Dealing with a

BUYER AGENT

Buyer agency is relatively new to residential real estate sales. It has been around for a lot longer in commercial real estate.

Simply stated: The buyer signs a contract with a real estate agent, wherein the agent agrees to locate a home for the buyer, based on their wants, needs and desires. In turn the buyer agrees to pay a commission to the agent, when the home selling transaction is completed, for his/her time, services, expertise and representation.

This is an ideal situation for a “For Sale by Owner”, because the agent’s potential buyer has already agreed to pay their agent any commissions due when they purchase a property.

All that is necessary is for the buyer agent to register his/her client (buyer) with you. This is to protect both the “For Sale by Owner” and the buyer agent.

At closing the agent still gets his rightful commission, just not out of the FSBO’s pocket.

In this situation it is very important that you keep 3 things in mind:

1) A buyer agent’s job is to represent the interests of his client.
Always remember that they are working for the buyer, not you! He/she will act to get the best price and terms possible for their client. They will point out your home’s good points as well as any potential problems. Never tell the buyer agent anything that you don’t want repeated to the buyer. He/she is obligated to disclose all information to their client.

2) When discussing a contract, be sure your costs and the buyer’s are clearly identified.
You may get your price, but the buyer or the agent will ask you to pay for the appraisal, home warranty, inspection, title policy, improvement survey, etc., etc. Don’t give away the farm. More details on this can be found on this site in NEGOTIATIONS.

3) The Closing is still your responsibility.
After a contract has been agreed upon, you will need to stay on top of the title company and the buyer agent who is responsible for getting the buyer’s mortgage and appraisal done in a timely fashion and according to the terms and conditions of the contract.

As stated previously, I strongly urge that you discuss this approach to selling your home with your attorney.

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