These posts are a little too long…..I will attempt to give you the “short version” of the values of Buyer Agency!
Here is the short version:
“Make the connection with an “EXCLUSIVE BUYER”S AGENT” early in the process. No upfront fees are charged, and if you decide not to purchase-still no fees. It is a GREAT way to purchase to relieve pressure and to know that you have someone in “your corner”
……and now the long version…..here is more details as to why!
First of all, a buyer’s agent operates with the BUYER as the client, not the seller( the exception of this would be limited agency, when the agent has a prior client that is LISTED with him/her-to muddy the waters). Lets talk about limited agency in another post…..
Assuming that the buyer’s agent is completely representing the buyer, then the agent owes full 100% fiduciary to the buyer! This means that the buyer has the best of all worlds because the agent’s knowledge, negotiation, and experience will benefit the buyer!
The agent will operate with the buyer to help to locate, negotiate, inspect, and take the transaction to closing for NO ADDITIONAL cost than if the buyer was out wandering around from property to property without an exclusive agent.
The buyer has the option to have the agent only look at “listed property”, or there can be an agreement (we ask for it in writing-The ORR TEAM) that will request that the agent look at (“for sale by owners”, expired listings, auction property, or any other possibility) the whole spectrum of properties on behalf of the buyer. The written agreement states that “in the event a property is closed, the buyer will pay a fee-(typically 3.5%-5% or a minimum fee of $1,500) for representation. This fee is typically charged to the seller during negotiations, so no “out of pocket” monies are exchanged between the buyer and agent.
Another advantage for the buyer is that we can limit litigation and confusion by handling all negotiations and discussions in writing with the seller. Without verbal discussions, hopefully the buyer will obtain the property of choice with $$$$$ savings and much more protection. A buyer’s agent utilizes a set process for negotiations, inspections, and transaction management. We will offer choices for inspectors, but we resist choosing the actual inspector – we encourage the buyer to make the decision as to who will perform the inspections to minimize the concern of “conspiracy” in the transaction.
A diligent buyer’s agent will complete a CMA BEFORE an offer is submitted for review by seller. The home will be pre-inspected by the agent’s experienced eyes for financing hiccups and maintenance issues-however this is NO SUBSTITUTE for professional inspections. Special needs for the buyer will be taken into consideration, such as vital closing and/or necessary possession dates, as well as cash shortages-where closing costs for the buyer can be built into the transaction. A diligent buyer’s agent will make sure that the seller’s disclosures are compliant and will request operating costs (taxes, maintenance and utility costs) be considered before the offer is made or add a contingency in the offer in regards to those items if the information is not readily available.
A diligent buyer’s agent will work with lenders to obtain “good faith estimates” to help the buyer to know EXACTLY (or very close) what cash will be necessary to close, and help to contain the monthly payment into a comfortable range for the buyer. We will also show the buyer which financing types offer various advantages to them with no strings attached. Many times, I have suggested to the buyer to wait until credit scores improve to obtain better interest rates. Please forget the myths that the Real Estate agent is attempting to increase the sales price, because in Indiana that is a violation of the law, and it is something that we WILL NOT DO…period.
The buyer’s agent will help the buyer make informed decisions on his/her buying strategy and operate with that strategy in mind. Of course a property priced well at first, will typically sell at market value or in the event of a bidding war-above full price. A well informed buyer will make the final decision with a “buyer’s agent”.
I have told many, many buyers……..“if you were my son or daughter, (buying in an area that I am not knowledgeable-outside of our central Indiana market) knowing what I know-I would suggest that you find an exclusive buyer’s agent that you are comfortable with so that you don’t get caught with less than the best deal, or worse…buy a poor property because noone was protecting your interests”. Many times, we have suggested to the buyer to keep looking for another property, if a seller is unreasonable or if the property has expensive repairs looming. A diligent buyer’s agent also will make sure you see the best houses first, through all avenues!
Call your agent and ask about Exclusive Buyer’s Agency today……..or if you don’t know a “BUYER’S AGENT, give the Orr Team a call and interview us today! We will help you understand the three most important factors when selecting your property (LOCATION, LOCATION, LOCATION) and can also assist you with experienced and honest craftsmen that can update that fixer-upper or investment property.
The Orr Team’s philosophy is and has been “if there is a concern that when the buyer calls to resale, we want that buyer to know that concern BEFORE THE BUYER BUYS, NOT AFTER……. Of course, it is impossible to find everything, but with EXCLUSIVE BUYER’S AGENCY you should have “peace of mind” that you will make the best decision!
