Frequently Asked Questions-click to expand for answers

...the easiest way to understand this is comparing it to court. 

You go to court, there are 2 parties, there are 2 attorneys. Each attorney represents their client and negotiates on their behalf. 

If one side does not have an attorney, they have a weaker position because they do not understand the fundamentals and details on how cases are lost or won. The attorney also takes the emotions out of the situation and can clearly see the goal and keep the client on track.

Same with real estate. Lots of emotions will sway buyers into agreeing to things they may not have IF they had proper representation and had their best interest being represented and negotiated by a strong Buyer Agent. An objective professional who can clearly see all the parts of the offer, the contract and buyer's needs and knows the buyer's financial ability is the best way to make good decisions, WITHOUT emotions caving in.

On a personal note, I've had 27 transactions of my own, and can honestly tell you, even though I know this business of real estate, inside and out, even though I know my emotions can take over, and tell myself to stay logical and don't get emotionally involved, it is HARD. 

Once you find a property you love and really want, or your partner really wants, the combined emotions of two people will mess up the best strategy without  an impartial, professional third party. Same when it comes time to sell. 

I STILL get butterflies in my stomach when I'm closing a deal. It's normal. And if it still happens to me, I can guarantee, unless you have a heart and head made of stone (or unless it is a total investment deal based on numbers), your emotions will get you somewhere along the way and you'll give up something you don't want to.

Remember, a Listing Agent represents the Seller. Period.

Yes, the Listing Agent absolutely can put a Purchase and Sale contract together for both parties, but that is all the Listing Agent can do for the buyer.

The ONLY time it would not be true is in a rare Disclosed Dual Agency situation where the same agent has a signed contract with the seller and a signed contract with the buyer BEFORE the Purchase and Sale/Contract/Offer comes together.

A Buyer Agent representing the Buyer has a fiduciary responsibility to represent the buyer only.

their own client, protect the needs and position of the client, and negotiate on their behalf.

Many buyers think if they go directly to the Listing Agent to make an offer, they'll get the best deal. 

This is not the case. 

The Listing Agent can only represent the Seller's position, and is required, by their fiduciary responsibility in the contract with the seller, to tell the seller everything the buyer says.

If a buyer says to the listing agent "I can pay full price, don't tell the seller that. Tell the seller I'm willing to make an offer for 10% less than the sale price. 

That agent, having a fiduciary responsibility to the SELLER ONLY will go to the seller and tell the seller, this buyer can afford full price but only want's to offer 90% of the sale price. 

The seller now knows the buyers position. 

What most don't know is that the buyer usually ends up paying more by going directly to the listing agent.

If the buyer lowballs the price, doesn't tell the Listing Agent he can afford full price, the seller might just say no and close down any further negotiations. Especially if it's a 'stupid' offer.

If a buyer has a Buyer Agent, the Buyer Agent knows the buyers position, but doesn't share that with the Listing Agent. 

A well seasoned strong negotiating Buyer Agent will ask certain questions of the Listing Agent to understand the seller's 'trigger's' and knows how to learn more about what the seller wants out of the deal. Then Buyer Agent will work with the buyer to craft the strongest offer possible, without giving away the buyer's financial position. Even if's a 'stupid' offer, a good Buyer Agent will submit the offer - regardless of whether they think it's going to be accepted by the seller or not. We as agents never really know 100% of what our clients are thinking and they often surprise us. It's always worth it to do what our clients want. Our job is to make sure they understand what the outcomes could be and warn them if it will put them in a position to lose totally. But in our work, we must always honor the clients position and keep our fiduciary responsibility to them.

A buyer going directly to the Listing Agent doesn't save anybody money. The Listing Agent is going to get paid the fee no matter what. The fee structure is changing in August 2024, and there will be much confusion for buyers, sellers and agents who only do one or two deals a year and don't have these conversations very often. The change is nationwide due to NAR lawsuits and settlements over the past 9 months. I'd be happy to explain more in detail for you.

But for now, just know, that you as a buyer, will often pay more by making an offer directly with the Listing Agent without being represented by a Buyer Agent.

Buyer Beware.

A Buyer Agent commission comes from one of two places, one is the Buyer and two is the Listing Agent (as part of their contract with the seller).

This is changing in August 2024.

After the rule goes into effect, Buyer Agents will expect not to be compensated by Listing Agents and will be compensated directly by their buyers. It is worth a conversation if you need to know more details.

Read BIGGEST MISUNDERSTANDINGS... above before you go it alone. Trying to SAVE money, by eliminate a professional Buyer Agent could end up costing you much more in the end. Also, some mortgage companies are working with buyers to get it included in payments.

A solid Buyer Agent is worth their weight in gold and worth every penny, for negotiating you through what could be expensive land mines. Especially if they find something that wasn't disclosed, have to help you negotiate a serious home inspection issue, a title issue arises, or there are issues that arise on the sellers side that you weren't aware of. A Buyer Agent will also help you decide what size deposit to offer and make sure you are not held over a barrel if things don't go right (as happened to me in the one and only FSBO I bought years ago, when I had no protection to get my deposit back and if I didn't move forward with buying the house, would have lost it all).

A strong Buyer Agent when writing up the offer, will have ideas on how to get some or all of your commission paid through the transaction. This will be different for every offer you make. And it's not a guarantee. But a good Buyer Agent will make things happen for you that you never though possible. Hence, worth their weight in gold.

Do yourself a favor and ask questions if you are confused. Questions are good, and highly encouraged!! You may do this only a few times in your life, whereas an experienced agent has done it hundreds of times.

Don't forget, without Buyer Agent representation you are considered an unrepresented buyer, and it's Buyer Beware from start to finish.