Is it Necessary to Have a Buyer Agent?

This entry is part 2 of 4 in the series Property Finding Services.

1. Are Your Interests Represented?
2. Is it Necessary to Have a Buyer Agent?
3. Property Finding FAQ: What do You Do that I Can’t?
4. Property Finding Step by Step

Why a special section on Buyer Agency?

Well, one of my reasons of putting this on my site is that I want you to enlist my Property Finding Services.

But what makes it interesting to You, the potential Buyer or Tenant, is the fact, that you might believe that the Real Estate Agent with whom you are working - sometimes on a daily basis - represents You and Your interests. Without certain disclosures, this definitely is not the case.

The Real Estate Agent, unless specifically disclosed otherwise, represents the Owner in any transaction. It is that Listing Agent’s fiduciary duty (where their loyalty lies) to protect their own client’s, the Owner’s position at all times.

Buyer Agency, may be a good option available to you

Simply put, Buyer Agency allows the realtor whom you work with, to put your interests above all others.

Example 1: You see a house advertised in a paper or on the internet. You contact the Listing Agent (who will be advertising the home) and make an appointment to see the house. The Listing Agent is friendly, informative, and tells you what you believe to be everything about the house. But the Listing Agent is hired, paid by, and represents the Owner, not you.

Example 2: You are working with a Real Estate Agent, who shows you 25 different homes over 3 weeks (that’s a nice number). By the end of the three weeks the Real Estate Agent knows all four of your children by name as well as all of your personal likes and dislikes, but does not offer Buyer Agency. You feel comfortable with the Real Estate Agent, revealing important personal information. Without Buyer Agency, “your” Real Estate Agent is paid by the Owner, or, in other cases, receives part of the commission of the Owner’s Listing Agent. This Real Estate Agent therefore owes loyalty to each and every one of those 25 Owners - not you. Any information you reveal to the Agent, must be relayed to the Sellers.

“Okay,” many buyers say, “so the Real Estate Agent represents the Seller and not me. Is that a big deal?”

Maybe not, but it is important to understand that if the Real Estate Agent is loyal to the the Seller, they cannot reveal certain things to you, the Buyer or Tenant:

• The reason for selling (unless the Seller authorizes it)
• Any concessions, in price or otherwise, that the Seller may be willing to give up
• Any conversations that the Seller and the Agent may have had
• Any information that could be detrimental to the Owner or give you an advantage.

Buyer Agency turns the tables

Enlisting the services of an exclusive Buyer Agent, you have the representation from the Agent whom You’re working with, not the Owner.

If you are represented by your Buyer Agent, some of the potential benefits include:

• Your Buyer Agent can reveal to you information about what price similar properties in the area have been listed for and sold for.
• Your Buyer Agent can reveal to you any information about the Owner that the Buyer Agent has been able to ascertain. This may include reasons for selling, potential concessions, or other information that may be to your advantage.
• Your Buyer Agent can also relay to you information about property value trends that may influence your decision or your negotiating power.

Is it necessary to have a Buyer Agent?

No. Thousands of Home Buyers have been well served dealing with the Owner’s Listing Agent (it used to be the only way it was done).

The important thing is to understand your options, so that you do not unintentionally accept less representation than you want.

Next: Property Finding FAQ: What do You Do that I Can’t? »

Topics: property purchase in Hungary, buyer agency, buyer agent, Property Finding Services, Budapest property, realtor