Are you ready to start along the path to purchase a home?
If so, it's likely that you'll hire a real estate broker to help you find the property, place an offer, negotiate the deal, and ultimately purchase your next home.
Before you sign the last page and place your initials on all the pages of the Buyer Broker Agreement (officially called "Exclusive Right to Represent Buyer Agreement" here in Virginia), make sure you familiarize yourself with the duties of the real estate broker whom you hire.
Of course you expect that the buyer broker (or buyer agent) will help you find a home. What else are they obligated to do when you sign the paperwork?
BUYER BROKER DUTIES:
- Seek property at a price and terms acceptable to the Buyer
By signing a Buyer Broker Agreement, the broker agrees to represent you and your interests. The broker or agent should be showing you homes that interest you, not ones that interest him or her. If you want 3 bedrooms, a fireplace, and a two car garage, and your agent spends a day showing you some 2 bedroom places without a garage or fireplace, it's time to fire that fellow and find someone who will listen to your needs. Set your price range and give your broker a list of the amenities and features you want and need so that they can best help you.
- Assist in the drafting and negotiating of offers and counteroffers
Ultimately, you select the price and terms that you want to offer on any particular home. The buyer agent will provide you the pricing data and other information to help you make an informed decision. This may include data on other comparable homes that have sold, market conditions, and potentially any information the agent has about the neighborhood or sellers.
Your offer, and subsequently the ratified contract, is a legal document. Make sure you ask your broker any questions you have before signing and obtain legal counsel if you deem it necessary or if your broker does not know or is not able to provide an answer to your question.
Negotiations occur throughout the transaction. Choosing a Good Negotiator for Your Real Estate Deal is crucial.
- Help establish strategies for accomplishing the Buyer's objectives
Your buyer broker represents YOU! As such, they should discuss with you various strategies for getting the home you want at the price and terms that you want. This may include assistance on determining an offering price, what contingencies to include, setting timeframes, and other strategies.
- Provide reasonable assistance to facilitate the settlement of the purchase contract
Throughout the process, your buyer broker should communicate with your lender, the listing agent, the settlement company, inspectors, and other people to make sure that they are all doing what they need to do in a timely manner to ensure you reach settlement. Make sure to read Who Are the Players? The Team of Professionals Involved in Your Real Estate Deal
- Receive and present in a timely manner all written offers or counteroffers to and from the Buyer
Time is of the essence in all real estate deals. Miss a deadline, or delay on submitting an offer and the whole deal can be shot. Make sure that your buyer broker makes time for you!
- Disclose to the Buyer all material facts related to the property or concerning the transaction of which they have actual knowledge
Buyer brokers are required to disclose information about the property that they actually know which can be material in your making a decision about whether or not to purchase the home or what price to offer. If they don't know it, they can't very well disclose it. Virginia is still a caveat emptor state.
- Account in a timely manner for all money and property received in which the Buyer has or may have an interest
You want to know where your money is and where it's going. Ask your buyer broker what happens with your earnest money deposit.
- Maintain the confidentiality of your personal and financial information
Anything you tell your buyer broker will be kept confidential (unless of course, you confess to murder or treason). Even after the transaction is over or the brokerage relationship is terminated. This duty is very important. Don't be afraid to discuss important details of your personal and financial information with your buyer agent. This information will be very important for them to assist you fully in purchasing a home.
To inquire about buying a Northern Virginia or D.C. home, please call me at 703-626-0715 or e-mail me at brian@brianblock.com for a confidential appointment to discuss your needs.
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If you plan to purchase or sell a home in the Northern Virginia or D.C. area,
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Brian, a buyer can't go wrong with buyer agency. They are fully represented. It is a great deal. Thanks for the list of duties.
Brian,
This is a well writren guide for successfully finding a buyer broker! Hope you do not mind me re-blogging this!
Tina in Virginia
Brian excellent thoughts on what a good buyer agent should be.
Hi Brian! This is a very well written overview of Buyer Agency in an easy to read and comprehend format. Love that hand pokin out at me with your card! GOOD JOB!
Deb
Good information for all buyers that is what we do for buyers if you are good
Not only is this good information for consumers, it is an excellent checklist for agents to make sure we do what we should.
You did an excellent job writing this post on duties of buyer agents... Best Wishes
Brian, Excellent post with a great summary of a buyer's agents duties. I think confidentialtiy is often forgotten both with sellers and buyers.
Brian, Buyer agency is a great thing that Maryland has but into place.
Very good post. All should read the agreement. Of course they do not so a good reminder thanks . It is interesting how similar yours seems to ours
Excellent Post Brian. This really spells it all out. What scares me is hoe many agents don't take the time to explain this to their clients!
What a great tutorial to prepare buyers for what they should receive from a buyers agent.
Great post.
Hi Brian;
Very good guide for successfully hireing a broker, thank you for sharing.
Brian: What a great list.. you have a well written blog post here
I like the way to outlines and explained the buyer broker contract in your area. It is clear, concise and easy for the consumer to understand.
Good post on Buyer agreements. They really are in the best interest of the consumer to be fully represented.
Brian - this is a well deserved feature of a very thorough review of buyer broker duties. Any buyer should be reading this so they understand the value to them of having representation just as a seller does. Easy to understand and very compelling.
Jeff
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Brian,
Well written and a good guide for us to follow......thanks for sharing.
Good advice. The only thing I would add is to make sure you know the rules and laws in your particular state. Agency laws are different in lots of states; VERY different in some.
Thats a great blog, very well structured and the content is of very high value. Definitely worthy of a featured post, Congrats!
I hope your buyers are listening to all that great advice!! We all don't know how much we "don't know"!
This all spells it out very clearly - way to go! I sometimes have a difficult time explaining it all!
Brian,
Great review of what WE call the BRA...snicker. Buyer's Representative Agreement...
I have never used one. Maybe I should but I have never had to. I have maybe lost a commission or two over the years but I like the old hand shake thing and 99% of my buyers are loyal and honest.
This, however, could be a wave of the future for my rural area as the agents are growing hungrier and hungrier. Thanks for the post!
I agree with everything you said Brian except for the exclusive agreement, I'm not a big fan of them, and they protect me. I truly believe that good people are either going to trust and respect you, provided you earn it. For those folks that are shifty and will not have alliegence, the agency agreement won't trump procuring cause in most states, so it doesn't mean much, unless the agent will get very aggressive with the buyer or other agent if they are cut out of the loop. I know we will get burned on occasion, but it just goes with the territory. I can hear the opposite viewpoints forming as I type! :-)
Well done-- these are excellent thoughts on what a good buyer agent should be.
Road map to Buyers Agency, Great Blog Brian an din detail Imight add.
This guide should be handed to every buyer. Great information.
I love buyer-agency agreements. When I discuss the agreement, I find it helps buyers understand what my duties are, how I get paid, and what is the nature of our relationship. Your post has been bookmarked and I will use some of the items in it to help explain the advantages to Buyer Agency.
Thanks