duty and loyalty is to you, the home buyer client.
- Do you require a signed agreement? As your Exclusive Buyer’s Broker, we do have a Buyer-Client agreement that formalizes our relationship with you. This commits us to working diligently on your behalf, finding the right home for you and negotiating the best possible price and terms. It also means you agree to have us represent you throughout the home search and purchase process, and to let us obtain a commission from the seller. In short, the agreement is for our mutual protection.
As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.
Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!
Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!
Andrew Show
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax
