Benefits of a Tahoe Buyer’s Agent
If you’re like most people, your real estate investments are some of your largest, and they may be some of your most important assets in your financial portfolio.
The process is, by nature, filled with checks and balances – and many complex details. As in any type of process, or proceeding, you and your interests deserve their own advocate and representation.
In the past, real estate agents were legally obligated to protect the interests of the home seller. Today preferences have changed, and for the better. One of those changes is that more home buyers are choosing to have their own real estate agent, known as a Buyers’ Agent, to legally represent them and not use the Listing Agent – Sellers’ Agent as their representative.
“A Buyer’s Agent represents you, the buyer, not the seller, and has full fiduciary duties, including loyalty to you. “
By definition, the buyer’s agent has your best interests in mind throughout the entire transaction. The percentage of home buyers with buyer representation has grown significantly in the past decade. According to a recent National Association of Realtors® survey, nearly half (46%) of home buyers used the services of a buyer’s agent last year, and four out of every five buyer’s agent agreements were in writing.
The benefits of buyer representation is the dedication of a buyer’s agent to the home buyer, not to the seller. The buyer’s agent and home buyer establish a mutual agreement, known as a buyer agency agreement, that will entitle the home buyer to, but is not limited by:
Cost In the Tahoe area, Buyers’ Agents are paid as a “Cooperating Broker” and that commission expense is paid for by the Seller out of their closing costs, so the cost to the Tahoe Buyer to have a Tahoe Buyers’ Agent is ZERO, or FREE!
Some buyers are under the impression that if they use the same real estate agent as the seller, that the seller will save the entire buyer commission and that savings can be passed on to them in their purchase price.
Nothing could be farther from the truth. As a buyer, the commission and how that is to be paid out was negotiated between the seller and the listing agent before the property came on the market. While some listing agreements may call for a reduction in the overall commission rate if the listing agent also represents the buyer, that saving is typically one percent (1%), or less.
Is the lack of having your own representative,your own representative worth the 1% saving the seller may get? On a $500,000 home, that savings might be $5,000, very small in comparison to what is at stake, which is getting the best buyer terms and price possible.
Loyalty The real estate agent must act in the best interest of the buyer. No loyalty is owed to the seller, other than to be fair and honest in all dealings with them.
Disclosure All material facts such as relationships between agent and other parties, existence of other offers, status of earnest money, seller’s financial condition, property’s true worth, commission split with other brokers, and legal effect of important contract provisions.
Confidentiality Any discussions, facts, or information that should not be revealed to others but does not include responsibility of fairness and honesty in dealings with all parties.
Accounting in dealings Reporting of where any money is placed.
Reasonable Skill and Care Arriving at a reasonable purchase price and advising the buyer of such, affirmatively discovering material facts and disclosing them to the buyer, investigating the material facts related to the sale. With a buyer agency, the interests of the home buyer will be represented in the purchase of the home.
This scenario is different from a typical transaction where the buyer is not technically represented (buyer represents themselves), or when there is dual agency and the buyer is represented by the same agent that is also representing the seller.