Homebuying Articles, Tips
and Information
 Buyer
Beware: Who Really Works For YOU?
You and your significant other decide to take a drive and check
out some of the open houses in the neighborhood. Before you know
it you're walking through the door of a charming home, speaking
to an equally charming Realtor who's telling you all the virtues
of this wonderful home.
And then he pops the question: "Are you working with an agent?"
When you tell him you're not, suddenly you are his new best friend,
and he's relating all the great things he can do for you as your
agent. It all sounds so wonderful... yet it's the same you've been
told by every Realtor you've ever met. So how can you really tell
if you can trust this agent to look out for your best interests?
Indeed, the most important detail you're not being told at this
point is this: If you use the listing agent of the property to act
as your agent in the purchase, then your agent will NOT be working
primarily for you, but rather the seller.
The simple fact is that the listing/seller's agent has been hired
by the seller to represent the seller's best interests, not those
of the buyer. And part of the listing agent's responsibility to
the seller is to disclose all material facts they discover about
the buyer - in other words, everything they discover about YOU!
Can This Be A Problem?
Well, consider this: Suppose you have $5,000 in the bank and you
wish to purchase a home with a VA No-No - no money down and no closing
costs. In the offer - written by the listing agent - you ask the
seller to pay all the closing costs, estimated at $5,000.
Now what do you suppose the seller will do with an offer asking
them to pay $5,000 in costs when they know you have $5,000 in the
bank, a fact they learned because "your agent" was obligated
to tell them?
There's another important factor to consider: In Virginia, ALL
agents technically work for the seller in the transaction, either
as the listing agent or a sub-agent to the seller through the MLS
listing agreement. ONLY with a written agreement between the buyer
and his agent can the buyer be assured exclusive representation.
We accomplish this goal with a Buyer-Brokerage Agreement. This
form "allows" us to represent our buyers exclusively,
with no loyalty or responsibility to the seller. And the most important
thing to remember: WE STILL GET PAID BY THE SELLER through the commission
agreement.
So, in essence, the buyer in this case has the best of both worlds.
Exclusive representation by a professional Realtor without having
to pay for it!
And since we're talking about exclusive representation, there's
a very simple rule in real estate which can save you literally thousands
of dollars of out-of-pocket money when buying a home: Enlist the
services of your own agent, not the agent representing the seller!
Sounds simple enough, doesn't it? But you'd be surprised how many
people think they MUST use the agent whose name is on the sign.
This simply isn't true. As long as the home is in the Multiple Listing
Service, you can use any agent to represent you. And best of all,
it doesn't cost you anything extra to have your own representation.
We're not telling you all this to scare you. There are plenty of
listing agents who can represent both sides of the transaction and
do so ethically. It is legal, with the proper disclosure to you.
The question is, why would you? In essence it's like using the same
attorney to represent both you and your spouse in divorce proceedings.
Not a smart idea!
So now that you see the logic in having your own agent, here are
a few other important things to remember:
Nearly all agents - probably 99.9% of them - work on commission
only. If you don't buy a home, we don't get paid. SO as realty agents
we are doing everything in our power to:
- Help you qualify to buy a home
- Find the home you wish to buy
- Make sure the transaction goes smoothly and with least amount
of problems.
Only by meeting these three goals will we get paid.
Also there is unquestionably a lot of work that goes on between
the initial phone call and receipt of our commission check - a lot
of work which goes completely unpaid if we don't find you the home
to buy.
Yet we are loyal to OUR clients. We ask the same in return. This
is all common courtesy and common sense.
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