FAQ’S Regarding Buyer’s Agents

The Buyer’s Agent and the Seller’s Agent divide up the work and split the fee that the Seller is obligated to pay. This way, both agents are properly compensated, and their respective clients each receive fair representation, without conflict of interest. Having a Buyer’s Agent represent the Buyer does not add any cost to the transaction.

If the Buyer does not have an agent of their own, then they must enter into relationship with the Sellers Agent instead. This is called a Dual Agency and it implies a conflict of interest for the Agent. For that reason, most Sellers Agents try to avoid Dual Agency. Since a good percentage of Dual Agency transactions result in lawsuits, it just isn’t worth it for most Sellers Agents, particularly with a Buyer that they do not know well.

It doesn’t cost the Seller any extra if the Buyer is represented by a Buyer’s Agent. However, if there is no Buyer’s Agent, the Seller’s Agent stands to make more money. But most Seller’s Agents do not want the extra liability and conflict of interest. Those that are willing to take it on are usually not willing to compromise their own fees because there is twice the work and more than twice the liability. Also, most sellers prefer that their agents not represent buyer. Nonetheless, some Seller’s Agents do try to coerce buyers into Dual Agency relationship without explaining the legal ramifications. Be warned against this scenario, because lack of good representation can end up costing the Buyer hundreds or thousands of dollars. There is too much at stake to take such a risk.

Absolutely. That’s when the Buyers’ Agents most valuable contribution begins.

No. Remember, it doesn’t cost the Buyer anything to have their own agent. Buyers who are not working with an agent during the initial stages of their search are at a big disadvantage. Remember, the only person who can give you straight answers to all your questions about the market, what’s available, and about specific homes, is your own Buyer’s Agent. And your agent can point out good opportunities and steer you away from homes or builders that spell trouble. Having a Buyer’s Agent on board from the very beginning, preferably one who has years of experience and has seen thousands of homes, is a big advantage. The other reason to establish your Buyer’s Agency relationship early on is so that you won’t be scrambling later, when you find the right home. You will handicap your search and hurt your credibility if you are without a Buyer’s Agent, and it is never too early to start that relationship.

It depends on your agreement with the agent. We generally work on a flexible basis, without a binding written agreement. This means that our clients are free to switch to another agent at any time. If we are doing our job properly, there ought to be no reason to switch, and we have never experienced the problem of "losing" a client that we felt we could work with. If we don’t feel that we can take you on as a client or provide you with the proper assistance, you’ll be the first to know.

It is true that certain less ethical Buyer’s Agents think only of the commission they will earn, which is normally based upon the sales price. That is why you need to select your agent carefully. We feel that the fee we earn today is not our chief motivation factor. It is the fee that we will earn tomorrow, by satisfying you today that is of value. We are in this business to cultivate long-lasting relationships with clients. Your satisfaction today is the only way for us to be successful tomorrow.

Any realtor or brokerage company willing to rebate part of their commission is probably unable to provide any kind of quality service. It might help if you compare real estate brokerage to other professions. The best, the brightest and the most experienced professionals naturally go where the highest fees can be earned, not to firms that discount their fees. This is true in medicine, law, software design, and just about any field you can imagine. You should not begrudge your agent the fee he earns (from the Seller) because a good agents service is always worth more than the fee.

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