Home buyers tend to elect to have a Realtor® represent them in the home buying process. There is no disadvantage to a choosing a buyer’s representative in the Oahu market, but there are many benefits. The commission paid to the buyers agent is almost always determined by the MLS and is paid by the seller to the listing agent (through his/her brokerage) and then distributed to the buyer’s agent (through his/her brokerage.)
Whether or not you elect to have buyer representation, this commission has already been set contractually and is still due to the listing agent/brokerage. Most often, taking a buyer’s agent out of the equation will save neither the buyer or the seller any money, and it also results in the lack of representation for the buyer.
My clients choose me as their buyer representative because:
- They want the benefit of advice and judgment at every step of the transaction.
- They want a professional advocate representing their interests and not the interests of the other party.
- They want their personal business kept confidential from all other parties to the transaction.
- They want strategies on pricing, writing offers, negotiation, repairs and contingencies.
- They want to get the home they want, at the best possible price, in the least amount of time possible.
DUTIES OF A BUYERS AGENT
To Represent You in the Best Manner Possible, a Buyer Agent Should:
- Have a thorough working knowledge of the mechanics of the real estate business.
- Have solid knowledge of the real estate market and local neighborhoods.
- Be a strong negotiator.
- Be accessible.
- Be able to anticipate pitfalls.
- Have exceptional problem-solving abilities.
- Have the ability and desire to work effectively and efficiently.
- Have solid communication skills paired with the ability to work well with cooperating agents.
- Pay close attention to detail, be well organized and carefully follow through.
- Exhibit a high level of client service.
- Demonstrate commitment to advancing their real estate education through education and volume-based designations.
- Be trustworthy and committed to working for your best interests only.
The National Association of REALTORS® has shown that when a Buyer’s Representative was used, the prospective Buyer found a home an average of one month faster and gained information & access to a minimum of eight more properties than those consumers who did not use a Buyer’s Representative.
I make the commitment to bring all of these skills “to the table” on your behalf when you are my client.
OPTIONS FOR REPRESENTATION
Seller Agency & Representation – when a Buyer elects not to be represented
- Agent represents the best interests of the Seller and owes the Seller fiduciary duties
- Agent owes honesty to both Buyer and Seller
- Agent must give Buyer all information regarding physical material defects of the property of which the Agent has actual knowledge
BOTTOM LINE: The Buyer has no one representing their best interests on price, terms and conditions and no professional opinion on which to rely. Also, anything the Buyer says to reveal his/her confidential information or financial situation, the Agent is required to tell the Seller if it will better his/her position in the transaction.
Buyer Agency & Representation – when a Buyer elects to be represented
- Agent owes fiduciary duties to and represents the best interests of the Buyer
- Agent works to get the Buyer best price and terms on the home they choose to purchase
- Agent owes honesty to both Buyer and Seller
- Agent must share all material facts regarding the physical condition of the property and the transaction of which they have actual knowledge
BOTTOM LINE: A professional and fully licensed Realtor® works closely with the Buyer to find the best property, at the most acceptable price, terms and conditions for their client and represents the Buyer’s interests in every part of the transaction.
Designated Agency – when a Buyer Agent sells an in-company listing
- Broker/Manager becomes Dual Agent working for all parties in the transaction. All information is kept confidential unless written permission is gained from all parties.
- No confidential information is shared between Agents.
BOTTOM LINE: This occurs often on Oahu since it is a relatively small market and there are a limited number of real estate companies/brokerage. Sales will often occur with two Realtors® from the same company.
Dual Agency – when an agent sells their own listing and represents buyer & seller
- Agent/Broker owes BOTH parties to the transaction fiduciary duties. May not really give advice or opinion
- Objective: To get a mutually satisfactory agreement among parties
- Confidentiality due to all parties unless written permission to disclose information is given