Buyer's (and sellers) beware..... do you know who your agent is working for?
Let's face look at homes is fun!! Understanding some of the legal part of it is not. I see so much confusion among buyers who think their real estate agent is working for them when they really are working for the seller or even no one.
In Massachusetts it is state law that an agent reveals to a prospective client their agency relationship(how an agent is working with a client) to that prospective customer/client.
Let me ask you a silly but important question.
If you were a baseball player would you sit it the opposing teams dugout and let the opposing teams coach tell you how you should play your game ?
Of course not, and I know many of you are snickering. Yet many buyers will buy a home directly from a listing agent of a home and let them guide them through the process and then say how great their agent was. That is equally as ridiculous. They are working for the seller, not the buyer.
Take Suzy agent, you meet her at an open house:
- She is very nice.
- She is very informative
- She seems to care....
But of course, her job is to sell you that home at the highest possible price in the shortest amount of time. She will do whatever it takes to sell you that home or any other home listed by her company.
As a seller's agent she owes her client a fiduciary responsipility. She must give her clients, complete obedience, loylalty, disclosure, confidentiality, accountability and reasonable care.
Her seller's needs must come before her own or your needs. If you happen to reveal something confidential about yourselves, like how much you love the home, your need to buy quickly...... she must immediately disclose this to her seller's. She is going to justify every red cent her client is asking for the home and spin a very positive light. A seller's agent can only paint a spin that benefits her seller with in the law. A seller's agent must do what is best for the seller.
In Massachusetts, you can now run into what is called a facilitator, a facilitator does not owe anyone obedience, confidentiality or loyality or reasobable care. There job is to put a deal together between buyer and seller and make the deal go as smoothly as possible. A facilitator will paint a spin that befits putting a transaction together with in the law basically you are on your own as far as negotiating, tracking timelines and making decisions.
On the opposite side of the coin, you can work with a buyer's agent. A buyer's agent owes their buyer complete obedience, loylalty, disclosure, confidentiality, accountability and reasonable care. A buyer's agent must do what is best for the buyer. They can provide you with an accurate opinion of value on a home, recommend vendors like attorneys, home inspector's, mover's and more... They can negotiate on your behalf and layout negotiating strategies that makes sense for you given the marketplace.
The great thing is most buyer's agents are paid by the seller at no cost to the buyer!! Most people are concerned about geting the best deal possible. If a buyer's agent can save you a $1000.00 would it be worth it?
What if a buyers agent could save you $2500 or even $5,000 or $10,000.
I think most of you would agree that even a $1000 would be worth it. As a full time real estate agent, I have the pulse of the real estate market. Many times I know what you want before you know what you want. I know the best negotiating strategies based on your needs and the given marketplace. (sometimes its negotiating to get the house you want and not the best price) I know what is standard and typical in the industry.... I know what repairs can generally be done by a seller after a home inspection in a given market. I know how to present those repairs to get the repairs done. I can tell you when a house is priced aggressively or is over priced. This is my bussiness I do it every day. There are many good buyer's agent, who can help you if you let them. You do not need to go it alone.
Agency law varies from state to state, as a buyer(even seller's need to pay attention, I have seen sellers hire agents as facilitators to list their home) take the time and learn how an agent can work with you. It can be the best decision you make. Don't let the other teams coach, guide you through the process.... get your own...it is free!!
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This post, "Buyer's, What you might not know could hurt you" was provided by Kevin Vitali of EXIT Group One Real Estate In Tewksbury MA. You can contact Kevin by email at kevin@kevinvitali.com or call 978-360-0422.
I pride myself in the quality of my work while helpingbuyers and sellers make dreams come true.
Kevin has been helping buyers as a Buyer's Agent in northeast Massachusetts, around the Merrimack Valley, Middlesex County, Essex County, North Shore and Southern New Hampshire including the towns of Andover, Billerica, Boxford, Chelmsford, Dracut, Georgetown, Groveland, Haverhill, Lawrence, Lowell, Merrimac, North Andover, Newbury, Newburyport, North Reading, Rowley, Tewksbury, Tyngsboro, Westford, Wilmington, West Newbury
Hi Kevin - Great article. You point is well made and is great information for buyers who could make the mistake of using the listing agent to also represent them in a transaction. We all know that the first loyalty of the selling agent is to their client. When that agent becomes a dual agent it is virtually impossible for them to be neutral in that transaction.
Well said, Kevin. I'm amazed at the number of buyers who still do not realize the difference a buyers' agent can make. I'm also amazed at the listing agents who still resent the existence of buyers' agents. It's a battle worth fighting, though.
Kathryn- I have freinds who call me after they start feeling a little heat when they buy directly from the listing broker asking my advice.... They get so excited about buying a house they don't think the small but important details through. It's amazing.
Kevin - I still think that there are a lot of home buyers out there that don't understand the difference between a sellers agent and a buyers agent. They don't understand how real estate works, and oftentimes it is too late, after they meet the listing agent and start working with them.