What is the Role of a Realtor as a Buyer's Agent?
Historically, even if a buyer was working with a non-listing agent, the agent had no legal responsibilities to the buyer. If the agent happened to be the listing agent for the property being purchased, the situation was even worse. The listing agent's legal and ethical responsibilities were to the seller, not the buyer. This left no one with legal and ethical responsibility to look out for the buyer.
Other People Are Reading
-
Purpose
-
In the past, when a home was purchased, the agent who had the listing handled the entire process. Because the listing agent's responsibility is to the seller, this could present a conflict of interest between the seller and the buyer. While a listing agent is capable of handling both ends of the deal, the fact remains that if a conflict arises, the agent must put the needs and desires of the seller before the buyer. Because of this potential conflict, the role of a buyer's agent evolved.
Locate Potential Properties
-
The buyer's agent works with the client, learning what is important to her in a home. This includes things such as neighborhood, size of home, age of home and price. The agent works to narrow down the number of properties, looking for the best fit for clients, saving them time and effort.
-
Maintain Confidence
-
A buyer's agent must hold in confidence any information the buyer shares. This is not the case with the listing agent, whose responsibility is to the seller. If the buyer shares information with the listing agent, the agent is required to share that information with the seller.
Educate the Buyer
-
A buyer's agent will work with the buyer, educating him about various properties under consideration and the real estate market in general. The agent can provide information on area demographics such as average age and average income within an area, plus information ranging from quality of schools to crime.
Negotiate
-
With the buyer's best interest his responsibility, the agent negotiates the sale price and contract terms, with the goal of getting the best possible deal for his client. The agent is the buyer's advocate and everything the agent does must be for the benefit of the buyer. For instance, a buyer's agent can look at a home's history, such as how long it has been on the market and how long the current owner has been in the house, background information that can help the buyer when presenting an offer.
Provide Professional Recommendations
-
The buyer's agent can recommend inspectors, mortgage brokers and other professionals with the buyer being confident that the recommendations are being made with her best interest in mind.
-
References
- Photo Credit home sweet home image by David Dorner from Fotolia.com
