Buyers Beware Buying real estate is totally different than purchasing a car, a boat or patio furniture.  It is an asset that will grow in value over time. It requires careful planning and due diligence throughout the buying process. There are no returns after a real estate closing. At Capstone we believe everyone should have a buyers agent. Our investors believe in it you should too.

• The seven steps to buying are here.
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• Get some more excellent buying advice here.
• No bank qualifications needed - lease purchase today. here.
• Confused about new construction?  Click here.
  

Buyer Agency And You

You have made the decision that you want to buy a home, now you must answer the question: 

Should I use a Realtor or do it by myself?

Yes, you should use a realtor that works exclusively for you, a Buyer’s Agent.  More details on why this is the correct answer to this critical decision is below.

It is important to know that if you visit an open house, a model home in a new sub-division, or contact the listing agent directly on a property, that agent is there to represent the Seller/Builder.  They are contractually obligated to negotiate on behalf of and represent the seller, not you, the Buyer.  If you use a buyer’s agent, you will have the same contractual agreement with an agent that the seller has and you will have someone to negotiate in your best interests and represent you throughout the entire transaction…AT NO COST TO YOU!

Who pays the Buyers Agent commission?  In virtually all situations the seller pays the commission per their listing contract.

For MLS listed properties, a separate agreement has been negotiated between the seller and the listing broker that includes compensation for a buyer’s agent.  When a buyer’s agent brings a purchaser, the listing broker and seller have agreed to a commission for the buyer’s brokerage that the seller pays. 

Almost all builders have built in a commission for buyer’s agents.  If you choose to have no representation, or represent yourself, the builder keeps the buyers agency commission as additional profit. 
Most FSBO’s will co-op with a buyer’s agent, meaning pay their fee.  FSBO’s are educated on the above facts and understand that the majority of buyers use the assistance of a Realtor, so agree to pay the buyers agent commission.

Why Can’t I Just Get What I Need From The Internet and Do It Myself?

The Internet is a great tool for gathering data, but raw data is only part of the problem when it comes to buying a property.  This article “I Have the Internet – Why Do I a Need a Realtor When I Buy a Home?” illustrates why you need more.

How Can a Buyer’s Agent Help Me?
Per state laws, realtor code of ethics and court decisions, a licensed Florida Real Estate Agent owes these duties to a homebuyer:

That’s the legal definition, but you may ask:
What does a Buyer’s Agent actually do for the homebuyer? 
Like other agents, a Buyer’s Agent will show you available homes, point out the property’s features, provide financing information and submit the offer to purchase.  But that’s not all. As your representative, a Buyer’s Agent will give you loyalty, share valuable and essential information with you if the agent knows it, such as:

Most important for many buyers, you can ask a Buyer’s Agent for advice and assistance in setting your offering price and structuring the other terms of your offer.  You will have peace of mind knowing an experienced advocate is working on your behalf to help you buy at the best possible terms.

Who Needs a Buyer’s Agent?
If you want to make sure you buy smart, you need a Buyer’s Agent.  Purchasing a home without representation is possibly the biggest financial mistake you can make.  A Buyer’s Agent can guide you each step of the way to prevent costly errors.  Failure to find out about defects in the property or the actual value of the property, of course, is an expensive mistake.  Failure to negotiate a contract that works for you can cost you plenty as well. 

With a Buyer’s Agent, you can ask for and receive advice and assistance in selecting the best property and determining a negotiation strategy getting the best price and contract terms.  You need a buyer’s agent if:

In all these cases, and most others, you will be best served by a Buyer’s Agent that puts your interests first. 
Also, if the real estate professional helping you find a home is a relative, close friend, business associate or an agent you previously used, chances are that you expect them to represent your interests, so you should establish a Buyer Agency relationship.

Can’t a Seller’s Agent Help Me Buy? 
Not really.  Without a Buyer’s Agent, you’re really on your own.  Keep in mind, the Seller’s Agent is working for the seller and is the seller’s legal representative.  Yes, a Seller’s Agent can offer buyers some services, including a diligent search to find the right home, an explanation of available financing, calculation of monthly payments, estimation of settlement costs and a presentation of your offer to buy.  What a Seller’s Agent cannot do is disclose information not in the best interest of the seller such as an opinion of the home’s real value or what price and terms the seller would accept.  By law, the Seller’s Agent must negotiate on behalf of the seller and may not withhold from the seller information that could strengthen their bargaining position.  That means you, as a buyer, should be careful not to disclose to the Seller’s Agent any financial or personal information that could be used against you.

What Is a Transaction Broker?” 
A real estate brokerage whose agents meet the states license requirements, but limits it representation to assisting both the buyer and seller in facilitating the transaction for a commission without giving either the buyer or seller loyalty.  If the person you are working with gives you a "Transactional Broker Notification", it means you do not have an agency relationship -- you are dealing with a real estate licensee who has NO duty to counsel or advise you.  This relationship gives the licensee the right to compensation and it limits that licensee's liability to you.  Basically, it is for the licensee's benefit and not for the benefit of the Seller or the Buyer.  Don’t accept a Transaction Broker, demand a Buyer’s Agent.

The Bottom Line. 
If you want an agent to fully represent your best interests, if you want help evaluating a property, if you want someone to negotiate to get you the best price and the best terms, if you want to purchase a home in what’s becoming the most popular way to buy, you’ll want to enlist the aid of a Buyer’s Agent.

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